If you have a business, company, family trust or SMSF, estate planning usually includes preparing a written estate plan to help you and your family understand the succession of those entities.

Assets owned by another legal entity that you control will not form part of your estate on your death, therefore they can’t be dealt with in your Will. Those assets will continue to be held for the benefit of the beneficiaries of those trusts or shareholders of those companies.

The entity itself will continue to exist following your death and your death will bring an end to any personal rights you have to control the entity, for example as a trustee or director.  Depending on the terms upon which the entity is constituted, you may be able to pass the control of the entity on to other people.

There is no one-size-fits-all. Every entity is governed by its own rules (e.g. Trust Deed or Constitution) which vary significantly. It is essential to obtain advice about the succession of each entity to ensure that they will pass in accordance with your wishes.

Companies

Shares you own in a company will usually form part of your estate on your death, however the assets owned by the company itself will not.
It’s essential to ensure that your company will be controlled by an appropriate person after you die. There are several ways to do this, depending on the company structure and the terms of the company constitution.

Trusts

Assets which are legally owned by the trustee of a discretionary family trust will not form part of your estate on your death.  As with companies, the task becomes one of passing control of the trust to the relevant person. It is essential for your lawyer to review the terms of your trust deed to determine how control can be passed and make sure the trust will be controlled by the appropriate people.

SMSF

Superannuation death benefits do not automatically form part of your estate on your death. As part of your estate planning, we will review your superannuation trust deed to make sure that your death benefits will be paid to the appropriate people, and that the SMSF will be controlled by appropriate people.

For tailored estate planning advice, contact us for an estate planning consultation.