Simple English definitions for legal terms
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Family-Partnership Rules: These are laws that stop family members from moving money between each other in a way that is not fair. This is to make sure that everyone is treated equally and that no one gets an unfair advantage.
Definition: Family-partnership rules are laws or regulations that aim to prevent the transfer of income between partners, particularly family members, who may not be conducting business at an arm's length.
Examples:
These examples illustrate how family-partnership rules aim to prevent partners, particularly family members, from transferring income or assets in a way that is not at arm's length. This means that the transfer should be made as if the two parties were unrelated and conducting business with each other in a fair and equitable manner.