Practitioners generally don't rely solely on the power of substitution to make a trust a grantor trust under IRC 675(4) due to the factual nature of the inquiry as to whether such power is exercisable in a nonfiduciary capacity. In addition, there's concern that a grantor's power to substitute property of a trust may cause the trust property to be includible in a grantor's estate under IRC Sections 2036 or 2038. In Revenue Ruling 2008-22, 2008-16 I.R.B. 796 (April 17, 2008), the IRS resolved
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