21 September 2018
Family trust election - Family control test
Is there any restriction on a family trust deed expressly allowing a person classified as 'friend' to be a beneficiary?
Thank you for the question.
To be eligible to make a family trust election the trust must satisfy the requirements of the family control test on the ATO website. The trust must specify a ‘primary’ or ‘test’ individual and demonstrate that it is controlled by and only makes distributions to the primary individual, the primary individual’s family group, the legal personal representative of the primary individual or a family group member.
The family of the individual specified in the relevant election consists of that person, the test individual, and any of the following people - if applicable:
No friends allowed.
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