---
title: "Family group map before a distribution from a trust that has made a family trust election"
url: "https://ailawframework.com/precedents/trusts-and-estate-planning/family-group-before-distribution"
type: "precedent"
site: "AI Law Framework"
id: "a19-family-group-before-distribution"
area_id: "A19"
kind: "checklist"
ai_level: "yellow"
version: 1
task_ids: ["A19-X20260927-5"]
law_stated_as_at: "2026-10-22"
---

# Family group map before a distribution from a trust that has made a family trust election

> Map of who the ATO page, updated 20 October 2026, treats as in the family group of the individual specified in a family trust election, before a distribution is made outside the usual beneficiaries.

Canonical page: https://ailawframework.com/precedents/trusts-and-estate-planning/family-group-before-distribution  
Law stated as at: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

- Kind: Checklist. Steps or checks to work through and tick off.
- Practice area: [Trusts & Estate Planning](https://ailawframework.com/precedents/trusts-and-estate-planning.md)
- Jurisdictions: Australia, Commonwealth
- AI level: Yellow. You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at: 2026-10-22
- Status: Maintained. Checked on 2026-10-22 against the authority it cites, for Australia and Commonwealth.

## When to use it

Use when a trustee is considering a distribution to a person or company that is not one of the usual beneficiaries, and a family trust election is or may be in force. Family trust distribution tax is imposed outside the family group. The ATO says it has no discretion to ignore that tax.

## Used for these tasks

- [Map the family group before a distribution outside the usual beneficiaries](https://ailawframework.com/practice/trusts-and-estate-planning/map-the-family-group-before-a-distribution-outside-the-usual-beneficiari.md)

## How AI may be used

AI may list proposed recipients and the relationship recorded on the file. The lawyer decides whether each recipient is in the family group.

**AI may:**

- Enter each proposed recipient and the relationship the file states
- Flag a company or partnership that has no interposed entity election on the file
- Flag a recipient described as an aunt, uncle or cousin

**AI must not:**

- Must not state that a person is in the family group
- Must not state that family trust distribution tax will or will not apply
- Must not prepare the distribution resolution

**The lawyer checks:**

- The election and the specified individual are identified before anyone is classified
- Family and family group are not treated as the same list. A former spouse can be in the group and not in the family
- A company is not placed in the group only because a family member owns some of the shares
- Schedule 2F is read before the map is relied on. The schedule was not opened. The map uses the ATO page

## Authorities

- [ATO, Family trusts, last updated 20 October 2026 (family group of the individual specified in the election; family of that individual; distribution includes more than a trust distribution; no discretion to ignore family trust distribution tax)](https://www.ato.gov.au/businesses-and-organisations/trusts/family-trusts)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/trusts-and-estate-planning/family-group-before-distribution and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*