### Question
Can you define what adverse party means?


### Answer
**Adverse party** is defined as the following in *26 U.S.C. § 672*:

> any person having a substantial beneficial interest in the trust which would be adversely affected by the exercise or nonexercise of the power which he possesses respecting the trust

#### Citation:
  - *26 U.S.C. § 672*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter J-Estates, Trusts, Beneficiaries, and Decedents > PART I-ESTATES, TRUSTS, AND BENEFICIARIES > Subpart E-Grantors and Others Treated as Substantial Owners**

