To Will or Not to Will?
You know that old saying “Where there’s a will, there’s a way”… well, that’s a lot truer than you think.
What is a Will?
A Will is most commonly described as a list of instructions you leave behind that lets your family know who gets what when you pass away. Basically it allows you to;
protect your loved ones from a stressful, long drawn out and expensive estate administration process in the event that something happens to you,
state who gets what of your estate, such as your life insurance, KiwiSaver and special personal items like your signed All Blacks Jumper
express your funeral wishes; no-one said funerals have to be boring, we have seen all sorts, including a request for an actor playing the grim reaper!
name your preferred guardian if you have any children
leave a bequest to a charity close to your heart
In short, a Will helps make sure your intentions are clear, and no one gets left out unintentionally.
When and why you need a Will
A Will is important for anyone over the age of 18 and especially important as you start accumulating assets (items of value) or growing your family. As soon as all your stuff reaches a total value of $15k, you need a Will in order for those assets to be distributed. This could be one item or a combination of items like your car + your savings + KiwiSaver. Most people don’t realise how quickly their KiwiSaver adds up!
Growing your family, whether it’s getting married, remarried, having children, stepchildren or adopting a furry friend, are all important reasons to get a Will sorted ASAP. In your Will, you can name a guardian for any children including your pets. You also need a Will if you want a choice in who gets your stuff. If you check out without one, then New Zealand legislation rules kick in and decide this for you, the results of which you may find very surprising. Click here to see how your assets are distributed without a Will.
Last and certainly not least, a Will is more about the people you leave behind as opposed to you having the last word. A Will helps others to know what your final wishes were. It also cuts down the time and cost associated with administering your estate. The less time it takes the lower the fees. The lower fees means more is left for your family. This reduces the stress for your family at an already painful time.
What happens when you don’t have a Will?
It all depends on the value of what you’ve left behind. If all your stuff (aka assets) is worth less than $15k, your closest living relative will be able to manage all the details of administering your estate without having to apply for probate. However, if all your stuff is worth $15k or more, or you own property, someone will need to apply to the Court to get legal authority to act as your executor and sort everything out (this is a lot harder without a Will). Without a Will, your things are distributed through preset rules (laws of intestacy) which means you have no say in who gets what and how much of what you leave behind. These laws are there to protect partners, parents, and any children from being cut out of receiving an inheritance - it’s all in the name the “Family Protection Act”. A lot of people think this means their stuff just goes to their partner, or to their children when they pass away. The reality is a lot more complex and often not what you actually want.
