In Paper 012-048 there is a summary of the rules which apply to Discretionary Trusts being deemed to be Family Trusts.
In this paper, there is a check list which will assist business people to determine whether the Discretionary Trust being operated in their business can be, or should be, deemed to be a Family Trust.
The paper is presented with commentary under the following headings:
- Name Of Discretionary Trust
- Losses
- Bad Debts
- Investment In Companies Declaring Franked Dividends?
- More Than 50% Shareholding In A Company
- Tax Losses
- History Of Trust Distributions
- Distribution To Entities
- Test Individual
- Defined Relatives Of Test Individual
- Defined Relatives Of Test Individual’s Spouse
- Entities To Whom Distributions Have Been Made
- Income Injection Test
- Family Control Test
- Family Trust Summary
- Family Trust Election
- Trustees’ Meeting
- Comments On Check List
