Why estate and succession planning matter for medical professionals

As a medical practitioner, you pride yourself on being meticulous, analytical, and aware of risks vs outcomes. Qualities that define your profession. Yet without an estate plan, everything you’ve built remains vulnerable. Your business, your assets, and your legacy deserve the same level of diligence as being a clinician.

Estate planning is often perceived as simply deciding who inherits your assets. In reality, it is a comprehensive legal strategy that protects your interests during life and ensures your wishes are carried out after death.

For medical professionals, this extends beyond personal wealth — it includes safeguarding your practice, managing complex structures, and ensuring continuity for patients and staff.

A well-structured estate plan typically includes:

• a Will;
• enduring Powers of Attorney (financial and personal);
• appointment of a Medical Treatment Decision Maker; and
• superannuation Death Benefit Nomination.

Each document plays a distinct role in ensuring your affairs are managed if you become incapacitated or pass away.

What are the implications of no Will?

There were reports in 2024 that an average of 52% of Australians die without a Will.

If you die without a valid Will, you die intestate. In Victoria for instance, in these circumstances your estate will be distributed according to Part IA of the Administration and Probate Act 1958 (Vic). These provisions follow a strict formula, prioritising spouses, children, and other relatives — without regard for your personal wishes, specific gifts you seek to make, estranged relationships, or business succession plans.

The consequences are significant:

• an appropriate person must apply to the Court and must be accepted as administrator for your estate, causing delays and additional costs;
• disputes over entitlement can arise, adding stress for your loved ones and wasted costs of your estate; and
• there is no flexibility — your estate is divided according to legislation, not your intentions.

For business owners, intestacy can be particularly problematic. Shares in a company, trust interests, and control of your business do not automatically transfer. Without clauses in your Will for share transfers, trustee appointments, or continuity plans, your business could face governance, operational and management issues, disputes, or even forced sale.

In short: intestacy means default rules apply, and your wishes and business succession plans are ignored. Including specific clauses in your Will — such as appointing succession trustees or business guardians — is essential to avoid these problems.

Succession planning: protecting the practice you built

If you own or co-own a medical practice, succession planning is critical. It prepares for the transfer of leadership, ownership, and operational control in the event of retirement, incapacity, or death. Without it, your practice may face legal disputes, operational chaos, or even closure.

Key questions to consider:

• Who will take over the practice or business?
• Are partnership or shareholder agreements current?
• Do you have buy-sell agreements and key person insurance in place?
• Does your Will align with your business structure (company, trust, partnership)?
• Have you appointed someone to make urgent decisions if you’re unavailable?

Succession planning isn’t just about business continuity — it’s about protecting everything you’ve built. It ensures your practice runs smoothly, patients receive uninterrupted care, and your team has clear direction. Beyond operations, it shields your beneficiaries from costly disputes and prevents unnecessary financial loss.

Essential documents during life

Estate planning also includes during life decisions when you have lost decision making capacity due to illness or injury. Powers of Attorney and medical decision-making appointments are vital for managing your affairs during life.

• An Enduring Power of Attorney: appoints someone you trust to handle financial and personal matters if you’re unable to do so.
• An Appointment of Medical Treatment Decision Maker: ensures health/medical decisions reflect your wishes.
• Corporate Powers of Attorney: authorise someone to manage urgent business matters — such as payroll, supplier contracts, and compliance — if you’re incapacitated or away.

Testamentary trusts: protecting your legacy

A testamentary trust, activated upon your death, is a powerful tool for protecting your family and business. It offers:

• protection of inheritance from creditors and family law disputes;
• tax-effective income distribution (including to minors at adult tax rates); and
• flexibility in managing business transitions and asset distributions.

Your Will can include detailed instructions on how the trust operates, who the trustees and appointors are, and what powers they hold.

Superannuation: a common trap

Superannuation doesn’t automatically form part of your estate. Incorrect nominations can lead to tax consequences, disputes, or loss of benefits. Professional advice is essential to ensure your superannuation aligns with your broader estate plan.

Align your estate plan with your business structure

One of the most overlooked aspects of estate planning is ensuring your Will aligns with your business structure. A Will only controls assets you personally own. Many business assets are held in companies or trusts, which operate under separate legal rules. These assets do not automatically form part of your estate and cannot simply be gifted through your Will.

By reviewing your business structure and aligning it with your estate plan, you ensure the right people take over management and control upon your death or incapacity. This alignment protects your business assets, safeguards your beneficiaries, and maintains long-term stability.

The bottom line

An experienced estate lawyer will review your company constitutions, trust deeds, superannuation arrangements, and other documents to identify conflicts with your Will. They will then craft a tailored plan that integrates seamlessly with your existing structures, ensuring your wealth and intentions are preserved exactly as you envision.

Estate and succession planning isn’t optional — it’s a professional responsibility and a legal necessity. Your patients, staff, and family rely on your foresight. If you haven’t reviewed your plans recently, now is the time. The decisions you make today will shape the future for your business and your loved ones.

Sarah Kabiri is a Wills and Estates Lawyer at Burke Lawyers in Malvern, Victoria. With experience across legal and healthcare-adjacent industries, Sarah has seen firsthand how the absence of proper planning can disrupt families, businesses, and professional legacies.

Legal Disclaimer: This article is for general informational purposes only and does not constitute any legal advice or services. Readers should seek independent qualified legal advice relating to their specific circumstances of concerns and should not apply, act on, or rely on any of this advice otherwise.

The statements or opinions expressed in this article reflect the views of the authors and do not necessarily represent the official policy of the AMA, the MJA or InSight+ unless so stated. 

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