§676 — Title 26 Internal Revenue Code | U.S. Code

§676 Power to revoke

Title 26 › Subtitle Subtitle A— - Income Taxes › Chapter CHAPTER 1— - NORMAL TAXES AND SURTAXES › Subchapter Subchapter J— - Estates, Trusts, Beneficiaries, and Decedents › Part PART I— - ESTATES, TRUSTS, AND BENEFICIARIES › Subpart Subpart E— - Grantors and Others Treated as Substantial Owners › § 676

Last updated Apr 6, 2026|Official source

Summary

A person who creates a trust is treated as the owner of any part of it if they, or someone who is not opposed to them, can take back title to that part at any time. If the only power is to change who gets income later and section 673 would not call the creator an owner in that situation, the ownership rule waits until the event happens; after the event the creator may be treated as the owner unless they give up the power.

Title 26, §676

Internal Revenue Code — Source: USLM XML via OLRC

(a)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)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.

Notes & Related Subsidiaries

Editorial Notes

Amendments

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 such event” for “the expiration of such period”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1986 AmendmentAmendment 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.