Approximately 50% of New Zealanders don’t have a will, and of
those who have made one, half haven’t updated their will to reflect their
current circumstances. Why is that? Well, in this blog post I’ll look at the
most commonly cited excuses and explain the reality.
Myth #1: “I already told my spouse/brother/mother/best
friend etc. that I want all my belongings to go to them, so I don’t
need to do anything else”.
Fact: Wrong. We like to think that when we die, our assets
will transfer automatically to those we love the most. Unfortunately, when we
pass away without a will (this is called intestacy), the law determines how our
estate is divided up. Instead of an
executor of your choice, the court appoints an administrator to administer the
estate.
The way it is divided all depends on your family situation:
- If your partner is living, but you have no children or living parents, everything goes to your partner.
- If you have children, but no partner, everything goes to them in equal shares.
- If your partner and children are living at the time of your death, your partner receives all your personal belongings, $155,000, and one third of the remainder. Your children will receive two-thirds of the remainder when they turn 20.
- If you don’t have a partner or kids, everything will go to your parents.
If all this sounds a bit complicated, it’s because it is. It’s
best not to leave these things to chance.
Myth#2: “I’m not rich enough to make a will”
Fact: No matter how big or how little your estate is a will
ensures that whatever personal belongings and assets you do have go to the
right people; these items could include your favourite pieces of jewellery,
your car or even your pet.
A will is especially important if your children are still
minors. You’re able to appoint a guardian who would care for your children should
anything happen to you. A will also allows you to decide how and when your
children receive their inheritance.
Myth#3: “Writing a will is too difficult and awkward”
Fact: Ok, so this one is half true; nobody really enjoys
talking about death. But it’s an important conversation to have if you to avoid
more heartbreak for your family after you’re gone. If you find it uncomfortable
to discuss to private affairs in person, then try our online will service. All
you have to do is fill out the quick form, and our experts will get back to you
in 48 hours with your complete will.
For more information about wills and estate planning, head to www.perpetual.co.nz.
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| © Eric Ward, 2007 |
