The Battle for Family Wealth

Control is Everything - Wills, EPOAs & the Battle for the Family Wealth

When it comes to intergenerational wealth transfer, the most critical element isn’t the assets themselves; it’s who controls the structures that hold them.

Whether it’s a family trust, an SMSF, or a company, the person with the pen, the trustee, appointer, director, or attorney, controls the destiny of the family’s wealth.

Why Control Gets Lost

Too often, control passes unintentionally when a family member becomes incapacitated or dies. Without appropriate legal structures in place, unintended parties, including the Public Trustee, estranged family members, or in-laws, can gain access to significant family wealth.

Here are three control points frequently overlooked:

• Wills that don’t cover trusts or superannuation

• Generic Enduring Powers of Attorney (EPOAs) without successor provisions

• Companies without a nominated Successor Director

Case Study: The Taylor Family (South Gippsland)

Margaret Taylor, a widow, owned the family farm through a family trust and was the sole SMSF member. After she was diagnosed with dementia, her daughter, acting under a generic EPOA, transferred ownership of land to herself to “simplify the estate.”

Her brothers were blindsided. A legal battle followed, freezing the farm’s operations for over a year. Court costs exceeded $200,000. Had Margaret appointed a Leading Member EPOA and implemented Successor Director protocols, the farm and trust would’ve remained under her nominated bloodline controller, avoiding court entirely.

The Structures That Preserve Control

• Leading Member EPOA: Allows only the chosen bloodline successor to step in as trustee or director.

• Leading Member Corporate Trustee: Ensures that only family-nominated individuals can assume control of the SMSF or trust on incapacity or death.

• Updated Constitutions: Companies should include a clause to automatically appoint a Successor Director in the event of a Director's death or incapacity.

Checklist

• Have you appointed a legal and strategic EPOA?

• Do your company constitutions allow for automatic control transfer?

• Have you identified who becomes Appointor or Trustee after you?

Control doesn’t just happen; it’s built through structure. Don’t leave the keys to your legacy in the wrong hands.

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Nijo Antony

Director