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Financial topic guide

Estate & Succession Planning

Estate planning is about making sure the right people receive the right assets, in the most tax-effective way, with the least stress — when you're no longer able to decide. This guide covers wills, what passes outside your will, super death benefits, powers of attorney and trusts, then lets you model your own estate.

Model my estate ↓ Learn the framework
General advice only. This information and the calculators below are educational and not personal financial or legal advice. Estate planning involves legal documents that should be prepared by a qualified solicitor, alongside a licensed financial adviser. Tax treatment of death benefits depends on your circumstances.
The advice framework

The eight building blocks of estate planning.

These are the same areas a professional adviser works through when advising on estate planning — explained here in plain English.

Follow the path from your will, through the assets that bypass it, to tax and protecting your wishes. Tap any block to explore it and see how it connects.

01 · The will
Your will & executor

A will is the legal document that directs who receives your estate assets and appoints an executor to carry out your wishes. Without a valid will, you die "intestate" and a legal formula — not you — decides who inherits.

02 · The big myth
What doesn't pass via your will

Many of your biggest assets bypass your will entirely: super, jointly-owned property (passes by survivorship), life insurance with a nominated beneficiary, and assets in trusts or companies. A will alone is rarely a complete plan.

03 · Super
Death benefit nominations

Your super fund's trustee decides who gets your super unless you have a valid binding death benefit nomination (BDBN). A BDBN legally directs it — and who receives it determines whether it's taxed.

04 · Death benefit tax
Tax on super at death

Super paid to a tax dependant (spouse, minor child) is tax-free. Paid to a non-dependant (independent adult child), the taxable component is taxed at 15% + Medicare. Planning can reduce this.

05 · While alive
Powers of attorney

An enduring power of attorney lets someone manage your financial affairs if you lose capacity; an enduring guardian covers health and lifestyle decisions. These protect you in life, not just after death.

06 · Trusts
Testamentary trusts

A trust created by your will can protect assets for vulnerable beneficiaries, shield against relationship breakdowns, and distribute income to minors at adult tax rates — a significant tax advantage for families.

07 · Business
Business succession

If you own a business, a succession plan — often a buy/sell agreement funded by insurance — ensures ownership passes smoothly and your family is paid fair value without forcing a fire-sale.

08 · Disputes
Protecting your wishes

Wills can be challenged under family-provision laws. Clear documentation, valid nominations, and structures like testamentary trusts help ensure your assets reach the people you intend, with fewer disputes.

Interactive dashboard

Model your estate.

Three calculators that make estate planning concrete. Drag the sliders — everything updates instantly. All figures are estimates for general guidance only, using indicative 2025–26 rates.

Your assets & how they're held

Controlled by your will — your "estate" — the rest passes outside it
Estate vs outside your will
—Passes via your will
—Passes outside your will
Where each asset goes

Your super death benefit

Most super has a taxable and a tax-free component. The tax-free part is never taxed. The taxable part is tax-free to a dependant, but taxed at 15% + 2% Medicare when paid to a non-dependant. (Assumes a taxed super fund.)

Tax on the death benefit — effective rate — of the balance
Components
—Net amount to your beneficiary

Income to minor beneficiaries

Normally a minor's investment income above $416 is taxed at penalty rates (up to 66%). Income from a testamentary trust is "excepted" — each child is taxed at adult marginal rates with the full $18,200 tax-free threshold.

Potential tax saving / year — — distributed to each child
Tax on the children's income
—Tax at minor penalty rates
—Tax via testamentary trust

These calculators are simplified models for general education. They make assumptions and exclude many factors relevant to you (state-based intestacy and family-provision laws, CGT on inherited assets, the precise taxed/untaxed elements of super, anti-detriment and insurance proceeds in super, and more). Estate planning requires legal documents prepared by a solicitor. Before acting, get personal advice from a licensed financial adviser and an estate planning lawyer.

In depth

The estate planning areas, explained.

Your will and executor.

A valid will is the foundation. It directs your estate assets and names the person responsible for carrying out your wishes.

