CH. 1—NORMAL TAXES AND SURTAXES
229
designated to receive the income or corpus except where such action is to provide for after-born or after-adopted children. (7) P O W E R
TO WITHHOLD
INCOME
DURING
DISABILITY
OP
A
BENEFICIARY.—A powcr exercisable only during— (A) the existence of a legal disability of any current income beneficiary, or (B) the period during which any income beneficiary shall be under the age of 21 years, to distribute or apply income to or for such beneficiary or to accumulate and add the income to corpus. A power does not fall within the powers described in this paragraph if any person has a power to add to the beneficiary or beneficiaries 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. (8) P O W E R
TO ALLOCATE BETWEEN
CORPUS AND INCOME.—A
power to allocate receipts and disbursements as between corpus and income, even though expressed in broad language. (c) EXCEPTION
FOR CERTAIN
POWERS OF INDEPENDENT
TRUS-
TEES.—Subsection (a) shall not apply to a power solely exercisable (without the approval or consent of any other person) by a trustee or trustees, none of whom is the grantor, and no more than half of whom are related or subordinate parties who are subservient to the wishes of the grantor— (1) to distribute, apportion, or accumulate income to or for a beneficiary or beneficiaries, or to, for, or within a class of beneficiaries; or (2) to pay out corpus to or for a beneficiary or beneficiaries or to or for a class of beneficiaries (whether or not income beneficiaries). A power does not fall within the powers described in this subsection if any person has a power to add to the beneficiary or beneficiaries 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. (d) P O W E R TO ALLOCATE INCOME I F LIMITED BY A STANDARD.—
Subsection (a) shall not apply to a power solely exercisable (without the approval or consent of any other person) by a trustee or trustees, none of whom is the grantor or spouse living with the grantor, to distribute, apportion, or accumulate income to or for a beneficiary or beneficiaries, or to, for, or within a class of beneficiaries, whether or not the conditions of paragraph (6) or (7) of subsection (b) are satisfied, if such power is limited by a reasonably definite external standard which is set forth in the trust instrument, A power does not fall within the powers described in this subsection if any person has a power to add to the beneficiary or beneficiaries 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. SEC. 675. ADMINISTRATIVE POWERS. The grantor shall be treated as the owner of any portion of a trust in respect of which— (1) P O W E R TO DEAL FOR LESS THAN ADEQUATE AND FULL CON-
SIDERATION.—A power exercisable by the grantor or a nonadverse § 675(1)
�
