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Conditions for varying a family trust election

Find out what the conditions are for varying a family trust election.

Published 30 June 2024

The specified individual in a family trust election can be varied where:

  • the new individual was a member of the family of the original specified individual at the election commencement time
  • no conferrals of present entitlement to, and distributions of, income or capital have been made (by the trust or an interposed entity) outside the new specified individual’s family group during the period in which the family trust election has been in force, and
  • the trust meets the related conditions in subsections 272-80(5A), (5B), (6B) and (8) of Schedule 2F to the ITAA 1936 which includes specific time periods during which the specified individual in a family trust election can be varied.

In addition to this, subsections 272-80(5C) and (5D) of Schedule 2F to the ITAA 1936 contain the conditions under which the specified individual can be varied if, as a result of a family law obligation arising from a marriage breakdown, the control of the trust passes to a new specified individual or their family members.

Continue to: Conditions for revoking a family trust election

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