---
title: "For Business - Sapience Financial"
description: "Modern Estate Planning for Business is first understanding which business structures are seen as one-and-the-same with the business owner, and whic are not."
url: "https://sapience.com.au/services/modern-estate-planning/for-business-owners"
date: "2026-06-17T08:49:47+00:00"
language: "en-GB"
---

#  For Business Owners

 ![older and younger male business people discussing problem to solve](https://sapience.com.au/images/site-pics/modern-estate-planning-for-business-owners-sapience-financial.jpg)## Modern Estate Planning – for business

- Modern Business is about continually making decisions.
- Modern Estate Planning is about planning for who can legally make those decisions for you, when you cannot.

**Modern Estate Planning for Business** is really about first understanding which business structures are seen as **one-and-the-same** with the business owner, and which business structures are seen as **separate-and-distinct** from the business owner.

### The business structure makes the difference

This is because only some business structures can be manged using estate planning tools like a [Power of Attorney](https://sapience.com.au/index.php?option=com_content&view=article&id=407&Itemid=930) or a [Power of Enduring Guardianship](https://sapience.com.au/index.php?option=com_content&view=article&id=443&Itemid=931). Other business structures, like a [Company](https://sapience.com.au/index.php?option=com_content&view=article&id=175&Itemid=739), a family trust and SMSF, cannot be managed via these planning tools and need their own special legal documentation to protect them if their business owners are unable to make decisions.

[![Introducing Modern Estate Planning for modern families](https://sapience.com.au/images/video-thumbs-with-play-icons/small-thumb-play-icon-understanding-modern-estate-planning-for-modern-families-sapience-financial.jpg)](https://youtu.be/dwxiu-omCnY)

### For Sole Traders and General Business Partnerships

You probably already know that a;

- **Personal Power of Attorney** is a legal document where an individual can appoint someone else to make key administrative and financial decisions for them, if they themselves were ever to be unable to make important decisions due to sickness, injury or absence.
- A **Enduring Power of Attorney** (or Guardianship) is needed to make medical and lifestyle decisions for another person when they have lost their own mental capacity to do so.

When you get your personal estate planning documents in place, make sure you consider the implications for your business decisions too.

### For Company Directors and Multi-Owner businesses

If you’re a Director of a Company, you may not know that both a Power of Attorney or Enduring Power of Attorney (or Guardianship), does not extend to cover the duties of a Company Director.

- A [Company Power of Attorney](https://sapience.com.au/index.php?option=com_content&view=article&id=440&Itemid=986) is required to protect the needs of a Company.

**The Law**: The Corporations Act 2001 (Cth) requires a company to have at least one director. Without a director, a company in breach of the Act, and the business may not be able to operate properly. For these reasons alone, you need to have a plan in place if you are not able to act as a director of your company.

### What is a Company Power of Attorney?

A company acts through its directors and Company Directors sign documents and make decisions for the company.

- A **Company Power of Attorney** is a legal document where a company appoints a human (or another company or a combination of people and companies) to act and sign documents on the company’s behalf.

In contrast, a human POA (enduring or medical) only appoints humans to act on behalf of another.

**Insight**: A Director is the decision maker of a company and this role cannot be inherited, gifted or addressed under a personal Power of Attorney.

###  The Difference between Personal Estate Planning & Business Estate Planning

Personal Modern Estate Planning is about putting legal documents in place today where you nominate ahead of time, a person to act on your behalf later, if you cannot make decisions, due to an unexpected sickness, illness or absence. Business Modern Estate Planning is about building a business continuation plan if the business owner cannot make decisions, due to an unexpected sickness, illness or absence.

Modern Estate Planning for Business is *business structure specific* so the type of business structure in place determines whether personal estate planning documents **or** company estate planning documents is needed to build the business continuation plan.

- **Sole Traders** and **Partners** are usually seen as **one-and-the-same** with the business structure. This means their personal control of the business can usually be exercised by others if needed through the use of a Power of Attorney or a Power of Enduring Guardianship document.
- **Company Directors** are seen as **separate-and-distinct** from the business ownership**.** This means the power of a company Directorship cannot be exercised by others or transferred or 'gifted' by a Will, a personal Power of Attorney or Power of Guardianship document.

All these documents are available to be built and purchased through our Sapience Secure Customer Portal with the assistance of your financial adviser.

 ### Different Types of Will Documents

![different types of Will documents sapience financial](https://sapience.com.au/images/blog-assets/charts/different-types-of-Will-documents-sapience-financial.svg)

### How we can help

This problem has a simple fix. If you are the sole shareholder and director of a private company, it’s time you planned for what will happen to your business if you cant make decisions due to sickness, injury or absence, lose the mental capacity or even unexpectedly pass away. If your Accountant or Financial Adviser hasn’t raised this question with you, perhaps you might need a new one.

Contact us for a confidential chat about your needs.

---

###  Related: Modern Estate Planning

- [Singles](https://sapience.com.au/index.php?option=com_content&view=category&layout=blog&id=127&Itemid=960) - single and single again
- [Families](https://sapience.com.au/index.php?option=com_content&view=category&layout=blog&id=131&Itemid=828) - couples, partners, defacto, married, possibly with kids, CNM
- [Small Business Owners](https://sapience.com.au/index.php?option=com_content&view=category&layout=blog&id=125&Itemid=829) - side gigs, sole traders, partnerships and companies

1. [ SMSF Trustee Corporate Power of Attorney ](https://sapience.com.au/services/modern-estate-planning/for-smsf-trustees/smsf-trustee-corporate-power-of-attorney)

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