Importance of sole company directors having a will.

Earlier this year, ASIC issued an info sheet for small businesses, especially those with sole company directors.

A solicitor has confirmed to me, that the assets in a trust do not form part of an estate when you pass away, so you need to appoint someone to take over as trustee/appointor.

To create or amend a will, a solicitor would need a copy of the trust deed and your instructions for who is to be appointed to take over the trust.

It does not have to be an executor of your will.

The role of the appointed person is to liaise with a solicitor and the company accountant to sell the assets, close bank accounts and wind up the company/trust.

The proceeds from the sale are then transferred to your estate for the Executor to process as part of your Will.

These experts will guide and assist the appointed person. As the winding up process should only take about 6 months, it won’t be a huge burden on the appointed person. (In my opinion.) But it will delay your estate being wound up.

This is not simply business, but also SMSF trusts as well. My parents are in their late 80’s and I was recently appointed as a director to negate this exact scenario happening.

As always, please seek you own legal advice.

Here is the link to ASIC INFO 73 which clearly states why Directors need a will.

https://asic.gov.au/for-business/running-a-company/company-officeholder-duties/importance-of-sole-company-directors-or-shareholders-having-a-will/?fbclid=IwY2xjawEReZRleHRuA2FlbQIxMAABHbI5pqiWje8sjGTIRqGjo9UTpPKQUjbMW1I-AmkFB-sxkANRVEFXurGeWg_aem_IocYsc5199N0pn5KDPILgw

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