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TITLE 26-INTERNAL REVENUE CODE sion or enjoyment within 10 years commencing with the date of the transfer of that portion of the trust. [(b) Repealed. Pub. L. 91-172, title II, § 201(c), Dec. 30, 1969, 83 Stat. 560] (c) Reversionary interest taking effect at death of income beneficiary The grantor shall not be treated under sub- section (a) as the owner of any portion of a trust where his reversionary interest in such portion is not to take effect in possession or en- joyment until the death of the person or per- sons to whom the income therefrom is payable. (d) Postponement of date specified for reacquisition Any postponement of the date specified for the reacquisition of possession or enjoyment of the reversionary interest shall be treated as a new transfer in trust commencing with the date on which the postponement is effected and ter- minating with the date prescribed by the post- ponement. However, income for any period shall not be included in the income of the gran- tor by reason of the preceding sentence if such income would not be so includible in the ab- sence of such postponement. (Aug. 16, 1954, ch. 736, 68A Stat. 227; Dec. 30, 1969, Pub. L. 91-172, title II, § 201(c), 83 Stat. 560.) AMENDmENTs 1969-Subsec. (b). Pub. L. 91-172 struck out provi- sions relating to trusts where the income was payable to a charitable beneficiary for at least a two-year period. EFFEcTIVE DATE OF 1969 AMENDMNT Repeal of subsec. (b) of this section applicable to transfers in trust made after April 22, 1969, see section 201(g) of Pub. L. 91-172, set out as an Effective Date of 1969 Amendment note under section 170 of this title. SECTION RERIUM, TO IN OTHEn SECTIONS This section is referred to in sections 674, 676, 677, 678 of this title. § 674. Power to control beneficial enjoyment (a) General rule The grantor shall be treated as the owner of any portion of a trust in respect of which the beneficial enjoyment of the corpus or the income therefrom is subject to a power of dis- position, exercisable by the grantor or a nonad- verse party, or both, without the approval or consent of any adverse party. (b) Exceptions for certain powers Subsection (a) shall not apply to the follow- ing powers regardless of by whom held: (1) Power to apply income to support of a depen- dent A power described in section 677(b) to the extent that the grantor would not be subject to tax under that section. (2) Power affecting beneficial enjoyment only after expiration of 10-year period A power, the exercise of which can only affect the beneficial enjoyment of the income for a period commencing after the expiration of a period such that a grantor would not be treated as the owner under section 673 if the power were a reversionary interest; but the grantor may be treated as the owner after the expiration of the period unless the power is relinquished. (3) Power exercisable only by will A power exercisable only by will, other than a power in the grantor to. appoint by will the income of the trust where the income is accu- mulated for such disposition by the grantor or may be so accumulated in the discretion of the grantor or a nonadverse party, or both, without the approval or consent of any ad- verse party. (4) Power to allocate among charitable beneficia. ries A power to determine the beneficial enjoy- ment of the corpus or the income therefrom if the corpus or income is irrevocably payable for a purpose specified in section 170(c) (re- lating to definition of charitable contribu- tions). (5) Power to distribute corpus A power to distribute corpus either- (A) to or for a beneficiary or beneficiaries or to or for a class of beneficiaries (whether or not income beneficiaries) provided that the power is limited by a reasonably defi- nite standard which is set forth in the trust instrument; or (B) to or for any current income benefi- ciary, provided that the distribution of corpus must be chargeable against the pro- portionate share of corpus held in trust for the payment of income to the beneficiary as if the corpus constituted a separate trust. A power does not fall within the powers de- scribed in this paragraph if any person has a power to add to the beneficiary or beneficia- ries or to a class of beneficiaries designated to receive the income or corpus, except where such action is to provide for after-born or after-adopted children. (6) Power to withhold income temporarily A power to distribute or apply income to or for any current income beneficiary or to accu- mulate the income for him, provided that any accumulated income must ultimately be pay- able- (A) to the beneficiary from whom distri- bution or application is withheld, to his estate, or to his appointees (or persons named as alternate takers in default of ap- pointment) provided that such beneficiary possesses a power of appointment which does not exclude from the class of possible appointees any person other than the bene- ficiary, his estate, his creditors, or the credi- tors of his estate, or (B) on termination of the trust, or in con- junction with a distribution of corpus which is augmented by such accumulated income, to the current income beneficiaries in shares which have been irrevocably speci- fied in the trust instrument. Accumulated income shall be considered so payable although it is provided that if any beneficiary does not survive a date of distri- bution which could reasonably have been ex- pected to occur within the beneficiary's life- time, the share of the deceased beneficiary is § 674 Page 474