(a) Where any part of the income of a trust:(1) Is or, at the discretion of the grantor or in any person not having a substantial adverse interest in the disposition of such portion of the income, may be held or accumulated for future distribution to the grantor; or(2) may, at the discretion of the grantor or of any person not having a substantial adverse interest in the disposition of such portion of the income, be distributed to the grantor, or(3) is, or at the discretion of the grantor or any person not having a substantial adverse interest in the disposition of such portion of the income may be, applied to the payment of premiums for insurance policies on the life of the grantor, except insurance policies irrevocably payable for the purposes and in the manner specified in § 30135(a)(3) of this title, related to the deduction for charitable contributions, then such portion of the income of the trust shall be included when computing the net income of the grantor.(b) As used in this section, the term 'at the discretion of the grantor' means at the discretion of the grantor, either alone or together with any person not having a substantial adverse interest in the disposition of

s section, the term 'at the discretion of the grantor' means at the discretion of the grantor, either alone or together with any person not having a substantial adverse interest in the disposition of the portion of the income in question.(c) The income of a trust shall not be considered taxable to the grantor under subsection (a) or under any other provision of this subtitle merely because such income, at the discretion of another person, the trustee, or the grantor acting as trustee or co-trustee, may be applied or distributed for the support or maintenance of a beneficiary whom the grantor is legally obligated to support or maintain, except to the extent that such income is so applied or distributed. In cases where the amounts so applied or distributed are paid out of the corpus or out of sources other than income for the taxable year, such amounts shall be considered paid out of income to the extent of the income of the trust for such taxable year which is not paid, credited, or to be distributed under § 30411 of this title and which is not otherwise taxable to the grantor. History —Jan. 31, 2011, No. 1, § 1083.06, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 104.