The Value in Having a Will at a Young Age
No one likes to think, let alone plan for when they will no longer be around, but it’s a reality that we all have to face.
Many people only start thinking about putting a Will in place when they’re much older, however contrary to popular belief, Wills aren’t just for the old folks with lots of money. As soon as you have $15,000 worth of assets you need a Will to ensure that your belongings are distributed the way you want them to be. Plus, having a Will can provide peace of mind knowing that those you care about are looked after when you're gone.
If you're unsure where to start, here are some tips on creating a Will at a young age.
Gather all the relevant information
The most common misconception we hear is “I don’t have a lot of stuff, my parents can sort it”. Unfortunately that’s not exactly how it works. Even those who say they don’t have a lot end up having more than they thought so the best place to start is by taking inventory of what you have.
Begin by making a list of all your major assets, this includes things like your KiwiSaver balance, any life insurance provided by your employer, savings, investments such as shares and bonds. If you’re an early go-getter and already have a house or business then you need to include those as well. Then, consider any items of significance you have, this could be things like your jewellery, special collections, art pieces etc. All of these things will need a place to go. If you’re unsure whether or not to include something, include it anyway.
Once you have your list you can also take some time to locate all the important documents related to these assets, such as the deed to your house or your insurance policies (these will be helpful for your executor later on).
Decide on the beneficiaries and appoint your executor
Now that you have all your assets together you need to decide who you want to pass them down to after you’re gone. This is the beauty of a Will, you have the power to make the decision.
Once you have decided on the beneficiaries, you will need to appoint an executor to carry out your wishes. The executor of your Will plays a big role in settling your estate, one of which is to ensure that your assets are distributed according to your instructions. You can either appoint a professional executor, such as a solicitor or a trustee company, or you can choose someone close to you, such as a family member or friend. Settling an estate is one of the most costly and time-consuming aspects of estate planning, so it’s important to choose someone who has the time and skills to carry out the role. To learn more about the role of an executor and how to choose one check out our blog post here.
Note that it’s always a good idea to appoint a backup executor to your Will particularly if you choose a family member or friend.
When creating a Will with Footprint, we offer the ability to appoint our third-party trustee partner, Perpetual Guardian, as your executor or backup executor. By appointing a professional you are effectively putting someone in charge that is unbiased, not conflicted, not making decisions whilst grieving and whose purpose is to follow your instructions as quickly as possible.
Make sure your Will is properly witnessed and signed
Once you’ve made all the appropriate decisions and you’ve created your Will, you’ll need to sign it in the presence of at least two witnesses. To ensure that your Will stands up in a court of law after you pass, this is by far the most important step. Without an accurately signed Will, your document could be at risk of being challenged in court. A key thing to remember when getting your Will signed is that your witnesses cannot be named in your Will as a beneficiary and they both must be over the age of 18. You can check out our Will signing checklist here.
When making your Will with Footprint, you can send it back to us signed and witnessed for our team of professional drafters to review and check that it’s all been done correctly before it’s stored away. There is no extra charge for this service.
Keep it in a safe and secure place
Your Will is not a document you’ll want to misplace. This document, which outlines your wishes for how your assets should be distributed after your death, can save your loved ones a great deal of time and anguish so it is important you keep it in a safe place, where it will not be damaged or lost.
You can send us your Footprint Will and we’ll store it for you in our offsite flood and earthquake-proof location for safe keeping. And if you have one of our subscription packages you can also keep a soft copy in your digital vault.
Once that’s all done, make sure you let your executor know where your Will is stored that way they will lose no time accessing it when the time comes. By taking these precautions, you can help to ensure that your final wishes will be carried out.
And there you have it. Whether you're younger, older, have a little or a lot, everyone needs a Will. If you don't have a will, take the time now to create one - it could save a lot of pain and hassle down the road for those you leave behind.
For more answers to your burning questions about Will creation, refer to our Q&A where we’ve answered your most common estate planning questions.
