### Question
How is the "related or subordinate party" defined?


### Answer
The term **related or subordinate party** is defined in *26 U.S.C. § 672* as follows -

> any nonadverse party who is—


(1) the grantor's spouse if living with the grantor

#### 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**

