Immediate Family

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DEFINITION of 'Immediate Family'

A person's smallest family unit, consisting of the closest relatives, such as parents, siblings and children. Immediate family may contain both biological relatives and those related through marriage, such as a brother-in-law. Exact inclusions for the immediate family may differ depending on the defining party.

BREAKING DOWN 'Immediate Family'

A variety of rules and legislation related to one's immediate family. The Financial Industry Regulatory Authority (FINRA), formerly the NASD, prohibits the sale of hot issues to immediate family members, as stated in the Rules of Fair Practice. Additionally, rules governing one's immediate family are noted in FINRA's concepts of withholding and free-riding.

Insurance policies and tax legislations also have provisions relating to immediate family members.

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