Passing the business to the family.
Handing a business to your children is one of the hardest transitions an owner faces, because it mixes tax, structure and emotion all at once. A clear plan, built years ahead, is what lets the business survive the handover and keeps the family together while it happens.
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What's happening
- You want to hand the family business to one or more of your children, over time or at a set point.
- Not every child is involved in the business, and you want the outcome to feel fair to all of them.
- There are capital gains tax and stamp duty consequences when ownership transfers.
- You still need an income from the business, or from its sale, to fund your own retirement.
- The next generation needs to be ready to lead, not just to inherit.
What to think about
- 01
Decide who takes over, and over what period
Succession works best as a phased handover rather than a single date. Mapping out who takes which role, how ownership shifts and over what timeline lets the next generation grow into it while you step back gradually rather than all at once.
- 02
Plan the tax on the transfer
Transferring shares or business assets to family is generally a CGT event at market value, even when no money changes hands, and stamp duty can apply too. The small business CGT concessions and the right structure can soften this, but they need planning well before the transfer.
- 03
Balance fairness across the family
When one child runs the business and others do not, equal often is not the same as fair. Using other assets, life insurance or staged buy-ins to balance the estate prevents the resentment that quietly destroys both families and businesses.
- 04
Protect your own retirement
The business may be your largest asset and your main source of income. Whether the next generation buys you out over time, pays a wage or dividend, or you draw on super and investments, your retirement funding has to be locked in before you let go of control.
- 05
Get the structure and documents right
Trusts, companies and the way ownership is held all affect tax, control and protection through a handover. Clear shareholder agreements, buy-sell terms and an estate plan that lines up with the succession plan keep the transition orderly if circumstances change.
- 06
Prepare the next generation to lead
Ownership and capability are different things. The smoothest successions involve the next generation in decisions, finances and relationships well ahead of time, so they inherit the know how along with the keys.
How we help with succession
Business succession planning
We build the handover plan, structure the transfer and put the agreements in place so the business passes on cleanly.
ExploreWealth management
We make sure your retirement is funded and the family's wealth is balanced fairly across those in and out of the business.
ExploreTax planning and structuring
We manage the CGT, the small business concessions, stamp duty and the structure so the transfer is as tax effective as possible.
ExploreQuestions we hear most often.
Have a question that is not here? Call 07 3399 2300 or book a consultation and we will answer it directly.
Do I have to pay tax if I give the business to my children?
Usually yes. Transferring shares or business assets to family is treated as a disposal at market value for CGT purposes, even if no money changes hands, and stamp duty can also apply. The small business CGT concessions and the right structure can reduce this considerably, but they need to be planned before the transfer happens.
How do I keep it fair when only one child works in the business?
Equal and fair are not always the same. A common approach is to pass the business to the child involved in it and balance the estate for the others using property, investments, superannuation or life insurance. Planning this openly, well ahead of time, is the surest way to avoid conflict later.
How will I fund my retirement if I hand over the business?
Your income can come from a staged buy-out by the next generation, an ongoing wage or dividend, the sale proceeds, or your super and investments. The key is to lock in how your retirement will be funded before you give up control, so you are never dependent on the goodwill of the moment.
When should we start planning the succession?
Years ahead. A phased handover gives the next generation time to grow into leadership, lets the tax steps and structure be put in place properly, and gives you a graceful exit. Successions left to the last minute tend to be both more expensive and more stressful.
Hand it on without losing the business or the family.
We help you plan the handover, manage the tax, balance fairness and protect your retirement, so the business carries on and the family stays whole. Book a consultation to start the plan early.