Business Succession Planning
Wills & Probate
Key Takeaway
For business owners, estate planning must address what happens to the business when you die or lose capacity.
For business owners, estate planning must address what happens to the business when you die or lose capacity. Without proper succession planning, your business may need to be sold, your family may lose their livelihood, and the value built over a lifetime can be dissipated. We develop comprehensive business succession plans that protect your business, your family, and your key employees.
Business succession planning involves coordinating corporate structures, partnership agreements, buy-sell arrangements, life insurance funding, and estate planning to ensure a smooth transition of business ownership and management when a business principal dies, retires, or becomes incapacitated.
Buy-Sell Agreements for Business Ownership
Buy-sell agreements (also known as business succession agreements or pre-emptive rights arrangements) govern what happens when a business owner dies, becomes incapacitated, or wants to exit the business. These agreements typically provide for the remaining owners or the business itself to purchase the departing owner's interest at a predetermined valuation methodology. Funding through life insurance or income protection insurance ensures the necessary funds are available when needed. Without a buy-sell agreement, the surviving owners may find themselves in business with the deceased owner's estate or family members who have no interest or experience in the business.
Integrating Business & Estate Planning
Business assets require careful integration with personal estate planning. A business owner's will must address the disposition of business interests, which may be subject to buy-sell agreements, shareholder restrictions, or directors' duties. Superannuation death benefits (including business insurance proceeds) should be coordinated with the estate plan. Business real property may qualify for stamp duty concessions if transferred to the right beneficiaries. We ensure that business succession arrangements work in concert with personal estate planning, avoiding conflicting provisions and maximising tax effectiveness for all parties.
Small Business CGT Concessions & Succession
The small business capital gains tax (CGT) concessions in Division 152 of the Income Tax Assessment Act 1997 can significantly reduce or eliminate CGT on the sale of a business or business assets, including transfers to family members in some circumstances. The concessions include the 50% active asset reduction, the 15-year exemption, the retirement exemption (up to $500,000), and the rollover for replacement assets. Eligibility conditions include the maximum net asset value test, active asset test, and turnover thresholds. Proper planning and timing are essential to access these valuable concessions in a succession scenario.
Business Succession Planning FAQs (Queensland Law)
What are business succession structures in Queensland?
At our firm, business succession structures include company share transfer arrangements, partnership continuation agreements, trust succession provisions, and buy-sell agreements. The structure must align with the business legal form and the owners estate plan.
What are buy-sell agreements?
At our firm, buy-sell agreements govern what happens when a business owner dies, becomes incapacitated, or wants to exit. They provide for remaining owners or the business to purchase the departing owners interest at a predetermined valuation, often funded by life insurance.
What is key person insurance?
At our firm, key person insurance is a life insurance policy taken out by the business on the life of a key employee or owner. The proceeds compensate the business for financial loss if the key person dies or becomes incapacitated. Premiums are not tax deductible.
How does trust and company succession work?
At our firm, trust succession involves appointing successor trustees and specifying beneficiary entitlements on death. Company succession involves share transfer provisions in the constitution and shareholders agreement, and director appointment mechanisms.
What capital gains tax relief is available for business succession?
At our firm, the small business CGT concessions in Division 152 of the ITAA 1997 provide significant relief: 50% active asset reduction, 15-year exemption, retirement exemption (up to ,000), and rollover for replacement assets. Eligibility conditions must be carefully met.
Business Succession Planning Services
- Business succession plan development and documentation
- Buy-sell agreements and shareholder arrangement preparation
- Business structure review for succession readiness
- Partnership succession clauses and exit arrangements
- Life insurance and funding arrangements for buy-outs
- Trustee succession planning for discretionary and unit trusts
- Business will and estate planning integration
- Key person protection and continuity arrangements
- Management succession and governance documentation
- Family business governance and family council establishment
- Exit strategy advice including sale to management or third parties
- Tax-effective succession including small business CGT concessions
Last updated: July 2026
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