Keeping assets in the family excluding your children’s partners!
In this November 2025 Legalwise edition of “What you Need to Know with Dr Mark”, Dr Mark Pizzacalla discusses the great family predicament of giving assets to your children but not their partners. What are some of things you can do and what do you need to watch out for? When you add the complexity of using family trusts in the ‘mix’ some serious chaos can ensue! Mark discusses the implications you should be aware of. Watch here in under 3 minutes!
Dr Mark Pizzacalla is a Senior Partner of global accounting firm, BDO. Mark is a recognised industry leader, and expert commentator and presenter on business and tax issues, having contributed significant tax commentary through media and publications, including Lateline Business, The Australian Financial Review and The Tax Institute Journal.
Mark has over 30 years of tax experience, including being appointed by the Federal Government to Australia’s Board of Taxation. Mark’s business experience, including as Director for various companies, gives him strong insights into both the strategic and operational business issues facing his clients. Mark’s specialisations include:
- Taxation audits, rulings & litigation
- Business advisory
- Structuring for acquisitions & disposals
- Corporate tax governance and risk management
- Inbound & outbound investments
- Succession planning
Mark completed his PhD in relation to the taxation of small businesses in Australia and is one of the few tax practitioners whose work has been cited in Australia’s Parliament. A number of Mark’s SME tax policy recommendations have been adopted by the Federal Government.
Should you wish to contact Dr Mark, he is available on email mark.pizzacalla@bdo.com.au or mobile 0413048440.
Transcript:
What You Need to Know with Dr Mark – November 2025 Edition
In this episode, Dr Mark Pizzacalla examines disputes that arise when parents give or lend money to their children. He highlights a recent NSW case where a partner claimed funds were a gift, not a loan, showing why lending arrangements must be documented, set at market rates, and supported by repayments to avoid being reclassified.
Dr Mark also links this to current issues with family trust distributions, noting the risks of distributing to a child’s partner. If they’re not part of the ‘family group’, distributions may be taxed at the top marginal rate, and even if they are, cash must be paid to them — creating complications if the relationship ends.
He closes by urging families to treat loans, gifts, and trust distributions carefully and seek advice if unsure.
