Estate planning isn’t just for the wealthy—it’s a smart move for any Australian who wants to protect their legacy, minimise family disputes, and make life easier for those left behind. With several policy updates rolling out in 2025, now’s the time to get on the front foot with your estate plan.
Why Estate Planning Matters More in 2025
Australians are living longer, property values are surging, and blended families are increasingly common. Add in superannuation changes and the shifting legal landscape, and estate planning is no longer a set-and-forget affair. Here’s why you should review your arrangements this year:
- Superannuation rules: The 2025 government update clarifies who can receive death benefits, with new reporting obligations for self-managed super funds (SMSFs).
- Digital assets: New laws recognise digital assets (think crypto and social media accounts) as part of the estate, requiring explicit instructions in your will.
- Family law intersections: Updated Family Provision Act rules mean estranged children and stepchildren may have stronger claims on estates.
Without a clear plan, your estate could be subject to higher taxes, delays, or costly disputes. The bottom line? Estate planning now is an act of care for your loved ones’ future.
Key Components of a Modern Australian Estate Plan
Estate planning in 2025 is about more than just writing a will. Here are the core elements every Australian should consider:
- Will: Outlines who inherits your assets. In 2025, digital signing and storage are now legally recognised in most states.
- Enduring Power of Attorney: Appoints someone to make financial and legal decisions if you lose capacity.
- Advance Care Directive: Specifies your medical care preferences if you become unable to communicate them.
- Superannuation nominations: Binding death benefit nominations have clearer rules, ensuring your super goes to the intended recipient.
- Testamentary trusts: Useful for protecting assets for minors, vulnerable beneficiaries, or providing tax flexibility.
Importantly, joint assets, family trusts, and SMSFs often fall outside the will, so a holistic approach is essential.
Practical Steps and Real-World Examples
Let’s make this real. Consider Lisa, a Sydney-based business owner with two adult children and a family trust. In 2025, she:
- Updates her will to include digital assets and her growing cryptocurrency portfolio.
- Reviews her SMSF binding nomination to ensure her children—not her ex-partner—inherit her super.
- Sets up a testamentary trust so her son, who has a disability, receives ongoing support without impacting his Centrelink benefits.
Meanwhile, the Smith family faces a challenge: a stepchild contests their late father’s estate under the strengthened Family Provision Act. This highlights the need for clear documentation and communication with all potential beneficiaries.
Here’s your quick action list for 2025:
- Audit your assets—including digital and overseas holdings.
- Review and update your will, superannuation nominations, and powers of attorney.
- Talk to your family about your wishes (it can prevent disputes later).
- Consult a professional for complex situations, especially if you have a blended family, business interests, or significant super.
Tax and Policy Updates to Watch
The ATO’s 2025 guidance on capital gains tax (CGT) for inherited property now clarifies exemptions when a main residence is sold within two years. There are also new thresholds for deceased estate tax returns, and reporting of foreign assets is now mandatory above $50,000 AUD.
If you’re a small business owner, recent policy tweaks allow certain business assets transferred through a will or testamentary trust to retain small business CGT concessions—potentially saving heirs thousands.
Conclusion: Estate Planning Is a Gift to Your Loved Ones
Estate planning isn’t just a legal exercise—it’s a way to protect your family, avoid unnecessary tax, and ensure your wishes are respected. With 2025’s policy changes, it’s never been more important to take action. Start the conversation, update your documents, and set your legacy on the right track.
