Adverse Party
Adverse Party
Definition: Any person having a substantial beneficial interest in the trust that would be adversely affected by the exercise/non-exercise of their power with respect to the trust. A person having a power of appointment over trust property is deemed to have a beneficial interest in the trust. A related party to the grantor, such as the grantor's spouse, is generally considered to be subservient to the grantor, and therefore a nonadverse party. Irc § 672(c).
Definition: Any person having a substantial beneficial interest in the trust that would be adversely affected by the exercise/non-exercise of their power with respect to the trust. A person having a power of appointment over trust property is deemed to have a beneficial interest in the trust. A related party to the grantor, such as the grantor's spouse, is generally considered to be subservient to the grantor, and therefore a nonadverse party. Irc § 672(c).