26 U.S. Code § 672 - Definitions and rules
For purposes of this subpart, the term “adverse party” means any person having a substantial beneficial interest in the trust which would be adversely affected by the exercise or nonexercise of the power which he possesses respecting the trust. A person having a general power of appointment over the trust property shall be deemed to have a beneficial interest in the trust.
For purposes of this subpart, the term “nonadverse party” means any person who is not an adverse party.
A person shall be considered to have a power described in this subpart even though the exercise of the power is subject to a precedent giving of notice or takes effect only on the expiration of a certain period after the exercise of the power.
Notwithstanding any other provision of this subpart, this subpart shall apply only to the extent such application results in an amount (if any) being currently taken into account (directly or through 1 or more entities) under this chapter in computing the income of a citizen or resident of the United States or a domestic corporation.
In the case of any transfer directly or indirectly from a partnership or foreign corporation which the transferee treats as a gift or bequest, the Secretary may recharacterize such transfer in such circumstances as the Secretary determines to be appropriate to prevent the avoidance of the purposes of this subsection.
1998—Subsec. (f)(3)(B). Pub. L. 105–206 substituted “section 1297” for “section 1296”.
1996—Subsec. (c). Pub. L. 104–188, § 1904(a)(2), inserted “subsection (f) and” before “sections 674” in closing provisions.
Subsec. (f). Pub. L. 104–188, § 1904(a)(1), amended subsec. (f) generally. Prior to amendment, subsec. (f) read as follows: “Special Rule Where Grantor is Foreign Person.—
“(1) In general.—If—
“(A) but for this subsection, a foreign person would be treated as the owner of any portion of a trust, and
“(B) such trust has a beneficiary who is a United States person,
such beneficiary shall be treated as the grantor of such portion to the extent such beneficiary has made transfers of property by gift (directly or indirectly) to such foreign person. For purposes of the preceding sentence, any gift shall not be taken into account to the extent such gift would be excluded from taxable gifts under section 2503(b).
“(2) Regulations.—The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subsection.”
1990—Subsec. (f). Pub. L. 101–508 added subsec. (f).
1988—Subsec. (e). Pub. L. 100–647 amended subsec. (e) generally. Prior to amendment, subsec. (e) read as follows: “For purposes of this subpart, if a grantor’s spouse is living with the grantor at the time of the creation of any power or interest held by such spouse, the grantor shall be treated as holding such power or interest.”
1986—Subsec. (e). Pub. L. 99–514 added subsec. (e).
Amendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.
Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Written determinations for this section
These documents, sometimes referred to as "Private Letter Rulings", are taken from the IRS Written Determinations page; the IRS also publishes a fuller explanation of what they are and what they mean. The collection is updated (at our end) daily. It appears that the IRS updates their listing every Friday.
Note that the IRS often titles documents in a very plain-vanilla, duplicative way. Do not assume that identically-titled documents are the same, or that a later document supersedes another with the same title. That is unlikely to be the case.
Release dates appear exactly as we get them from the IRS. Some are clearly wrong, but we have made no attempt to correct them, as we have no way guess correctly in all cases, and do not wish to add to the confusion.
We truncate results at 20000 items. After that, you're on your own.
- Basis of Property Acquired From a Decedent : 2015-10-30
- Exceptions to General Rule : 2015-10-30
- Association v. Trust : 2015-08-07
- Trust Income, Deductions, and Credits Attributable to Grantors and OthersAs Substantial Owners : 2015-08-07
- Exceptions to General Rule : 2015-08-07
- Subpart E not to Result in Foreign Ownership : 2015-08-07
- Tax On Generation Skipping Transfers : 2008-05-30
- Trust Income, Deductions, and Credits Attributable to Grantors and OthersAs Substantial Owners : 2008-05-30
- Related or Subordinate Party : 2008-05-30
- Imposition of Gift Tax Imposed v. Not Imposed : 2008-05-30
- Irrevocable Trusts : 2005-12-02
- Income for Benefit of Grantor : 2005-12-02
- Administrative Powers : 2005-12-02
- Power to Control Beneficial Enjoyment : 2005-12-02
- Definitions and Rules : 2005-12-02
- Tax On Generation Skipping Transfers : 2005-11-18
- Power to Control Beneficial Enjoyment : 2005-06-10
- Related or Subordinate Party : 2005-06-10
- Persons Treated as Grantors : 2004-11-05
- Power to Control Beneficial Enjoyment : 2004-11-05
- Transfers to Foreign Trusts : 2004-11-05
- Party Required to File : 2004-11-05
- Income Distributed to Grantor or Spouse : 2004-11-05
- Requirement for Filing Return : 2004-11-05
- Definitions : 2002-10-25
- Definitions and Rules : 2002-10-25
- Property Within U.S. : 2002-10-25
- Tax On Generation Skipping Transfers : 2002-07-19
- Gift v. Not a Gift : 2002-07-19
- Related or Subordinate Party : 2002-07-19
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