Succession Planning For Family Businesses: Why A Will Isn’t Enough
- Future Accounting
- Nov 27
- 4 min read
Written by: Chris Mulcahy
What every farming family should know about succession planning for family businesses
Why wills fall short for family business succession
In family farming and small business circles, talking about the future can feel uncomfortable. Succession planning for family businesses is often avoided because it’s emotional, personal and sometimes viewed as disrespectful to raise.
But avoiding the conversation can create far more pain than the discomfort of having it.
A will is essential, every family needs one.
But a will is not a succession plan, and relying on it as if it is can lead to outcomes nobody intended.
Bringing the 3P’s into successful succession
At Future Accounting, our approach to succession planning for family businesses is built around our 3P’s framework: Preserve, Protect, Prosper.
Preserve what the family has built; values, relationships, history and core assets.
Protect the business and the people involved; structurally, legally and tax-effectively.
Prosper into the next generation by giving successors clarity, capability and confidence.
This framework helps families understand that real succession planning requires more than a will. It requires a plan to secure the long-term health of the family and the business.
A real family example of planning gone wrong
I recently met with a new client family working through their father’s estate. He genuinely wanted to be fair. He left the family farm equally to all four children and included an option for the farming child to purchase the others’ shares at 80 per cent of market value.
On paper, it looked balanced and thoughtful.
But there was a major problem:
The farm wasn’t structured as a business asset.
There had been no review, no discussion and no alignment between the will and the structure.
So when the siblings sold their shares to the farming child, those transfers triggered tax.
What was meant to be smooth succession planning for a family business became a financial burden, the exact opposite of what Dad intended. A $600,000 donation to the ATO!
This wasn’t caused by poor intentions.
It was caused by a lack of planning, communication and structural alignment.
The importance of discussing succession early
A will only takes effect once someone has passed. By then:
you can’t ask questions
you can’t clarify intentions
you can’t restructure
you can’t fix tax issues
you can’t ensure fairness
you can’t adapt to business realities
Succession planning for family businesses brings these issues into the open while the founder is still here.
Proper planning allows families to:
restructure assets
qualify for Small Business CGT concessions
qualify for restructure CGT and income tax concessions
plan equity transfers
document roles and expectations
fund buyouts
prepare the next generation
protect family harmony
A will distributes assets.
A succession plan transfers leadership, ownership and responsibility, sustainably and tax-effectively.
What families can do to strengthen their succession plan (using the 3P’s)
Preserve
Review your will regularly as your family and business evolve.
Talk openly about intentions - silence and assumptions create conflict.
Involve the whole family early to maintain relationships and clarity.
Protect
Check your business structure and ensure it aligns with your plan.
Use Small Business CGT concessions strategically — powerful when planned, costly when forgotten.
Document buyout options properly and understand the tax consequences.
Prosper
Prepare the next generation with clarity about expectations and roles.
Build a plan for leadership and ownership transitions well before they’re urgent.
Create a long-term pathway that supports both the business and the family.
Succession planning for family businesses is not just a legal step, it’s an act of care, stability and multigenerational prosperity.
Protect your legacy with proactive succession planning
The goal isn’t to question Mum or Dad’s decisions.
It’s to make sure the plan they want is the plan that actually happens.
A will is important.
But without thoughtful succession planning for family businesses, it’s not enough.
If your family hasn’t reviewed its structure or its succession intentions recently, now is the ideal time. These conversations safeguard the people and the legacy you value most.
If you want clarity and confidence about your family’s future, book an appointment with us today. We’ll help you apply the 3P’s - Preserve, Protect and Prosper - to build a practical, tax-smart and family-focused succession plan.
Disclaimer
This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.
Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder
Liability limited by a scheme approved under professional standards legislation.