  • ✓ Appoint an executor you trust to administer the estate
  • ✓ Name guardians for minor children
  • ✓ Keep it valid — signed, witnessed, and updated after major life events
  • ✗ Without a will, intestacy laws decide who inherits — and it may not be who you'd choose
A valid will
General guide
✓In writing, signed and properly witnessedRequired
✓Executor appointedEssential
!Review after marriage, divorce, childrenCan revoke it
✓Guardians named for minor childrenImportant

The assets your will doesn't touch.

This is the most misunderstood part of estate planning. Some of your largest assets pass outside your will entirely — try the "will's reach" calculator above.

  • ✓ Super: directed by the fund trustee or your BDBN, not your will
  • ✓ Joint tenancy: passes automatically to the surviving owner
  • ✓ Life insurance: a nominated beneficiary is paid directly
  • ✓ Trusts & companies: controlled by their own rules, not your will
Estate vs non-estate
Try it above
Estate assetsSole-name property, cash, shares — pass via your will
Non-estate assetsSuper, joint assets, nominated insurance★ Often the majority of your wealth — plan them separately

Directing your super.

Super is usually one of your largest assets, yet it sits outside your will. How you nominate it controls both who receives it and how it's taxed.

  • ✓ A binding death benefit nomination (BDBN) legally directs your super
  • ✓ Non-lapsing BDBNs stay valid; others must be renewed every three years
  • ✓ Paid to a tax dependant — tax-free; to a non-dependant — taxable component taxed
  • ✓ A re-contribution strategy can reduce the taxable component for beneficiaries
Death benefit tax
Try it above
To a tax dependantTax-free, lump sum or income stream★ Spouse and minor children are tax dependants
To a non-dependantTaxable component taxed at 15% + Medicare
Re-contribution strategyCan convert taxable into tax-free component

Planning for incapacity, not just death.

Estate planning isn't only about what happens when you die — it's also about who steps in if you lose the capacity to decide for yourself.

  • ✓ Enduring power of attorney: manages your financial & legal affairs
  • ✓ Enduring guardian: makes health and lifestyle decisions
  • ✓ Advance care directive: records your medical wishes
  • ✗ Without these, your family may need a tribunal order to act for you
While you're alive
General guide
Enduring power of attorneyFinancial & legal decisions if you lose capacity
Enduring guardianHealth, care and lifestyle decisions★ Just as important as your will, and often forgotten
Advance care directiveYour medical treatment wishes

Testamentary trusts.

A trust created by your will can protect beneficiaries and deliver real tax advantages — particularly where minor children are involved.

  • ✓ Minors' income from the trust is taxed at adult marginal rates (with the tax-free threshold)
  • ✓ Protects assets from a beneficiary's bankruptcy or relationship breakdown
  • ✓ Useful for vulnerable beneficiaries or blended families
  • ✓ Flexible income distribution among family beneficiaries
Why use one
Try it above
Tax on minors' incomeAdult rates, not penalty rates★ The trust calculator above shows the saving
Asset protectionShields against bankruptcy & family law claims
ControlStaged distributions for young beneficiaries

Business succession.

If you own a business with others, a succession plan ensures your share passes smoothly and your family is paid fair value.

  • ✓ A buy/sell agreement sets out what happens to your share on death or disability
  • ✓ Usually funded by life and TPD insurance so cash is available
  • ✓ Avoids forcing the sale of the business or disputes with co-owners
  • ✓ Coordinate it with your will and super nominations
Succession essentials
General guide
✓Buy/sell agreement in placeKey document
✓Funded by insuranceProvides cash
!Must align with will & super nominationsCoordinate
✓Reviewed as the business changesKeep current
Deep dive Q&A

Your estate questions, answered.

The questions Australians ask most about wills and estate planning — answered in plain English.

Need personal advice?

The calculators above are a starting point. Estate planning needs legal documents — work with a licensed financial adviser and an estate planning solicitor.

