Question

A grantor is deemed to be the owner of the trust for estate tax purposes if:

I. The grantor has a reversionary interest in the corpus or income of the trust

II. The grantor has power to revoke a portion of the trust.

III. The trust is created inter vivos.

IV. The trust names more than one beneficiary

Group of answer choices

I & II only

I only

II & III only

II, III, & IV only

Answer 1

The correct option is I & II only

As per IRC 673 , the grantor retains reversionary interest in the asset.

As per IRC 676, the grantor will be treated as the owner of the asset if it has the power to revoke any part of a trust and reclaim the trust asset.