When most people think about estate planning, they think about a will.

A will is important. It determines what happens to your assets when you pass away. But in over 30 years of advising pharmacy owners and their families, I’ve seen time and again that a will, on its own, is not enough.

Estate planning is not only about what happens after death. It is also about managing important changes that can happen while you are still living.

Wills don’t deal with loss of capacity

One of the biggest misconceptions is that a will covers all contingencies. It doesn’t.

A will only operates after death. It does not deal with a situation where you are alive but no longer able to make decisions due to illness, accident or cognitive decline.

Without an Enduring Power of Attorney (POA), your family might need to apply to a tribunal or court to manage your affairs. This process can be slow, costly, and emotionally draining, especially when your family is already under stress.

Similarly, in business structures such as pharmacy partnerships, the death or incapacity of a partner can have significant implications. If the documentation isn’t clear, surviving partners and families can find themselves navigating uncertainty at precisely the wrong time.

Good planning means ensuring that:

• You have an appropriate Enduring Power of Attorney in place
• Your partnership or shareholder agreements deal with incapacity and death
• Your personal and business structures align.

Giving while you live 

At a recent presentation, I spoke about something I strongly believe in: “give while you live.”

Many people accumulate assets throughout their lifetime with the intention of passing them on. There is nothing wrong with that. But there can be significant benefits in providing support earlier, when it can make the greatest impact.

Helping a child purchase a home, assisting with education costs, or supporting a business opportunity can be life-changing at the right time.

There are also practical advantages:

• You can see the benefit of your giving
• You establish a clear and consistent pattern of intention
• You reduce the size of your estate and potential complexity later.

Where estates are contested, a demonstrated history of giving can help show that your will reflects a long-standing pattern rather than a sudden decision.

From a tax perspective, Australia does not have an inheritance tax. However, gifting can have implications depending on the type of asset and your circumstances. For example, transferring certain assets may trigger capital gains tax events and Division 7A issues. Centrelink and aged care assessments can also be impacted by gifting under deprivation rules.

This is not an argument against giving. It is simply a reminder to plan your giving carefully.

Retaining enough for aged care 

While generosity is admirable, prudence is essential.

Aged care is often more expensive than people expect. Entry into a residential aged care facility typically involves:

• A refundable accommodation deposit (often a significant lump sum and commonly referred to as ‘RAD’)
• Ongoing daily care fees and living costs.

Many facilities offer payment arrangements or ‘loan’ style options, but these can become expensive over time. In most cases, if you can pay the entry costs yourself, often by selling your home, you will have more certainty and flexibility.

I have seen families hold onto a home on the assumption that the person entering care will return. In reality, this is rare. Clear-headed decisions at this stage can reduce financial pressure later.

The key is balance: support your family while you are alive, but retain sufficient assets to maintain your own dignity and quality of care.

Identity, documentation and practicality 

Another increasingly common issue is proof of identity.

Banks must follow strict ‘Know Your Client’ rules. If your identification is outdated, inconsistent, or hard to verify, access to your funds can be delayed or restricted, even if there is no wrongdoing.

For those who no longer drive or travel, obtaining a government-issued Proof of Age photo ID can be a simple but powerful step. This is best done at the time of (or before) surrendering a Drivers Licence and/or expiry of your passport.

Consistency across names, trusts, bank accounts and legal documents is also essential. Small inconsistencies can create disproportionate complications.

Trust structures themselves require careful review. Changes in tax rates, trustee arrangements or beneficiary circumstances can affect how income is distributed and taxed. These structures should not be left untouched for decades.

Planning for transition, not just death 

Over the years, I have shared in the triumphs and setbacks of many client families. The most successful transitions are rarely accidental. They are the result of early conversations, documented intentions and structured planning.

Estate planning is not morbid. It is responsible.

It is about:

• Protecting your family
• Preserving your business legacy
• Reducing conflict
• Maintaining control for as long as possible.

A will is an important starting point. But it is only one part of the broader picture.

If you have not reviewed your estate plan recently, including your powers of attorney, business agreements, gifting strategy and aged care funding, now may be a good time to do so.

Because transition is inevitable. Planning for it is optional.

For more information about this topic, you’ll find my article on Estate planning – where to start? A good next step is to get in touch.

About the author 

Graeme Hodge is Founder and Director at Holman Hodge. He has been providing personalised advisory services to pharmacy enterprises and groups for more than 30 years. The longevity of his client relationships has seen him share the triumphs and support the setbacks of both their business and personal lifecycle, developing his specialty of life and business transition.