Generally no. Superannuation is held in trust and doesn't automatically form part of your estate, so it isn't governed by your will unless you specifically direct it there. Instead, your fund's trustee decides who receives your super — usually your dependants or your estate — unless you have a valid binding death benefit nomination (BDBN) in place. Because super is often one of your largest assets, getting your nomination right is one of the most important steps in estate planning. The "will's reach" calculator above shows how much of your wealth sits outside your will.
You die "intestate," and your estate is distributed according to a fixed legal formula that varies by state or territory — not according to your wishes. Typically a spouse and children are prioritised, but the split may not reflect what you'd have chosen, and unmarried partners, stepchildren or close friends can miss out entirely. It also takes longer, costs more, and someone has to apply to be administrator. A simple, valid will avoids all of this.
It depends on who receives it and the components of your balance. Super has a tax-free component and a taxable component. Paid to a tax dependant (such as a spouse or a minor child), the entire benefit is tax-free. Paid to a non-dependant — most commonly an independent adult child — the taxable component is taxed at 15% plus the 2% Medicare levy. The death-benefit-tax calculator above lets you estimate this, and a re-contribution strategy during your lifetime can reduce the taxable component.
A BDBN is a legal instruction to your super fund's trustee directing exactly who should receive your super death benefit. With a valid binding nomination, the trustee must pay it as you've directed, rather than using their own discretion. Some nominations lapse after three years and must be renewed; others are non-lapsing. You can usually nominate dependants (spouse, children, financial dependants) or your legal personal representative (your estate). Keeping your BDBN current and valid is essential — an expired nomination hands the decision back to the trustee.
A testamentary trust is a trust created by your will that comes into effect when you die. Instead of assets passing directly to a beneficiary, they're held in trust and managed for their benefit. The advantages can be significant: income distributed to minor children is taxed at adult marginal rates (with the full tax-free threshold) rather than penalty rates; assets are protected from a beneficiary's bankruptcy or divorce; and you can control how and when young or vulnerable beneficiaries receive money. They suit families with children, blended families or substantial assets. The trust calculator above shows the potential tax saving.
A will only takes effect when you die. A power of attorney protects you while you're alive but unable to make decisions — for example, after an accident or illness. An enduring power of attorney lets a trusted person manage your finances and legal affairs, and an enduring guardian (the name varies by state) covers health and lifestyle decisions. Without them, if you lose capacity your family may have to apply to a tribunal for the authority to act, which is slow and stressful. These documents are a core part of a complete estate plan.
Yes. Under family-provision laws, certain people — such as a spouse, children or dependants — can contest a will if they believe they haven't been adequately provided for, and a court can order a different distribution. You can't make your will completely challenge-proof, but clear documentation, valid and current nominations, fair provision for dependants, and structures such as testamentary trusts can reduce the risk and help ensure your wishes are respected. An estate planning solicitor can advise on strategies for your situation.
When general isn't enough

Make sure your wishes are met.

The calculators show how your estate is structured. A licensed financial adviser, working with an estate planning solicitor, can put the right documents, nominations and structures in place for your family.

Find a licensed adviser on MoneySmart → Explore other topics
Important disclaimer

Please read before you rely on anything here

The information on this website is general in nature only and does not take into account your personal objectives, financial situation, or needs. It is not financial, legal, or taxation advice, and nothing on this site is intended to be relied upon as advice or to create any legally binding obligation or relationship.

While we try to keep the content accurate and current, it may be out of date, incomplete, or incorrect. Rules, rates, contribution caps, and thresholds change frequently — always verify the current figures with the ATO, ASIC's MoneySmart website, or a licensed professional.

All calculators, projections, and figures shown are for illustration and demonstration purposes only. They rely on simplified assumptions, are not predictions, quotes, or guarantees, and your actual outcome will differ.

Before acting on anything you read here, we strongly recommend you seek professional advice from a licensed financial adviser, accountant, or solicitor who can consider your individual circumstances. AdviceGenie does not hold an Australian Financial Services Licence (AFSL) and does not provide financial product advice as defined in the Corporations Act 2001 (Cth).

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