As always, the content below is meant as general information to give you a better understanding of this topic, and is subject to our terms and conditions. You should seek appropriate personalised financial advice from a qualified professional to suit your individual circumstances.
What is it?
Simply put, a Will is a document that says what should happen to your ‘estate’ (everything you leave behind) in the event of your death.
Usually someone is a named as the ‘executor’ of a Will. This person is responsible for ensuring that your wishes are carried out, and what you leave behind ends up in the right hands.
Passing away without a will is called dying ‘intestate’.
Why is it important?
Death can be a confronting subject for a lot of us. This is totally understandable, but having an up-to-date Will in place can be one of the best ways to care for those you might leave behind.
Many people think that their assets would just go straight to their next of kin, so there’s no need for a Will. Unfortunately, this isn’t the case. Dying without a Will leaves a costly mess for the people you leave behind, at the worst possible time.
“I don’t have any assets, so I don’t need a Will.” – This is a common misconception that we hear from a lot of people. They forget about things like their car, KiwiSaver money, savings and valuable items like jewellery. All of which needs to be included in a Will. More importantly, if you have children, or pets, you need to make it clear who you wish to look after them.
What happens if you die without a Will?
Everything in your name, including your bank accounts, is frozen by the court.
Even if there are no disagreements between who gets what, all your assets will remain frozen for at least six months*. Your family will need to pay legal and court fees to get it all sorted out. If you have people who may rely on the money in your bank account (for example, a partner or children) having a Will is essential so there’s no hold up in them accessing the money.
How to set up a Will
If you have a complicated financial and family situation, a lawyer can help you create your Will, however this can be a costly exercise.
There are specialist companies that provide this service too, and can act as the ‘executor’ when you pass away. Most of these companies charge a standard fee to put everything in place, and take a small percentage of your ‘estate’ upon passing.
We have partnered with a leading New Zealand company in this field, and can help you through the process of creating your Will. If you have relatively simple circumstances, you can even do the whole thing online.
Checklist
Create a list of your assets and important considerations (e.g. Kids, pets, KiwiSaver funds, cash, jewellery, car, insurance policies etc.)
Decide who you would like to look after your dependents, and who your assets will go to in the event of your death. You also need a ‘back up’, in case you were to pass away alongside the person who you have left something to.
Write down your funeral wishes (anything you like, music is pretty key here)
Decide on an executor – the admin person who will distribute your assets as directed by your will
Sign the document, and have a witness also sign
People don’t like to talk about death, and we totally understand. But, getting it sorted now could mean a lot less complication for your loved ones in the future.