Relationship Types Reference
Relationships connect entities together. The system supports two categories: Family Relationships and Business Relationships.
Note: Distributions are tracked separately from relationships. Use the dedicated Distributions workflow when you need to record dated payments or allocations.
Note: Loans use a dedicated workflow too. Use Loans, Security, and Guarantors when you need to create or manage lender-borrower relationships and their linked collateral or guarantors.
Note: Leases also have dedicated forms because they carry structured lease metadata. Use Leases when you need to record an entity leasing an asset.
Family Relationships
Family relationships define connections between individuals. These are used in the Family Tree View to visualize family structures.
Spouse
- Between: Individual ↔ Individual
- Description: Married or de facto partners
- Bidirectional: Yes (automatically creates reciprocal relationship)
- Example: John Smith is spouse of Sarah Johnson
Parent
- Between: Individual → Individual
- Description: Parent-child relationship
- Reciprocal: Child (automatically created)
- Example: John Smith is parent of Michael Smith
Child
- Between: Individual → Individual
- Description: Child-parent relationship
- Reciprocal: Parent (automatically created)
- Example: Michael Smith is child of John Smith
Business Relationships
Business relationships define ownership, control, and roles. These are used in the Ownership View to visualize corporate and trust structures.
Shareholder
- Between: Individual/Company/Trust → Company
- Description: Ownership of shares in a company
- Percentage: Optional ownership percentage (0-100%)
- Example: John Smith is shareholder of Smith Holdings Pty Ltd (100%)
- Joint holdings: Two or more holders can own the same parcel together using a generated joint holding
Director
- Between: Individual → Company
- Description: Company director role
- Example: Sarah Johnson is director of Investment Co Pty Ltd
Unitholder
- Between: Individual/Company/Trust → Trust (Unit type)
- Description: Ownership of units in a unit trust
- Percentage: Optional ownership percentage (0-100%)
- Example: Smith Family Trust is unitholder of Property Unit Trust (50%)
- Joint holdings: Two or more holders can own the same unit parcel together using a generated joint holding
Joint Holding
- Between: Joint holders → Joint holding → Company or Unit Trust
- Description: Represents one parcel of shares or units held by two or more entities together
- Used with: Shareholder and Unitholder relationships
- Example: John Smith and Sarah Smith jointly hold 100 ordinary shares in Smith Holdings Pty Ltd
- Note: You usually create or edit this through the shareholder or unitholder relationship modal, not as a standalone entity
Trustee
- Between: Individual/Company → Trust
- Description: Trustee of a trust (manages trust assets)
- Example: John Smith is trustee of Smith Family Trust
- Note: A company can also be a trustee (corporate trustee)
Appointor
- Between: Individual → Trust
- Description: Appointor of a trust (can appoint/remove trustees)
- Example: Sarah Johnson is appointor of Smith Family Trust
Beneficiary
- Between: Individual/Company/Trust → Trust
- Description: Beneficiary of a trust (can receive distributions)
- Example: Michael Smith is beneficiary of Smith Family Trust
Loan
- Between: Individual/Company/Trust/SMSF/Partnership → Individual/Company/Trust/SMSF/Partnership
- Description: Records a lender-borrower arrangement between two eligible entities
- Children: Can include linked security and guarantor relationships
- Example: Smith Holdings Pty Ltd lends to Property Unit Trust
Loan Security
- Between: Lender entity → Asset
- Description: Records an asset used as security for a specific loan
- How it is created: Usually added from the loan workflow rather than as a standalone starting relationship type
- Example: Smith Holdings Pty Ltd holds security over 123 Main Street
Loan Guarantor
- Between: Lender entity → Individual/Company/Trust
- Description: Records an entity guaranteeing a specific loan
- How it is created: Usually added from the loan workflow rather than as a standalone starting relationship type
- Example: Smith Holdings Pty Ltd has a guarantee from John Smith
Lease
- Between: Individual/Company/Trust/SMSF/Partnership → Asset
- Description: Records an entity leasing an asset
- Metadata: Can include lease dates, term, payment, review, option, bond, PPSR, and notes data
- Example: Operating Co Pty Ltd leases Warehouse Unit 3
Relationship Rules and Validation
General Rules
- An entity cannot have a relationship with itself
- Duplicate relationships between the same entities are not allowed
- Some relationships are bidirectional (spouse) while others are directional (parent, shareholder)
- Percentages for ownership relationships must be between 0 and 100
Entity Type Restrictions
| Relationship | Valid Sources | Valid Targets |
|---|---|---|
| Spouse, Parent, Child | Individuals only | Individuals only |
| Director | Individuals only | Companies only |
| Appointor | Individuals only | Trusts only |
| Trustee | Individuals or Companies | Trusts only |
| Shareholder | Any entity type | Companies only |
| Unitholder | Any entity type | Unit/Hybrid Trusts only |
| Joint Holding | Normal entities as joint holders | Companies or Unit/Hybrid Trusts through the final ownership relationship |
| Beneficiary | Any entity type | Trusts only |
| Loan | Individuals, Companies, Trusts, SMSFs, Partnerships | Individuals, Companies, Trusts, SMSFs, Partnerships |
| Loan Security | Lender entity | Assets only |
| Loan Guarantor | Lender entity | Individuals, Companies, Trusts |
| Lease | Individuals, Companies, Trusts, SMSFs, Partnerships | Assets only |
Trust Type Restrictions
- Unitholder: Only valid for Unit or Hybrid trusts
- Beneficiary: Valid for all trust types
Examples of Complex Structures
Example 1: Family Business
- John Smith (Individual) is spouse of Sarah Johnson (Individual)
- John Smith is shareholder of Smith Holdings Pty Ltd (50%)
- Sarah Johnson is shareholder of Smith Holdings Pty Ltd (50%)
- John Smith is director of Smith Holdings Pty Ltd
Example 2: Trust Structure
- Smith Family Trust (Discretionary Trust) - trustee: Smith Trustee Co Pty Ltd
- Smith Trustee Co Pty Ltd (Company) is trustee of Smith Family Trust
- John Smith is director of Smith Trustee Co Pty Ltd
- Sarah Johnson is appointor of Smith Family Trust
- Michael Smith is beneficiary of Smith Family Trust
- Smith Family Trust is shareholder of Operating Co Pty Ltd (100%)
Example 3: Multi-Generational Structure
- Robert Williams is parent of John Smith
- John Smith is parent of Michael Smith
- Estate of Robert Williams (Testamentary Trust) - created from will
- John Smith is trustee of Estate of Robert Williams
- Michael Smith is beneficiary of Estate of Robert Williams
Related Topics
- Distributions — record dated dividends, trust distributions, partnership allocations, and SMSF payments
- Loans, Security, and Guarantors — create and manage loan relationships, collateral, and guarantees
- Leases — create and manage lease relationships and lease metadata between entities and assets
- Company Subsidiary Quick Create — create parent-to-subsidiary company structures quickly with default shareholder linking
- Joint Holdings — create and manage joint shareholdings and unitholdings
- Xero Practice Manager Sync — how relationships are synced from XPM
- Push to Xero Practice Manager — how relationships are pushed to XPM
- XPM Reconciliation — compare and resolve relationship differences
- Understanding Groups — organize entities and their relationships