§676 — Power to revoke

23 cases·2 followed·21 cited9% support

(a)General rule

The grantor shall be treated as the owner of any portion of a trust, whether or not he is treated as such owner under any other provision of this part, where at any time the power to revest in the grantor title to such portion is exercisable by the grantor or a non-adverse party, or both.

(b)Power affecting beneficial enjoyment only after occurrence of event

Subsection (a) shall not apply to 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 such event unless the power is relinquished.

23 Citing Cases

income are vested in the grantor or certain other persons, gee sec. 674; (3) certain administrative powers are exercisable by the grantor or a nonadverse party,18 gee sec. 675; (4) the trust can be revoked by the grantor or a nonadverse party, see sec. 676; or (5) trust income can be distributed to the grantor or the grantor's spouse or be used to pay for insurance on their lives without the consent ofan adverse party, me sec. 677. IV. Winch Road Property Income We examine Lost Creek Trust usin

F. Jeffrey Rahall, Petitioner T.C. Memo. 2011-101 · 2011

Third, trust income can be distributed to the grantor or the grantor's spouse or be - 17 - used to pay for insurance on their lives without the consent of an adverse party. Sec. 677. Fourth, specified powers to control beneficial enjoyment of the corpus or income are "vested in the grantor or certain other persons. Sec. 674. Fifth, certa

F. Jeffrey Rahall, Petitioner T.C. Memo. 2011-101 · 2011

Third, trust income can be distributed to the grantor or the grantor's spouse or be - 17 - used to pay for insurance on their lives without the consent of an adverse party. Sec. 677. Fourth, specified powers to control beneficial enjoyment of the corpus or income are vested in the grantor or certain other persons . Sec . 674 . Fifth, cer

OMK Family Trust, Petitioner T.C. Memo. 2004-281 · 2004

Third, trust income can be distributed to the grantor or the grantor’s spouse or be used to pay for insurance on their lives without the consent of an adverse party. Sec. 677. Fourth, specified powers - 25 - to control beneficial enjoyment of the corpus or income are vested in the grantor or certain other persons. Sec. 674. Fifth, certai

OMK Company Trust, Petitioner T.C. Memo. 2004-281 · 2004

Third, trust income can be distributed to the grantor or the grantor’s spouse or be used to pay for insurance on their lives without the consent of an adverse party. Sec. 677. Fourth, specified powers - 25 - to control beneficial enjoyment of the corpus or income are vested in the grantor or certain other persons. Sec. 674. Fifth, certai

Orneal & Martha Kooyers, Petitioner T.C. Memo. 2004-281 · 2004

Third, trust income can be distributed to the grantor or the grantor’s spouse or be used to pay for insurance on their lives without the consent of an adverse party. Sec. 677. Fourth, specified powers - 25 - to control beneficial enjoyment of the corpus or income are vested in the grantor or certain other persons. Sec. 674. Fifth, certai

s outstanding stock consisted 2Arbeit’s sole purpose was to act as a nominee for petitioners, as trustee of the Gerald Rauenhorst Revocable Trust. This trust was a revocable grantor trust, and its assets were treated as owned by Mr. Rauenhorst under sec. 676. - 4 - of 2,400 shares of class A common stock and 660 shares of series B preferred stock that were convertible share for share into NMG common stock. NMG’s stock was owned as follows: Common Stock Shares of Ownership Shares of Shareholder C

Rauenhorst v. Commissioner 119 T.C. 157 · 2002

les of Practice and Procedure. Arbeit’s sole purpose was to act as a nominee for petitioners, as trustee of the Gerald Rauenhorst Revocable Trust. This trust was a revocable grantor trust, and its assets were treated as owned by Mr. Rauenhorst under sec. 676. The parties agree that this case is appealable to the Court of Appeals for the Eleventh Circuit. Binding precedent in the Eleventh Circuit includes decisions of the Court of Appeals for the Fifth Circuit filed before Oct. 1, 1981. Shepherd

or trust provisions are independent of those imposed by the others, the grantor can avoid taxation only if (1) he does not possess a disqualifying reversionary interest, sec. 673, (2) the trust cannot be revoked by the grantor or a nonadverse party, sec. 676, (3) trust income cannot be distributed to the grantor or the grantor’s spouse or be used to pay for insurance on their lives without the consent of an adverse party, sec. 677, (4) specified powers to control - 27 - beneficial enjoyment of t

James D. & Rita K. Snyder, Petitioner T.C. Memo. 2001-255 · 2001

r trust provisions are independent of those imposed by the others, the grantor can avoid taxation only if (1) he does not possess a disqualifying reversionary interest (sec. 673), (2) the trust cannot be revoked by the grantor or a nonadverse party (sec. 676), (3) trust income cannot be distributed to the grantor or the grantor’s spouse or used to pay for insurance on their lives without the consent of an adverse party (sec. 677), (4) specified powers to control beneficial enjoyment of the corpu

or trust provisions are independent of those imposed by the others, the grantor can avoid taxation only if (1) he does not possess a disqualifying reversionary interest, sec. 673, (2) the trust cannot be revoked by the grantor or a nonadverse party, sec. 676, (3) trust income cannot be distributed to the grantor or the grantor’s spouse or be used to pay for insurance on their lives without the consent of an adverse party, sec. 677, (4) specified powers to control - 27 - beneficial enjoyment of t

or trust provisions are independent of those imposed by the others, the grantor can avoid taxation only if (1) he does not possess a disqualifying reversionary interest, sec. 673, (2) the trust cannot be revoked by the grantor or a nonadverse party, sec. 676, (3) trust income cannot be distributed to the grantor or the grantor’s spouse or be used to pay for insurance on their lives without the consent of an adverse party, sec. 677, (4) specified powers to control - 27 - beneficial enjoyment of t

or trust provisions are independent of those imposed by the others, the grantor can avoid taxation only if (1) he does not possess a disqualifying reversionary interest, sec. 673; (2) the trust cannot be revoked by the grantor or a nonadverse party, sec. 676; (3) trust income cannot be distributed to the grantor or the grantor’s spouse or be used to pay for insurance on their lives without the consent of an adverse party, sec. 677; (4) specified powers to control beneficial enjoyment of the corp

Curtis E. & April L. Shirley, Petitioner T.C. Memo. 2001-241 · 2001

or trust provisions are independent of those imposed by the others, the grantor can avoid taxation only if (1) he does not possess a disqualifying reversionary interest, sec. 673, (2) the trust cannot be revoked by the grantor or a nonadverse party, sec. 676, (3) trust income cannot be distributed to the grantor or the grantor’s spouse or be used to pay for insurance on their lives without the consent of an adverse party, sec. 677, (4) specified powers to control - 27 - beneficial enjoyment of t

Wesenberg v. Commissioner 69 T.C. 1005 · 1978
Paxton v. Commissioner 57 T.C. 627 · 1972
Estate of Jalkut v. Commissioner 96 T.C. 675 · 1991
Benson v. Commissioner 76 T.C. 1040 · 1981
Lerner v. Commissioner 71 T.C. 290 · 1978
Scheft v. Commissioner 59 T.C. 428 · 1972
Makransky v. Commissioner 36 T.C. 446 · 1961
de Amodio v. Commissioner 34 T.C. 894 · 1960