Navigating Estate Litigation For Business Owners
Discover how Direct Lawyers’ experienced estate litigation lawyers can help business owners navigate the challenges of succession planning
Estate litigation can quickly become complex for business owners, especially when company shares, trusts, or partnership arrangements are involved. In Brisbane, we regularly see disputes arise because business structures and estate plans don’t align - or because key decisions were never documented.
At Direct Lawyers, our experienced estate litigation lawyers work closely with Queensland business owners facing these issues. In this blog, we unpack the most common problem areas and show you how to manage business-asset protection, succession planning, and the unique risks that arise when a business forms part of an estate.
The intersection of business and estate planning
For business owners, personal and business assets are often tightly connected. In Queensland, we regularly see disputes arise when a will, company structure, trust deed, or shareholder agreement all point in different directions.
Without proper estate planning, your business can be left exposed - slowing operations, triggering family conflict, and putting hard-earned value at risk.
Below are the issues we most commonly help business owners manage
1. Complex asset structures
Most businesses hold a mix of assets - property, equipment, intellectual property, goodwill, shares, or trust interests. Not all of these automatically form part of your estate.
In our experience, disputes often arise when:
Assets are incorrectly assumed to be “personal property”
Beneficiaries don’t understand company or trust structures
Valuations are unclear or outdated
The will doesn’t align with the business structure
A clear, up-to-date estate plan helps avoid arguments about what you actually own, what belongs to the business, and how each asset should be handled.
2. Succession planning dynamics
Passing on a business is never as simple as naming someone in a will. Leadership, management, shares, voting rights, and day-to-day operations all need to be considered.
The business disputes we see most often occur when:
A business partner is suddenly dealing with an unprepared beneficiary
Roles and responsibilities haven’t been documented
Family members expect ownership or control
A will contradicts a shareholders’ agreement or trust deed
A thoughtful succession plan protects the business, reduces tension between family and business partners, and ensures the right people are in the right roles.
3. Tax or structural implications
When a business forms part of an estate, tax issues can significantly change the outcome for beneficiaries. This is especially true where trusts, companies, or multiple entities are involved.
Without planning, business owners risk:
Avoidable tax liabilities
Delays in accessing or distributing assets
Disputes over valuations
The forced sale of business assets to cover tax obligations
Working through these risks early helps preserve the value of the business and makes the estate easier to administer.
Why a strong estate plan matters for business owners
A solid estate plan protects more than your personal assets. It also protects the business you’ve built.
In our work with Brisbane and Queensland business owners, we often see that even small gaps in planning can lead to family conflict, uncertainty for business partners, or unnecessary tax issues.
The strategies below form the core of a practical and reliable estate plan.
1. Protect business assets with the right structures
Business assets need extra attention in estate planning, especially when companies, trusts or multiple entities are involved. We regularly help clients:
Separate personal and business assets
Confirm who legally owns what (and who doesn’t)
Strengthen structures such as holding companies or trusts
Update documents so ownership and control are clear
Effective asset protection strategies reduce the risk of disputes, protect business value and keep operations steady during estate administration.
2. Lock in certainty with a clear buy-sell agreement
For businesses with more than one owner, a buy-sell agreement is essential. Many disputes we see could have been avoided if this document had been updated or drafted properly.
A good buy-sell agreement sets out:
What happens if an owner dies or loses capacity
How the owner’s interest will be valued
Who can buy or inherit that interest
How the transfer will be funded
This gives surviving owners and family members certainty and keeps the business running without interruption.
3. Use life insurance to support succession and liquidity
Life insurance is often the simplest way to protect a business from financial pressure after an owner passes away. It can:
Fund a buy-sell agreement
Provide liquidity to cover tax or debt
Compensate family members fairly
Prevent the forced sale of business assets
We often recommend life insurance where the business will need cash quickly to maintain stability.
4. Align your documents and communicate your intentions
Most business-related estate disputes start with confusion rather than bad intentions. To avoid that, it’s important that:
Your will, shareholder agreement, trust deed and company documents all match
Your executor understands their responsibilities
Your business partner knows the succession plan
Your family understands what to expect
Clear communication reduces stress, protects relationships and keeps the business functioning smoothly when it matters most.
How can I mitigate the risks of estate litigation?
Estate disputes involving a business can become costly, stressful and disruptive.
The steps below are the most effective ways we help business owners reduce the risk of litigation and protect the future of their business.
1. Review and update your estate plan regularly
Businesses change. Structures evolve. People move into new roles. Estate plans need to keep up.
We often see disputes arise simply because a will or shareholder agreement hasn’t been updated for years. Regular reviews help ensure your estate plan still reflects:
The current business structure
Any new assets, partners or entities
Changes in family circumstances
Updated tax or legal requirements
A quick review every few years can prevent major conflicts down the track.
2. Include dispute resolution options in your plan
If disagreements do arise, building dispute resolution options into your estate plan can save significant time, money and stress.
This may include:
Mediation clauses
Arbitration agreements
Clear escalation pathways for business partners and family members
These tools encourage early, practical resolution and help preserve both the business and personal relationships.
3. Get tailored guidance from an experienced estate litigation lawyer
Estate planning for business owners is complex, especially when trusts, companies and multiple stakeholders are involved.
Our team regularly advises Brisbane business owners on how to:
Protect business assets from disputes
Align the will, company documents and trust deeds
Structure buy–sell arrangements
Establish clear, workable succession plans
This tailored advice helps reduce risk and gives business owners confidence that their intentions will be carried out.
What can go wrong (and right!) in business estate matters
Real scenarios can show how much difference the right planning can make. Below are two simplified examples based on the types of matters we commonly see with Brisbane business owners.
Example 1: When a lack of planning disrupts the business
A long-running family business in Brisbane lost its founder unexpectedly. There was no clear plan for who would take over, and the will didn’t match the company structure. The founder’s children disagreed about ownership and management, and the dispute quickly escalated.
As a result:
The business struggled to operate
Decisions were delayed
Legal costs increased
Relationships within the family deteriorated
This is a common outcome when key documents are outdated or unclear.
Example 2: Successful transition through proactive planning
Another Brisbane business - a mid-sized manufacturing company - successfully navigated a generational shift with a proactive approach to planning. A clear succession plan, updated documents and a buy–sell agreement had all been prepared well in advance.
When the founder passed away:
The incoming director moved into their role immediately - all documents aligned
Supplier and customer relationships remained stable - continuity planning was in place
Family members understood their entitlements - reducing tension
The business partner had a pathway to buy the founder’s shares - avoiding valuation disputes
Good planning doesn’t remove grief, but it removes confusion - and that protects both the business and the people involved.
Protect your business legacy with Direct Lawyers
A strong estate plan gives your family, business partners, and successors the clarity they need to keep the business running smoothly. For many Brisbane business owners, it’s the difference between a stable transition and a stressful dispute.
At Direct Lawyers, we work closely with business owners to ensure their will, company documents, and succession plans all align.
This alignment:
Helps avoid misunderstandings,
Supports smoother handovers, and
Strengthens the long-term future of the business.
If you’d like tailored advice or want to review your current planning call (07) 3703 1888 or book a free 10-minute discovery call.