Are You Under 35 and Have Will-Phobia?
The perception of being too young and not having enough assets is the leading cause of Will-phobia for those under the age of 35.
Today there are over 1 million people in New Zealand between 20-35 years old and it’s estimated that only 7% of them have a Will.
At Footprint we’re keen to bust the “I’m too young and don’t have enough stuff” myth wide open. So let’s kick this off with some interesting info:
If the total value of your stuff (aka assets) is worth $15k or more you should put a Will in place.
If the total value of your stuff adds up to less than $15k, your next of kin can divvy everything up as they see fit without a Will.
Assets can be lots of things such as a car, savings, bonus bonds and shares. There is also KiwiSaver, and any life insurance provided by an employer, which are considered assets and right off the bat could exceed $15k on their own.
Here’s how to save $5k or more
The process of divvying up your stuff if you were to unexpectedly pass away is called estate administration. On average when there’s a Will in place, estate administration costs $10k but without one, the costs go up by an estimated 50%. So you need to ask yourself: who would you want to receive that extra $5k? Someone you care about or the lawyer who gets to charge more fees?
The reason the cost goes up when there isn’t a Will is because the time it takes to divvy up your stuff (administer your estate) is much longer, which in addition to increased costs can be very distressing to those left behind.
To make things even worse, imagine all of your assets/stuff is in one box, that’s your estate and you get no say at all as to where that box ends up. New Zealand legislation has already decided that for you in a formula that has been around for donkey years;
How your assets are set up
Now here is the final drop of the hammer to blow these myths to smithereens. How assets are setup can make a big difference, whether it’s joint ownership of a car, the person named as the policy owner of your life insurance or if your bank account is in your name only or with someone else. All these things are decisions that you start making early in life and continue fine-tuning throughout your journey, because they all directly impact your estate, they also affect your Will. Boom!
So there you have it, myth busted! Wills are for the young, so get yours sorted because it’s cheap as chips and can save thousands if the worst were to happen.
