Estate Planning
Estate planning is arranging how a person's assets are managed and distributed if they lose capacity or die. For farming families it also determines who inherits — and who controls — the farm business and its assets.
The core documents
A will sets out how assets are distributed after death and names an executor to carry out those wishes. Many people die without a valid, up-to-date will, which leaves the outcome to fixed intestacy rules under state succession law — rarely the best result for those left behind. A power of attorney lets a trusted person manage financial and legal affairs, and an enduring power continues if capacity is lost. An enduring guardian makes personal, lifestyle and medical decisions if a person can no longer do so. MoneySmart explains these documents in plain language.
What matters for farming families
- Make the will properly. Do-it-yourself wills are risky — a technical error can invalidate the will or cost the estate far more than was saved. Compare not just the cost of preparing a will but the cost of administering the estate.
- Choose the executor carefully. They must be reliable and honest, ideally with some business sense — and it is worth naming an alternate.
- Know what can actually be left by will. Assets owned by a company or trust do not belong to the individual — only their shares, units or interest do. Those shares or units may also carry control of the entity that owns the farm, so they can pass control, not just nominal value (the same goes for roles such as a trust's appointor or guardian). Superannuation does not automatically pass under a will; it follows a binding death benefit nomination or the fund trustee's decision.
- Align the estate plan with the business structure and succession plan so they work together rather than against each other.
Common questions
What is estate planning?
Arranging how a person's assets are managed and distributed if they lose capacity or die — typically through a will, powers of attorney and guardianship.
Why is a do-it-yourself will risky for a farming family?
A technical error can invalidate it or cause costly disputes, and farm assets held in companies or trusts need careful, specific treatment that a generic form will not provide.
Do company or trust assets pass under a will?
No. Only a person's shares, units or interest pass — but those can carry control of the entity that owns the farm, so they pass control as well as value.
Does superannuation pass under a will?
Not automatically. It follows a binding death benefit nomination, or the super fund trustee's decision if there is no valid nomination.