Dying without a will—also known as dying intestate—can have serious legal and financial consequences, especially for business owners. In Queensland, if you pass away without a valid will in place, your estate, including your business interests, is distributed according to strict intestacy laws. These laws may not reflect your personal or professional wishes and can result in unnecessary stress for your family, employees, and business partners. This article outlines exactly what happens to your business if you die without a will and how to avoid common risks through proactive estate planning.
What is the Legal Process When You Die Intestate in Queensland
When someone dies without a valid will in Queensland, the law determines who administers the estate and who benefits. This process can be complex and lengthy, particularly for business owners.
- Administrator Appointment: If you have no will, the court must appoint an administrator—often a family member or the Public Trustee—to manage your estate.
- Asset Distribution: Your assets are distributed according to a formula set by the Succession Act 1981 (Qld), not by your personal preferences.
- No Automatic Business Transfer: Your business doesn’t automatically pass to your spouse, children, or business partner unless your structure or agreements say so.
How Intestacy Affects Different Business Structures
- Sole Trader: Your business is considered part of your personal estate. It ceases operations on your death and is subject to probate or administration before any transfer can happen. This can result in delays, client loss, or asset fire sales.
- Partnership: If no partnership agreement is in place that specifies what happens on death, your interest in the partnership will be treated as part of your estate. Surviving partners may be forced to work with an administrator or family members, which can create disputes.
- Company: In a company structure, your shares form part of your estate. However, if you are the sole director and shareholder, no one has the authority to run the company until a legal personal representative is appointed. This can cause severe disruption.
See our other article: Estate Planning Essentials for Business Owners in Queensland: Wills, Testamentary Trusts and Succession Planning
What are the risks of Not Having a Will as a Business Owner
- Delays in appointing someone to run or wind down your business
- Loss of income to your family during legal proceedings
- Potential disputes among business partners, clients, or heirs
- Risk of business assets being undervalued or sold quickly
How to Protect Your Business with a Will and Succession Plan
Creating a valid will is just the first step. Business owners should also have a succession plan that covers:
- Who will take over management or ownership?
- How the business should be valued
- Buy-sell agreements between business partners
- Insurance policies to fund buyouts or provide income to family members
If you run a business in Queensland, don’t leave the future to chance. At Bennett Carroll Solicitors, we help business owners across Brisbane, the Gold Coast, Sunshine Coast, Ipswich and all across Queensland create tailored wills and business succession plans. Our experienced estate lawyers will work with you to ensure your business, assets, and family are protected.
Other useful links:
