is this really an irrevocable trust for tax purposes.
Under IRC Section 674(a), the grantor is the owner of any portion of a trust in respect of which the beneficial enjoyment of the corpus or income 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. “Adverse party” refers to any person with a substantial beneficial interest in a trust that would be adversely affected by the exercise or nonexercise of a power (IRC Section 672(a)).
thus if he has full power of disposition of corpus or certain other powers, for tax purposes the trust is treated as a grantor trust. this is crucial because it determines what form of 1041 to file and how and to whom the income is taxed. just because a trust is titled irrevocable and you are the trustee doesn't mean it treated as a non-grantor trust for tax purposes.
