Our Insights

In many family-owned enterprises, especially those across regional and rural Australia, the corporate structure is often taken for granted: multiple business units, long-standing trust arrangements, varied ownership of agricultural holdings, capital equipment, related party loans and shares. But when a major life event or change occurs, such as the death or incapacity of a family member, marital or family related breakdowns, that patchwork of structures can trigger confusion, dispute and potentially lost value and damaged relationships. At Thorntons we have witnessed once-solid businesses derail not because of operations, but because no one had mapped “who owns what”, and what measures are in place in event of death or incapacity.  

 The hidden complexity of trusts, ownership and authority 

Family businesses often accumulate layers of legal structures over time, such as companies, partnerships, discretionary trusts, fixed trusts and individual or joint ownership of key family assets across multiple generations. In Australia, trusts distinguish between legal ownership (the trustee) and beneficial ownership (the beneficiaries), which means that unless carefully documented, it may be unclear who truly controls the asset, who benefits and who has authority. New regulatory pressure is building around the structure of trust deeds and the validity of prior changes to those deeds. This means that a missing link in your ownership chain can become a major trigger for disruption, cost or dispute. 

 Don’t wait for the life-changing trigger 

Changes come in many forms, such as a partner or parent passes away, a serious illness incapacitates key decision-makers, a property is lost to fire or flood, a child exits the business, divorce, or newer generations take different directions. In each case the absence of a clear roadmap – who has authority, which entity owns the business, which entity holds the land or other key assets, who has signing rights – adds stress and risk to everyone. Instead of focusing on what matters (running the business, dealing with the disruptive event), the family ends up hunting for trust deeds, company registers, wills and other estate documents.  

 Why early mapping of structures brings clarity and resilience 

For multi-entity family businesses, Thorntons has developed planning tool to capture and map asset ownership, entity structures, and status of estate planning documents. By working collaboratively with the business owners over time, we build a clear “ownership and control map” – covering every family member and entity comprising the family business. That clarity pays dividends. When something occurs, you don’t scramble; you respond. Key outcomes include clearer understanding, reduced stress for the family; faster decision-making; and better protection of value; and of planned outcomes.  

 What the process involves — and why time makes the difference 

This isn’t a one-day fix. The process begins with discovery: trust deeds, company registers, historical land purchase documents, estate planning documents etc. We then overlay “what if” scenarios (e.g., death or incapacity of a family member) and test authority pathways.  

 Next comes structuring and documenting – ensuring all trusts have clear appointors, guardians and trustees. Ensuring provision is in place to appoint successors in event of death or incapacity. Ensuring provision is in place to pass on critical business and non-business assets to spouse or next generation.  

 Thorntons’ offers succession planning and estate planning work as core services to our clients. The reason we emphasise the importance of completing this work “well in advance” is that when crisis hits, the time to get control is before you need to use the control. 

 Putting peace of mind into practice 

Family business owners who invest time and effort into this preparatory mapping often say the peace of mind is significant. They can focus on what matters, such as running the business, and supporting the people. For the broader stakeholder group – family members, lenders, – the clarity of structure and authority provides certainty and confidence. 

 About Thorntons 

Thorntons is a leading accounting and business-advisory firm in Western Australia, with deep experience working with multi-generational, family-owned enterprises across agribusiness, manufacturing, mining, and regional operations. Their services include accounting & tax compliance, business advisory (including budgeting, cashflow, benchmarking and succession planning) and estate & wealth planning. Thorntons’ team take a long-term relationship view, becoming trusted partners to businesses before a crisis, not waiting for it to occur before doing the work. 

 Call to action: free consultation 

If your family business holds multiple trusts, companies, farms, equipment, loans or complex ownership arrangements, and you’d like to move from uncertainty to clarity – contact Thorntons for a free 30-minute consultation with one of their experienced partners. Visit www.thorntons.biz or call 08 9421 1722. Take the step today so when the unexpected happens, your business is ready.