The Importance of Having a Will in New Zealand: Avoiding a Legal and Financial Mess
Creating a will is one of the most crucial steps you can take to ensure your assets are distributed according to your wishes after your passing. Without a will, not only do you lose control over who inherits your estate, but you also leave your loved ones to navigate a potentially complex and stressful legal process.
Why You Need a Will
When you have a will, your assets are divided according to your specific instructions, and your estate is managed by the Trustee(s) you have chosen. This clarity ensures your estate is managed as you intend, providing peace of mind for both you and your beneficiaries.
The Consequences of Not Having a Will
Without a will, the distribution of your assets is determined by New Zealand law (the old Administration Act 1969), which may not align with your personal wishes. Here’s how your estate could be divided if you pass away without a will:
Distribution Scenarios
Spouse or Partner, No Parents or Children:
Your spouse or partner receives the entire estate.
Spouse or Partner and Children:
Your spouse or partner receives your personal effects (such as furniture, paintings, homeware), $155,000 (with interest from the date of death), and one-third of the remaining estate.
Your children receive the remaining two-thirds, divided equally among them.
Blended Families and Stepchildren:
The situation becomes more complex with blended families. Stepchildren's entitlement depends on various factors, including their relationship with the deceased and financial dependence. For a comprehensive understanding, it's advisable to consult with us.
Spouse or Partner and Parents, No Children:
Your spouse or partner receives your personal effects, $155,000 (with interest from the date of death), and two-thirds of the remaining estate.
Your parents receive the remaining one-third, divided equally between them.
Children, No Spouse or Partner:
Your children receive the entire estate, shared equally among them.
Parents, No Spouse or Partner, No Children:
Your entire estate is divided equally between your surviving parent or parents.
Siblings, No Spouse or Partner, No Children, No Parents:
Your entire estate is divided equally among your siblings.
No Immediate Family:
If none of the above scenarios apply, a genealogist will be engaged to determine the next of kin. If no next of kin can be located, your entire estate will be passed to the New Zealand Government. Those who believe they should benefit can apply to the New Zealand Treasury for consideration.
Avoiding the Legal Mess
By creating a will, you ensure that your assets are distributed according to your wishes, preventing unnecessary disputes and legal complications for your loved ones. It's a simple yet powerful way to provide for your family and safeguard your legacy.
Take Action Now
Don't leave your estate's future to chance. Contact us today to schedule an appointment and finalise your will. Ensure your wishes are honoured and your loved ones are protected.
Feel free to reach out if you have any questions or need further assistance in creating your will.
