At its core, estate planning is the process of deciding how your assets - everything from superannuation and property to business interests - will be distributed after you die. But it’s more than just writing a will. Estate planning also considers taxation, asset protection, superannuation structures, and business continuity.

As Shannon explains, “Accountants and financial advisors are uniquely positioned to support clients in estate planning. We know the full financial picture, and we understand the structures - like trusts, companies, and SMSFs - that a standard will might not cover.”

Many Australians believe that once they’ve written a will, their affairs are sorted. In reality, wills only deal with estate assets - things you personally own. Business entities, family trusts, SMSFs, and superannuation often fall outside the scope of a traditional will.

That’s where people get caught out. Shannon and the Smart Private Wealth team frequently works alongside lawyers to prepare estate planning briefing papers that map out:

• The family structure (visualised as a family tree)
  
• Legal entities and ownership structures
  
• Desired asset distribution
  
• Tax implications
  
• Succession planning
  

Shannon notes that most lawyers aren’t tax experts - and most clients struggle to explain their financial structures. That’s why collaborating with financial professionals and legal experts is critical to ensure estate plans are robust, compliant, and aligned with the client’s wishes.

Superannuation doesn’t automatically form part of your estate. Neither does life insurance, especially when held within super. To ensure these assets are distributed to the right people, you must nominate your beneficiaries correctly using a Binding Death Benefit Nomination (BDBN).

Shannon warns that failing to update nominations can have devastating consequences. “I’ve seen cases where life insurance policies were still directed to an ex-partner, and the current spouse was left with nothing. That’s legally binding. It’s incredibly hard to overturn.”

Her advice? Log in to your superannuation account today and check your beneficiaries. Make sure your instructions reflect your current wishes - and your current life circumstances.

A testamentary trust is one of the most powerful estate planning tools available. Written into your will, it activates upon your death and allows your assets to be managed under a trust structure for the benefit of your chosen beneficiaries.

Key benefits include:

• Asset Protection: Assets held in a testamentary trust are protected from bankruptcy and do not form part of the marital asset pool in the event of a divorce. This keeps wealth in the family line, even if your children or grandchildren go through financial hardship or relationship breakdowns.
• Tax Advantages: Testamentary trusts allow income to be distributed to children under 18 and taxed at normal adult rates - up to $18,200 tax-free per child per year. For families paying school fees or saving for future education, this can be a game-changer.
• Control from the Grave: Through clear instructions and trustee appointments, you can control how and when beneficiaries receive their inheritance - e.g., only at age 30 or upon seeking professional advice.

Shannon says, “Think of it as smart control, not tight control. It’s about preserving and protecting, not restricting.”

Blended families introduce another layer of complexity. Many people assume their spouse or children will “do the right thing,” but estate disputes are increasingly common - and often ugly.

Shannon shares the example of a client who had two loyal adult children and an estranged third child. Through careful planning, including the use of investment bonds and a letter of wishes, they were able to protect most of the estate from legal challenge while still allocating a modest amount to the estranged child to avoid court issues.

“In many cases, it’s about reducing the risk of a successful challenge. If 70% of estate disputes win, you need documentation that explains your wishes, your reasoning, and your structure.”

For business owners, estate planning goes beyond family - it’s also about the continuity of the business.

• Successor Directors: If you’re the sole director of a company and pass away without a named successor, no one - including your spouse - can legally step into your role without a court process. This can stall operations and payroll, harming employees and clients alike.
• Buy-Sell Agreements: If your business has multiple shareholders, a buy-sell agreement funded by insurance ensures that your stake can be bought out and passed on without financial hardship. Without one, your family may end up owning shares they don’t want - or your business partner may be forced to buy them out under financial stress.
• Systemisation: Shannon is a strong advocate for systemising your business. Using platforms like SystemHub, she ensures her own team can keep operating regardless of who’s at the helm. “McDonald’s could replace a store manager in a day because the systems are in place. Business owners should aspire to the same level of resilience.”

Poor estate planning can erode wealth faster than you think. Shannon highlights three key threats:

1. Legal Fees: Some law firms embed themselves into your will and then charge 5% of the estate upon your death. That’s $50,000 on a $1M estate—often avoidable with better planning.
2. Unpaid Taxes: Superannuation passed to non-dependents can trigger a 17% tax bill. If beneficiaries spend the full amount before they understand the tax implications, they could be left with a financial burden instead of a gift.
3. Family Conflict: Even tight-knit families can splinter over money. “I’ve seen siblings fight over which house they inherit, only to discover one carries a hidden tax bill. A well-structured estate plan prevents surprises - and lawsuits.”

One of the most powerful stories Shannon shares is from her own life. When her husband’s mother passed away, they used the inheritance to invest in education for their children.

“She never got to meet her grandchildren, but she paid for their school fees. That legacy means everything to us.”

This story exemplifies the power of intentional estate planning: turning tragedy into long-term opportunity.

Estate planning doesn’t need to be overwhelming. Start with these steps:

1. Review your will – Is it current? Does it include testamentary trusts?
   
2. Check your super – Update your BDBN.
   
3. Document your wishes – Write a personal letter alongside your legal documents.
   
4. Talk to your accountant or financial advisor – Especially if you have trusts, businesses, or investment properties.
   
5. Get legal advice – A good estate lawyer can structure your will correctly, but they need your financial team involved.