Do not assume that a shared name or beneficiary resolves ownership and control. Have the actual structure and governing rights assessed under the qualifying-relationship rules.
Explain the rights that connect the entities
Identify who holds and exercises the relevant powers. A simplified chart can help explain the structure, but it must remain consistent with the underlying documents rather than replace them.
Affiliates qualify when the same individuals own and control both entities in approximately the same proportions, or when one entity owns and controls both. Only if control can be established, not merely equal ownership.
What makes or breaks the claim is documentation: the ownership must be shown, not asserted, and both companies must be actively conducting business. Ask who actually exercises the trust's voting and appointment rights rather than assuming that shared trust ownership means shared control, since a trustee's independent discretion can separate legal ownership from the control exercised by named beneficiaries. Request the trust instrument, not only a summary, and check whether it names a single decision-maker, a committee or a successor arrangement that could shift authority over time. Confirm that voting or appointment rights recorded in the trust match the proportions claimed in the organizational chart. Distinguish a beneficiary who receives distributions from one who can direct votes, appoint officers or approve major transactions, because only the latter role supports a claim of common control between the entities.