In New Zealand around 1500 people die every year without a Will. If this is you, and your estate is worth more than $15,000, this could cause more headaches and stress for your loved ones. It can also be expensive, delay distribution and complicate the Administration process. Furthermore, when you die without a Will, your estate is distributed according to the Law and not according to your wishes.
If you had a Will, you would have nominated who you wanted to be an Executor to carry out your wishes. Without a Will someone will need to be appointed and this is determined by the Administration Act. There is an order of priority as to who can be appointed, and in some cases, the other parties will need to consent to the appointment.
The order of priority for appointment starts with your surviving spouse or de facto partner (with some exceptions), then your children, followed by your parents, your siblings, your grandparents, or aunts, uncles or their children.
On paper, this might seem simple. In reality, if you had 4 children, we would need to appoint all of them jointly – this can be complicated if they don’t all live in New Zealand, or if they don’t all get along. Or as an alternative only one of your children could seek appointment but only if the other children give their consent to this appointment.
So who can inherit if you don’t have a Will?
There is also an order of priority as to who can inherit and in what proportion. In some situations, it does not automatically pass to your spouse or de facto partner. Section 77 of the Administration Act 1969 sets this out like a “family tree”.
If you have a spouse or de facto partner but no children or parents, then your spouse or de facto partner will inherit your full estate (including your chattels).
If you have a spouse or de facto partner and living parents, but no children, then your spouse / civil union partner or de facto partner will inherit all your chattels, the first $155,000 of your estate and two thirds of anything that is left. Your living parents will receive the remaining third in equal shares.
If you have a spouse or de facto partner and children then your spouse or de facto partner will inherit all your chattels, the first $155,000 and one thirds of anything that is left. Your children will receive the remaining two thirds in equal shares.
What about your animals?
Animals are included in your chattels. So, whoever is entitled to inherit your chattels, will inherit your fur baby.
A Will is one of the most important documents that you will ever sign and is something that you should not put off regardless of your age. At a minimum, if you have Kiwisaver, you should have a Will. It doesn’t have to be complex, let us help you have peace of mind and tidy this up.