Grantor trusts are addressed in Sections 671-678:
A grantor trust is any trust in which the grantor retains one or more of the following powers:
- A reversionary interest of more than 5% of the trust property or income;
- The power to revoke the trust and/or to return the trust’s corpus/principle to the grantor;
- The power to distribute income to the grantor or grantor’s spouse;
- Power over the beneficial interests in the trust;
- Administrative powers over the trust allowing the grantor to benefit.
A trust is also a grantor trust under either of the following circumstances:
- A trustee, beneficiary, or other person a power exercisable solely by himself to vest the corpus or the income therefrom in himself;
- A United States person who directly or indirectly transfers property to a foreign trust.
