What Assets Form Part of Your Personal Estate?
When preparing a will, many people assume that everything they control automatically forms part of their personal estate.
That is not always the case.
The distinction becomes especially important if you own a business, control a family trust, hold assets through a company or have a self-managed super fund. Understanding what is personally yours and what belongs to another legal structure is an essential part of effective estate planning.
What Is Your Personal Estate?
Your personal estate generally includes assets that you own in your individual name.
This can include:
property owned personally;
bank accounts in your name;
shares held personally;
personal belongings; and
certain life insurance interests.
These are the kinds of assets that can usually be dealt with directly through your will.
However, the way an asset is owned matters. A jointly owned asset may operate differently from an asset held solely in your name.
Do Joint Assets Form Part of Your Estate?
Not always.
Jointly owned bank accounts, shares or property may pass automatically to the surviving joint owner, depending on how the asset is legally held.
This means an asset can appear to be “yours” during your lifetime but may not ultimately pass under your will.
This is why ownership structure should always be reviewed as part of estate planning rather than simply preparing a list of assets.
Does a Company Form Part of Your Estate?
A company is a separate legal entity.
Even if you are the director, shareholder or person who controls the business, the assets owned by the company are not your personal assets.
For example, if your company owns:
a commercial property;
vehicles;
cash;
equipment; or
investments,
those assets belong to the company rather than to you personally.
What may form part of your estate are shares that you personally own in the company.
What happens to those shares after death may also depend on the company constitution, shareholder arrangements and other succession documents.
Does a Family Trust Form Part of Your Estate?
Generally, trust assets are also separate from your personal estate.
A family trust may own property, investments, cash or business interests, but those assets belong to the trust structure rather than to you individually.
However, your role within the trust can be extremely important.
Succession planning may need to consider:
who becomes trustee;
who controls the trustee company;
who has powers under the trust deed; and
what happens when key people die or lose capacity.
A will alone may not be enough to properly deal with those issues.
Does Superannuation Form Part of Your Estate?
Superannuation does not automatically form part of your estate.
This includes assets held through a self-managed super fund.
Although you may have significant control over your superannuation during your lifetime, the fund itself operates separately from your personal estate.
Where your superannuation ultimately goes can depend on beneficiary nominations, fund rules and other estate planning arrangements.
Why Business Succession Planning Matters
Business owners often focus heavily on their will while overlooking the structures that sit outside it.
A complete estate plan should consider both:
your personal assets; and
the companies, trusts and superannuation structures you control.
This may require reviewing company constitutions, trust deeds, shareholder arrangements and succession mechanisms alongside your will and enduring power of attorney.
Frequently Asked Questions
Can I leave company assets to someone in my will?
No, you cannot directly give away assets owned by a company because those assets belong to the company and not you. You can however deal with shares you personally own.
Does a family trust automatically pass under my will?
No. Trust assets are generally separate from your estate, and succession will depend on the trust deed and the roles you hold within the structure.
Is superannuation automatically included in my estate?
No. Superannuation is generally dealt with separately and may pass according to beneficiary nominations and fund rules.
Why should business owners review their estate plan differently?
Because a will only deals with certain personally owned assets. Business structures often require separate succession planning to make sure control passes as intended.
Final Thoughts
Understanding what is and is not part of your personal estate is one of the most important foundations of good estate planning.
For individuals with companies, trusts or self-managed super funds, a will should form part of a broader succession strategy rather than being treated as a standalone document.
If you own a business, control a trust or are unsure how your assets would be dealt with after your death, contact Lidia Vicca or book a free consultation to review your estate planning and business succession arrangements.