And what happens if you die without one?
In New Zealand, not having a will can lead to significant legal complications, time delays, expenses and emotional stress for your family. When someone dies intestate (without a will), their estate is divided according to specific laws rather than their personal wishes, even if they have made those wishes known to you. Managing an intestate estate is often more complex and time-consuming, legal and other fees increase due to the necessity for court involvement, and significant delays in asset distribution can add further burdens on your loved ones.
If you pass away with more than $15,000 worth of assets located anywhere in the world, probate will be required. This amount is easily met when you consider it includes everything such as money in bank accounts, kiwisaver and vehicles. With a will, the executor named in the will applies for a Grant of Probate, which confirms the validity of the will and authorises them to manage and distribute the estate. In contrast, without a will, Letters of Administration are necessary, and the court appoints an administrator to handle the estate according to intestacy laws outlined in the Administration Act 1969. These Letters of Administration are legal documents issued by the court that authorise an individual to manage and distribute the estate of someone who has died without a will, or when the will is invalid. Here’s a brief overview of the process:
The court appoints an administrator (usually a close family member or someone with a legal claim) to handle the deceased’s estate.
The administrator must apply to the court, provide evidence of the deceased’s assets and liabilities, and follow legal procedures for distributing the estate according to intestacy laws.
The administrator is responsible for paying any debts, managing the estate’s assets, and distributing the remaining assets according to the rules of intestacy.
While it is possible to handle the process without a will, obtaining Letters of Administration is generally a far more time consuming and costly option. If your estate includes complex assets, such as a business or investment properties, intestacy can complicate distribution and lead to disputes, further adding emotional strain during an already difficult time.
Another benefit of having a will is that you can appoint testamentary guardians for your minor children. In New Zealand, a testamentary guardian’s role generally includes the right to provide day-to-day care of the children, although it does not automatically guarantee this (the Family Court uses the term "day-to-day care" to replace the term "custody"). The testamentary guardian makes major decisions about how the children are brought up (such as education, religion, health and residence). If you die interstate, the court will determine guardianship based on what it believes is in the child’s best interests, which may not align with your wishes.
We can assist you with estate planning to help you secure your legacy and ensure your wishes are honoured. A good will should not be complicated, and should be written in a way to allow the will to remain valid into the future, even if your assets change, or you have additional children and/or grandchildren. Our approach to estate planning is independent and impartial. Unlike most others, we do not list ourselves as executor and we do not administer estates. Therefore, you can trust that there will be no hidden fees or unexpected costs after your passing.
This article is intended for informational purposes only and should not replace specific estate planning advice. For personalised advice on all estate planning matters please contact us.
This article was accurate at the time of publishing.
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