The section you want to look at is Code section 678 ("Person
> other than grantor treated as substantial owner"). Under
> that section, the trust is treated as a grantor trust if the
> a person other than the grantor has the power to vest the
> trust property in himself. This is why (well, one of the
> reasons why) the power of appointment given to the husband
> only permits him to appoint the trust property to his
> descendants, and not to himself or to his creditors.
Yet were it not for the ascertainable standard governing distributions by the trustee, the trust would clearly be deemed to be owned by the husband under Section 678.
>
>
>
>
>
>
>
>
>