Why business estate planning is about protecting your legacy, your team and your family.
As business owners, we spend years building something we’re proud of. We invest our time, energy and resources into growing our business, supporting our team and creating financial security for our families.
But while many owners have a plan for growth, far fewer have a plan for the unexpected.
If something happened to you tomorrow, would your family know what to do? Could someone make financial decisions on your behalf? Would your business continue to operate, or would everything come to a standstill?
They’re not easy questions to ask, but they’re important ones.
It’s not just about your Will
Many people think estate planning begins and ends with having a Will. While a current Will is essential, it’s only one piece of the puzzle.
For business owners, Powers of Attorney can be just as important.
If you become seriously ill or temporarily lose the capacity to make decisions, a Power of Attorney allows someone you trust to step in. This ensures vital operations don't freeze, allowing them to sign important documents, manage banking, approve payroll and keep the business moving while you're unable to. Without those arrangements in place, even simple business decisions can become legally complicated and stalled.
By Warren Carron, SEIVA Advisor
Having a conversation with your loved ones about what happens with your assets after their death is never an easy one. I come from a South East Asian family, where it is nearly taboo to discuss this!
About 4 years ago, my Dad was diagnosed with brain cancer and was operated on almost immediately. There was no time to organise a Will, Powers of Attorney, or anything else. He gave me the passwords to his accounts, superannuation etc. and went into hospital. He had diminished capacity from almost immediately after the surgery, losing the ability to walk properly and he was not as sharp as he was previously (he was an accountant), sometimes struggling to express himself. He never had a Will, nor did he think he needed one, as he assumed everything would just be passed to my mother with no issues.
We did not petition to have a Will put in place after the operation because of his diminished capacity. We also assumed that my Mum would outlive my Dad, considering his diagnosis, but that nearly didn’t happen, as she suffered a major heart attack while looking after him. The doctors and hospitals soon realised I was the main point of contact, and I was able to financially look after my parents because I had the access codes to their accounts. But nothing was official, which would have made my life a lot easier when it came to looking after them. The process to petition the court for financial administration was quite daunting.
Some days my Dad would have moments of clarity, and I would summon up the courage to discuss his finances after his death. What I realised is that he, like so many others, did not understand that there are tax consequences for certain actions when directing where your Superannuation ends up after you die.
My Dad wanted each of his children (3 of us) and my Mum to share his super. Although this is a noble thing to do, if your children are not financially dependent on the loved one who passes away, this can cause death benefit taxes to be deducted from their entitlement—approximately 15% plus the Medicare levy. But also, the death benefit amount increases their taxable income, which in turn may increase their variable tax rates. Luckily, he had updated his death benefit nomination form and his Superannuation was passed to my Mum upon his death, as she is classed as being financially dependent on my Dad.
After my Dad’s death, I had to deal with lawyers to get things moved from my Dad to my Mum in the absence of a Will. This was a long and arduous experience, which created a lot of stress not only on myself, but the rest of the family, as they all had opinions on where the money should go—which did not always have the best tax consequences.
Luckily, his estate was fairly simple, but if you factor in businesses, blended families, and complex assets, then this process can be extremely complicated for a loved one to sort out after your death. Now, upon my Mum’s illness or death, Powers of Attorney and a Will have been put in place, which will make things easier to move their assets in the direction that my Mum wishes.
I not only highly recommend having a conversation with your loved ones about where they would like their assets to go once they pass away, but I would also highly recommend discussing the tax consequences of these actions with an accountant, financial planner, and estate planning specialist.
Your business has probably changed. Has your planning kept up?
As Warren’s story highlights, assumptions can be incredibly costly — both emotionally and financially.
Businesses rarely stand still. If it has been a while since you last looked at your estate planning, think about what has shifted in your world recently.
Perhaps you’ve:
Each of these milestones is a direct trigger to review your protection strategies, ensuring they still reflect your current business structure, financial realities and personal wishes.
Protect the people who rely on you
Good planning isn’t just about protecting your assets; it’s about protecting the people around you.
When you map out the unexpected, your family gains certainty during an already difficult time, your team has greater confidence about what happens next, and your business has a better chance of continuing without unnecessary disruption.
How SEIVA can help
While we don’t prepare Wills or Powers of Attorney, we do play an important role in helping clients look at the bigger picture.
We can help you:
A simple conversation today can provide peace of mind tomorrow
Protecting your business isn’t only about growing it. It’s about making sure everything you’ve worked so hard to build is protected for the future.
If it’s been a few years since you reviewed your Will or Powers of Attorney, or your personal or business circumstances have changed, now is an excellent time to revisit them.
Speak with your SEIVA Advisor and we’ll help you understand the financial and business considerations before connecting you with one of our trusted partners.
