26 U.S. Code § 674 - Power to control beneficial enjoyment
The grantor shall be treated as the owner of any portion of a trust in respect of which the beneficial enjoyment of the corpus or the income therefrom is subject to a power of disposition, exercisable by the grantor or a nonadverse party, or both, without the approval or consent of any adverse party.
A power described in section 677(b) to the extent that the grantor would not be subject to tax under that section.
A power, the exercise of which can only affect the beneficial enjoyment of the income for a period commencing after the occurrence of an event such that a grantor would not be treated as the owner under section 673 if the power were a reversionary interest; but the grantor may be treated as the owner after the occurrence of the event unless the power is relinquished.
A power exercisable only by will, other than a power in the grantor to appoint by will the income of the trust where the income is accumulated for such disposition by the grantor or may be so accumulated in the discretion of the grantor or a nonadverse party, or both, without the approval or consent of any adverse party.
A power to determine the beneficial enjoyment of the corpus or the income therefrom if the corpus or income is irrevocably payable for a purpose specified in section 170(c) (relating to definition of charitable contributions) or to an employee stock ownership plan (as defined in section 4975(e)(7)) in a qualified gratuitous transfer (as defined in section 664(g)(1)).
Subsection (a) shall not apply to a power solely exercisable (without the approval or consent of any other person) by a trustee or trustees, none of whom is the grantor or spouse living with the grantor, to distribute, apportion, or accumulate income to or for a beneficiary or beneficiaries, or to, for, or within a class of beneficiaries, whether or not the conditions of paragraph (6) or (7) of subsection (b) are satisfied, if such power is limited by a reasonably definite external standard which is set forth in the trust instrument. A power does not fall within the powers described in this subsection if any person has a power to add to the beneficiary or beneficiaries or to a class of beneficiaries designated to receive the income or corpus except where such action is to provide for after-born or after-adopted children.
1997—Subsec. (b)(4). Pub. L. 105–34 inserted before period “or to an employee stock ownership plan (as defined in section 4975(e)(7)) in a qualified gratuitous transfer (as defined in section 664(g)(1))”.
1988—Subsec. (c). Pub. L. 100–647 inserted at end “For periods during which an individual is the spouse of the grantor (within the meaning of section 672(e)(2)), any reference in this subsection to the grantor shall be treated as including a reference to such individual.”
1986—Subsec. (b)(2). Pub. L. 99–514 substituted “occurrence of event” for “expiration of 10-year period” in heading and in text substituted “the occurrence of an event” for “the expiration of a period” and “the occurrence of the event” for “the expiration of the period”.
Amendment by Pub. L. 105–34 applicable to transfers made by trusts to, or for the use of, an employee stock ownership plan after Aug. 5, 1997, see section 1530(d) of Pub. L. 105–34, set out as a note under section 401 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.
Amendment by Pub. L. 99–514 applicable with respect to transfers in trust made after Mar. 1, 1986, except for transfers pursuant to a certain binding property settlement agreement, see section 1402(c) of Pub. L. 99–514, set out as a note under section 673 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.
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- Income for Benefit of Grantor : 2015-02-13
- Administrative Powers : 2015-02-13
- Trust Income, Deductions, and Credits Attributable to Grantors and OthersAs Substantial Owners : 2015-02-13
- Power to Control Beneficial Enjoyment : 2015-02-13
- Transfers in General Gift v. Not a Gift : 2015-02-13
- Persons Treated as Grantors : 2013-06-28
- Income for Benefit of Grantor : 2013-06-28
- Power Exercisable Only by Will : 2013-06-28
- Persons Treated as Grantors : 2008-12-26
- Income for Benefit of Grantor : 2008-12-26
- Administrative Powers : 2008-12-26
- Power to Control Beneficial Enjoyment : 2008-12-26
- Qualified Terminable Interest Property : 2008-08-08
- Charitable Remainder Unitrust : 2008-08-08
- Special Rule for Charitable Remainder Trusts : 2008-08-08
- Exception for Independent Trustees : 2008-08-08
- Power to Control Beneficial Enjoyment : 2008-03-28
- Charitable Remainder Unitrust : 2008-03-28
- Excise Taxes on Excess Business Holdings : 2007-11-23
- Power to Control Beneficial Enjoyment : 2007-11-23
- Cessation of Donor's Dominion and Control : 2007-11-23
- Property Placed in Trust : 2007-11-23
- Charitable Lead Trusts : 2007-11-23
- Trust Income, Deductions, and Credits Attributable to Grantors and OthersAs Substantial Owners : 2007-08-17
- Power to Control Beneficial Enjoyment : 2007-08-17
- General Powers of Administration : 2007-08-17
- Separate Share Rule : 2007-08-17
- Special Rules For Pass-Through Entities : 2007-08-17
- Treatment of Distributions and Stock Dispositions : 2007-08-17
- Attribution to U.S. Persons : 2007-08-17
- Power to Control Beneficial Enjoyment : 2007-07-27
- 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
- Party Required to File : 2004-11-05
- Income Distributed to Grantor or Spouse : 2004-11-05
- Persons Treated as Grantors : 2000-05-12
- General Powers of Administration : 2000-05-12
- Discharge of Obligation of Grantor or Spouse : 2000-05-12
- Power to Revoke : 2000-05-12
- Value of Reversionary Interests : 2000-05-12
- Powers to Distribute Corpus : 2000-05-12
- Cash Basis : 2000-05-12
- Property Held in Trust : 2000-05-12
- Irrevocable Trusts : 2000-02-11
- Power to Change Beneficiaries or Their Shares : 2000-02-11
- Exception for Independent Trustees : 2000-02-11
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