Question

Which of the follwing is not considered a power to distribute income to or for the benefit of grantor under IRC 677?

A. A distribution may be made by a nonadverse party to the grantor 's spouse.

B. A possibility exists that the grantor might receive an interest back as a surviving spouseunder a statutory right of election.

C. A power is exercisable by the grantor's spouse to accumulate income for the benefit of the grantor

D. A power is exercisable by the grantor to apply the income of the trust to pay premiums on a second to die policy covering the grantor and his/her spouse.

Answer 1

Answer:-

Explanation:-

• The grantor - if property exchanged preceding October 10,1969 are stripped forever and totally of each intrigue .The grantor isn't treated as a proprietor under segment 677 after that stripping .
• "Intrigue" is utilized in passage does exclude the likelihood that the grantor or his mate may get once again from a recipient an enthusiasm for a trust by legacy.
• Before October 10,1969, "interest"does exclude the likelihood that the grantor may get once again from a recipient an enthusiasm for a trust as a surviving mate under a statutory right of decision or a comparable right.

So, the answer is B .