Running a business adds a layer of complexity to estate planning that a generic will template rarely covers. If something happened to you tomorrow, would your business keep operating — and would the right people end up in control of it? Here's what Perth business owners need to have in place.
Why does estate planning matter more for business owners?
If you run a business, your estate isn't just your house, car, and bank accounts — it includes company shares, control of a family trust, unpaid present entitlements, work-in-progress, and often a self-managed super fund. A generic will that only deals with personal assets can leave these business interests in limbo. Without clear instructions, co-directors, business partners, or family members can be left arguing over control while the business itself loses momentum, staff, and clients.
Does a will cover my business interests?
Partly. A will governs assets you personally own — for example, your shares in a trading company. But it does not automatically deal with assets controlled by a family trust (the trust technically owns those, not you), and it does not cover superannuation, which sits outside your estate by default. If your business operates through a family trust or has an SMSF in the mix, you need succession planning for the trust's appointor and trustee roles, and for the super fund, in addition to a will.
What about company shares specifically?
Shares in a private company generally do pass through your will, but check your company's constitution and any shareholder agreement first — some contain pre-emptive rights or restrictions that override what your will says, particularly around transferring shares to someone outside the existing shareholder group.
What is a binding death benefit nomination and why does it matter?
Superannuation, including any life insurance held inside your super, is held in trust by the fund and doesn't form part of your estate automatically. A binding death benefit nomination is a written direction telling the fund trustee exactly who should receive your super balance when you die. Without one, the trustee has discretion to decide — which can mean delays, disputes between family members, and a less tax-effective outcome, especially where adult children or business partners (rather than a spouse) are involved. Nominations typically need to be renewed every three years to stay valid, so it's worth diarising a review alongside your SMSF and super arrangements.
Who should hold power of attorney for a business owner?
An enduring power of attorney lets someone step in and make financial and legal decisions on your behalf if you're temporarily or permanently unable to — after an accident or serious illness, for example. For a business owner, this isn't just about paying household bills; your attorney may need to sign off on payroll, supplier payments, or contracts to keep the business running. Many owners appoint a spouse or co-director as attorney, sometimes alongside their accountant or lawyer for larger or more complex businesses, so day-to-day decisions don't stall while the rest of the family deals with a medical crisis.
What is business succession planning and how does it fit with my will?
Business succession planning sets out what happens to your role, shares, and control in the business if you die, become permanently incapacitated, or simply want to retire. For businesses with more than one owner, this is usually documented in a buy-sell agreement, funded by life and total permanent disability insurance, so surviving owners can buy out a departing owner's share (or their estate) at a pre-agreed value without having to find a lump sum on the spot. This agreement needs to align with your will and trust deed — if they contradict each other, it can trigger exactly the kind of dispute succession planning is meant to prevent.
What documents should a Perth business owner have in place?
- A current will that accounts for company shares and any testamentary trust structure
- An enduring power of attorney covering financial and business decisions
- A binding death benefit nomination for super and any linked insurance
- A buy-sell or business succession agreement, where there's more than one owner
- Clear instructions on who becomes appointor or trustee of any family trust
How often should this be reviewed?
Review your estate and succession documents after any major change — bringing on a new business partner, a change in shareholding, marriage or divorce, or the birth of a child — and at minimum every few years even if nothing obvious has changed, since death benefit nominations lapse and business values shift. Once your estate documents are in order, a service like Custodium Vault makes it easy to store them securely and share access with the people who'll need them in an emergency, rather than leaving originals in a filing cabinet no one else can find.
The Metier Group works with Perth business owners to coordinate wills, powers of attorney, super nominations, and business succession so nothing falls through the gaps. Learn more about our wills and estate planning services, or contact us to get your plan in place.