Document ID: chunk:federal_register_of_legislation:C2025C00014:section:102aah:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 102AAH (pt 2/3)
Character Range: 723081–725732

by name in the trust deed or instrument, or in the court order or declaration, constituting the trust; and
 (ii) are non‑residents at that time; and
 (iii) are covered by any of the following categories:
 (A) the spouse or former spouse of the natural person;
 (B) a parent of the natural person or of the natural person's spouse or former spouse;
 (C) a child of the natural person or of the natural person's spouse or former spouse;
 (D) a grandparent of the natural person;
 (E) a grandchild of the natural person;
 (F) a brother or sister of the natural person or of the natural person's spouse or former spouse;
 (G) a child of a brother or sister mentioned in sub‑subparagraph (F); and
 (b) the trust was established, and is operated, for the relief of persons who are in necessitous circumstances; and
 (c) any of the following conditions is satisfied:
 (i) at the test time, the assets of the trust are not excessive having regard to the requirements, or likely requirements, of the primary potential beneficiaries;
 (ii) no transfers of property or services to the trust estate were made during the period (in this paragraph called the test period) commencing at the IP time and ending at the test time;
 (iii) immediately after each transfer of property or services to the trust estate made during the test period, the assets of the trust were not excessive having regard to the requirements, or likely requirements, of the beneficiaries at the time of the transfer.
Note: Section 960‑255 of the Income Tax Assessment Act 1997 may be relevant to determining relationships for the purposes of subparagraph (3)(a)(iii).
 (4) Subsection (1) does not prevent a trust estate from being a non‑resident family trust in relation to a natural person at a particular time if, in the event of the death of a particular primary potential beneficiary at that time, one or more natural persons (which persons are in subsection (5) called the secondary potential beneficiaries) who:
 (a) are non‑residents at that time; and
 (b) are children of the primary potential beneficiary;
would benefit, or be capable (whether by the exercise of a power of appointment or otherwise) of benefiting, under the trust.
 (5) Subsections (1) and (4) do not prevent a trust estate from being a non‑resident family trust in relation to a natural person at a particular time if, in the event of the death of all of the primary potential beneficiaries and all of the secondary potential beneficiaries at that time, there are one or more deductible gift recipients covered by an item in any of the tables in Subdivision 30‑B of the Income Tax Assessment Act 1997, or item 2 of