An “affiliated person” can be:
- a majority-interest beneficiary of the trust;
- another trust, if a contributor to the other trust is affiliated with a contributor to the trust and a majority-interest beneficiary of one trust is affiliated:
- with a majority-interest beneficiary of the other trust, or
- with each member of a majority-interest group of beneficiaries of the other trust;
- a corporation controlled, directly or indirectly, in any manner whatever, by the trust or by an affiliated group of persons of which the trust is a member;
- a partnership of which the trust is a majority-interest partner.
In a broader context, a person is considered to be affiliated with:
- his or her spouse;
- a corporation controlled, directly or indirectly, in any manner whatever, by:
- the person,
- the person's spouse,
- an affiliated group of persons of which the person or person's spouse (if applicable) is a member;
- a partnership of which the person is a majority-interest partner;
- a trust of which the person is a majority-interest beneficiary.
- For the application of the rules for affiliated persons, a partnership is considered to be a person.
- An affiliated group of persons is a group of which each member is affiliated with every other member.