You cannot take it with you, but you can ensure that your hard-earned assets go to the right people, your loved ones, without huge legal delays and costs.
The only way to ensure this is by making a Will.
Unfortunately, most New Zealanders have not got the message.
Latest statistics show that 50% of New Zealanders do not have a Will, and many of those who do have a will have not updated it to reflect changing circumstances.
Many Indian immigrants assume that our inheritance laws are similar to those in their home country.
This is not so.
Henry Stokes, Managing Solicitor with Public Trust, New Zealand’s largest specialist writer of Wills, said that one of the biggest myths is that, if you die without having made a Will, your entire estate automatically goes to your partner.
“Many people think so; and hence do not bother making a Will. In fact, if someone with a partner and children dies, the first $155,000 of their assets and personal chattels will go to their partner.
“The partner then gets one third of the balance and the children two thirds. If there are no children, and the deceased has a surviving parent or parents, the partner would get two-thirds of the balance and the parents would get one-third,” he said.
Potential problems
We have come across situations where the husband dies without a Will and his widow has to share the estate with her own children or his parents.
That would come as a big shock!
Not leaving a Will can, potentially, lead to all sorts of problems – partners left facing financial difficulties, estranged family members inheriting part of the estate, or children coming into an inheritance before they are mature enough to deal with it responsibly.
Having a Will gives you the comfort that you have made the best provision possible for the people you care about.
People have different priorities at different stages of their lives. Therefore, it is important to update your Will.
Changing circumstances
If your life changes, then your Will should also change. Such a change may occur when you get married, separate from your partner, move in with a partner, have children or make a major purchase such as buying a property or business.
The main focus for young families can be arrangements for care of their children.
Those with older or adult children are concerned about making provision for their education and maintenance and looking after them in the future.
Older people want to make sure their partner is looked after but also want to provide for wider family including grandchildren.
Sometimes parents do not like a child’s partner and worry about the claim they may have on the estate if they separate.
Specialist expertise
They may also be worried that their children could come into the inheritance before they are mature enough to manage it sensibly.
One of the things that set Public Trust apart from many solicitors is our specialist expertise. We know the issues that are important to people at different stages of their lives and ask the questions needed to get that bigger picture.
As a Crown entity, we have been making Wills for New Zealanders for over 135 years.
Ultimately your Will is your final letter to those you care about and it may be how you are remembered.
It is therefore important to have a will and get it right.
Aravind (Ari) Subramanian is a Senior Relationship Adviser with Public Trust, Manukau City. He advises clients on Wills, Enduring Powers of Attorney, Family Trusts, Estate Administration, Life Insurance and Mortgages. Phone (09) 9855343; Email: ari.subramanian@publictrust.co.nz
