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One decision that divided a family
When it comes to passing on the family farm, getting succession planning wrong can cost far more than money.
I was recently waiting for a function to start and, while flicking through a newspaper, came
across a headline that stopped me: "One farm, seven children", published in The Senior.
Given the work we do with farming families at WLW Group, I read on.
The story was about a mother who transferred the family farm to one of her seven children during her lifetime, without discussing the decision with the other six.
What struck me wasn't the decision itself. There can be perfectly good reasons for leaving a farm to one child.
It was what one of the daughters said afterwards.
She wasn't necessarily upset about missing out financially. What hurt most was the secrecy, the lack of trust, and the fact that the family had never been included in the conversation.
It got me thinking about how easily similar situations arise when families haven't properly discussed their succession plans.
The real issue isn't always who gets what. It's how those decisions are made, communicated and implemented.
For many farming families, the farm isn't just another asset. It represents generations of hard work, sacrifice and family history, often the financial future of the next generation.
One poorly planned decision can undo all of that.
Fair doesn't always mean equal
One of the hardest questions farming families face is how to treat children fairly when not all of them have been involved in the business.
Consider a family with three children.
One has spent 25 years working on the farm building the business, accepting modest wages, making personal sacrifices.
The other two pursued careers elsewhere with little involvement in the operation.
Should the farm be divided equally? Should the farming child receive more? And how do you recognise their contribution without leaving others feeling overlooked?
There isn't a simple answer.
Dividing equally might sound fair, but it may not be commercially practical. If the farming child needs to borrow millions to buy out their siblings, that debt could cripple the business. They might need to sell valuable farmland just to fund the inheritance.
On the other hand, transferring everything to one child without considering the others can create resentment, damaged relationships and years of legal disputes.
Fair doesn't necessarily mean equal. But fairness requires careful thought, proper planning, and open communication.
Transfer now or leave it in your will?
This is one of the biggest decisions farming families face, and something we regularly discuss with clients.
Both approaches have merit, but they carry very different financial, tax and legal consequences.
Option 1: Transferring during your lifetime
Transferring the farm while you're alive provides certainty for the next generation. If your son or daughter has spent 20 years building the business and is ready to take over, ownership lets them invest, plan, and move forward with confidence.
It also lets you oversee the transition and step back gradually.
However, there are critical considerations:
Capital Gains Tax (CGT)
Many assume you can simply gift the farm without tax consequences. That's not necessarily true. For CGT purposes, transferring property for less than market value can still be treated as a disposal at market value, meaning CGT may arise even without receiving payment. Small business CGT concessions may help, but they need careful assessment
Stamp Duty
Queensland and NSW offer concessions for qualifying family farm transfers, but eligibility depends on specific criteria including relationships, land use and state legislation
Retirement Security
If the farm represents most of your wealth, what happens after you transfer it? Will you have enough income? What about medical expenses or aged care? Don't compromise your financial independence to facilitate succession
Loss of Control
Once transferred, you may lose legal control. What if the child experiences financial difficulties, relationship breakdown or business failure? Could the property become exposed to creditors or family law claims?
Option 2: Leaving through your will
Retaining ownership until death provides flexibility, particularly if you're not ready to give up control.
There's also an important tax distinction: Australia generally doesn't trigger CGT when assets pass to beneficiaries on death. The capital gains position typically carries over, with CGT arising when the property is eventually sold.
But wills have challenges too:
What if children contest the will?
Will the farming child have funds to compensate other beneficiaries?
Who manages the business during estate administration?
What if you become incapacitated first?
Does the will reflect the farm's actual ownership structure?
A will is essential, but it isn't a complete succession plan. And importantly, a will only controls personally owned assets. If the farm is held through a trust or company, separate arrangements are needed.
Could transferring early prevent a dispute?
Some assume transferring the farm during their lifetime prevents it from being challenged after death.
That isn't necessarily correct.
NSW's notional estate provisions can, in certain circumstances, allow courts to consider property transferred before death when determining family provision claims. Queensland operates differently.
Transferring early shouldn't be viewed as a guaranteed way to avoid disputes.
Sometimes the best approach is both
Succession planning doesn't have to be all or nothing.
Parents might gradually transfer management while retaining land ownership. Or transfer certain assets during their lifetime and leave others through their estate.
Consider this scenario:
An $8 million farming property. Three children. The eldest son has worked on the farm for 20 years; his two sisters have established careers elsewhere.
The parents want their son to continue operating the farm but also want to provide meaningfully for their daughters.
Rather than dividing the farm three ways or transferring everything to one child, the family could:
Retain certain assets for retirement security
Provide for daughters through other investments or insurance
Gradually transfer ownership or management to the son
Consider existing debt, cash flow and sustainability
Explore available tax concessions and restructuring options
The objective: preserve the farming business, secure the retiring generation's future, and achieve an outcome that's fair and workable for everyone.
The biggest mistake? Waiting too long
Succession planning is often something families intend to address "one day."
Unfortunately, that day sometimes arrives after an unexpected death, illness or family disagreement when options are limited.
One recurring challenge we see: parents have a clear idea of what they want, but they haven't communicated or documented it.
Children may have spent years in the business assuming they'll inherit it. Other family members may have entirely different expectations. Sometimes parents themselves haven't agreed.
The longer these conversations are avoided, the greater the risk that assumptions become expectations, and expectations become disputes. A proper succession plan doesn't mean everyone agrees with every decision. But it means decisions have been carefully considered, reasoning can be explained, and arrangements are properly documented.
Six questions every farming family should ask
If you own a family farm or business, consider:
Who will eventually take over? Have you decided, and do they actually want to?
Have you spoken to your children? Do they understand your intentions, or are they making assumptions?
What is fair to everyone? Have you considered contributions from those working in the business and how others might be provided for?
Can you afford to retire? Will you have sufficient income and independence after handing over the farm?
Have you considered tax and legal consequences? Would transferring assets now produce a different outcome than leaving them through your will?
What happens if something unexpected occurs tomorrow? Who takes control of the farm, trusts and other assets?
If you're uncertain about the answers, it may be time to start the conversation.
Don't let your family farm become the next family dispute
The story of one farm and seven children highlights something easy to overlook.
Succession planning isn't just about transferring property or minimising tax.
It's about protecting wealth that generations have built, ensuring the business can continue, and preserving family relationships along the way.
At WLW Group, we work with farming families and business owners to navigate the financial, tax and structuring aspects of succession planning. We also work alongside legal advisers to ensure arrangements are properly documented and supported by appropriate estate planning strategies.
A successful succession plan isn't simply about deciding who gets the farm. It's about deciding when, how and under what arrangements ownership and control should pass, without compromising your retirement, the business, or your family's relationships.
And perhaps the most important lesson from that newspaper article?
"Sometimes it's not the inheritance that divides a family. It's the conversations that never happened."
Ready to start the conversation?
If you've been putting off discussions about your family farm or business succession, we're here to help you work through the options and develop a practical plan that makes sense for your family.
Nijo Antony
Director
Inspired by "One farm, seven children", an article by Carla Mascarenhas published in The Senior on 3 October 2026. The original story highlights the personal and family consequences that can arise when succession decisions are made without open communication.
