California Code of Regulations
Title 18 - Public Revenues
Division 2.5 - State Controller
Chapter 1 - Inheritance Tax
Article 4.2 - Inter Vivos Transfers
Section 13646 - Transfer with Reservation of Power to Revoke or Control

An inter vivos transfer conforming to Revenue and Taxation Code Section 13641, whether in trust or otherwise, subject to a power reserved in the transferor to revoke, terminate, alter, amend, revise, or change the interest of the beneficiary, constitutes a transfer intended to take effect in possession or enjoyment at or after the death of the transferor, and is subject to the Inheritance Tax Law.

A transfer in trust of intangible personal property located outside this State by a nonresident trustor to a nonresident trustee for the benefit of a third person, with a power reserved in the trustor to revoke, terminate, alter, amend, revise, or change the interest of the beneficiary, is subject to the Inheritance Tax Law if the trustor subsequently dies a resident of California without having terminated, relinquished, or surrendered the power; or subsequently becomes a resident of California and then terminates, relinquishes, or surrenders the power in contemplation of death.

A power to revoke, terminate, alter, amend, revise, or change the interest of a beneficiary includes a power exercisable either by the transferor alone or by the transferor and any other person not having a substantial adverse interest in the property transferred.

NOTE: Reference: Section 13646, Revenue and Taxation Code.