Family Trust Election vs Interposed Entity Election: Which Should You Choose?

Learn how to choose between Family Trust Election and Interposed Entity Election and understand key tax implications.

In this session, we cover:

• Why make family trust election?

  • Simplify trust loss compliance, enable subsidiary company to satisfy COT, pass franking credits to beneficiaries and apply small business restructure rollover relief

• Making a valid family trust election

  • Must be in approved form and satisfying family control test 

• Who are members of elected family group?

• Why make an interposed entity election?

  • Family member(s) do not have fixed entitlements in entity 

  • Must make IEE to be party of family group   

  • Separate rules for trusts, companies and partnerships