Family Trust: Variation Of Test Individual

Q&A

Question :

Helen is the ‘test individual’ of the Wong Family Trust. She wishes to make her husband, John the test individual from 2018/19 income year.  

Please advise her the conditions for this variation. 

 

Answer :

The specified individual can be varied once, but only once, subject to certain conditions, including that both: 

The new specified individual was a member of the family of the original specified individual at the election commencement time 

There have been no conferrals of present entitlement, or distributions of income or capital, by the trustee of the family trust or an entity that made an IEE in relation to the trust to parties outside the new specified individual’s family group during the period in which the election has been in force.  

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