Myth busting 101
Something we’ve learnt along the way is that there are a lot of misconceptions out there about what happens to your stuff when you pass away. Some of these have serious impacts on friends and family, which is why we are such big advocates for getting your Will sorted early. Here are some of the most common ones:
“I don’t need a Will, my partner automatically gets everything”
It’s a common misconception that if you die without a Will, your partner automatically inherits everything you own. Partner in this instance means a spouse (married relationship), or someone in a de facto relationship (you’ve been together for 3 years, or have a child together). The reality is a tad more complex, and depends on if you and your partner have joint ownership over your assets (e.g. you both have a house that’s under both your names). In fact, the ONLY time your partner would receive everything is if they have joint ownership across all your assets, or if you have no parents, children, or grandparents to receive your assets. Crazy right!
"I’m too young to think about this kind of stuff – I don’t want to jinx it!”
Yeah, we get it. Talking about getting a Will can be an uncomfortable topic. But (and it’s a big BUT), none of us know what’s around the corner, and making a Will just means you’ve planned ahead. It’s a very caring thing to do for the people you leave behind and gives you some peace of mind that the people you care about will be looked after. You might also be thinking you don’t have enough valuable possessions to warrant getting a Will, but have you considered your KiwiSaver account? All your digital stuff (photos, videos, and important documents, social media accounts, iTunes)? Making a Will shouldn’t be a stressful experience, and at Footprint, we’ve made sure the entire process is quick, easy and has that extra ‘feel good’ factor of giving back to the greater community.
“My debts die with me”
We wish! Although, it does make sense why this rumour came about…Your executor is responsible for paying off any of your debts and liabilities after you pass away, the money still comes out of your pocket, it’s just covered by tapping into your savings or selling your stuff. The only time your debts are written off is when there’s no money left, and nothing left to sell.
“My family knows what I want. They’ll sort it out”
Without a Will, your family will lack the legal right to make any important decisions about things such as estate distribution (who gets the family ring?), property (what happens to the house?), or even who your child’s guardian will be. So, unless your estate is under $15k, your family will be bound by legislation, which will dictate things such as: who will administer your estate; who will get your assets; when they’ll get those assets; and who will have the legal authority to look after your children (guardianship). It might be worth pointing out this isn't custody we're talking about here - it’s an easy assumption to make when you say legal authority.
