SECURE YOUR LEGACY AND ENSURE YOUR WISHES ARE HONORED WITH A WELL-CRAFTED WILL

Creating a will is an essential step in securing your legacy and ensuring your wishes are respected after you pass away. However, many people delay this task, often placing it in the “I’ll get to it later” category. A will outlines how your property (your estate) should be distributed and appoints someone (your executor) to carry out these wishes.

Failing to create a will, known as dying intestate, can lead to significant complications for your loved ones. Without a will, your family must seek authorization from the Court to manage your estate, causing costly delays during an already difficult time. The Court will appoint an administrator to handle your estate, and this person may not be someone you would have chosen. Moreover, the administrator will distribute your estate according to a predefined formula, which may not align with your intentions. Let’s explore two scenarios to understand the consequences of dying without a will.

Ryan and Shelly’s Story

Ryan and Shelly are a middle-aged married couple without children. While they own some property jointly, they also have individual KiwiSaver accounts, investments, and savings worth over $15,000. Shelly’s parents, Paul and Christine, live nearby and are financially secure. Unfortunately, Shelly passes away after a brief illness, and she and Ryan never got around to finalizing their wills.

Since Shelly died intestate, Ryan must apply to the Court to access Shelly’s KiwiSaver, investments, and savings. According to the Administration Act, Ryan is entitled to all of Shelly’s personal belongings (chattels), but the rest of her estate must be divided between Ryan and Shelly’s parents. Ryan will receive two-thirds of Shelly’s estate, while the remaining third will be split between Paul and Christine. This division is a shock to Ryan, who now faces the burden of managing the mortgage alone, despite knowing that Shelly’s parents are financially comfortable.

Sarah and Harry’s Story

Sarah and Harry, also a middle-aged couple, have two grown children with promising careers. Like Ryan and Shelly, they have not prepared wills. When Harry unexpectedly dies in an accident, Sarah must apply to the Court to access Harry’s KiwiSaver and personal savings, which she needs to help cover the mortgage while she copes with the loss.

Sarah is surprised to learn that she is not entitled to all of Harry’s KiwiSaver and personal savings. She will receive the first $155,000 of Harry’s estate and one-third of the remaining balance, while the other two-thirds will go to their children. This is not what Harry would have wanted, and the situation adds further stress to Sarah during an already challenging time.

The Importance of Having a Will

While it’s uncomfortable to think about death, it’s a reality we all must face. Dying without a will can not only create additional stress for your grieving loved ones but can also result in your estate being distributed according to a set formula, rather than your personal wishes.

Taking the time to consider how you want your estate to be distributed is crucial. A lawyer can ensure that your will covers all necessary aspects and is executed properly, making things easier for those you leave behind and reducing the risk of disputes.

By securing a well-crafted will, you provide peace of mind for yourself and your loved ones, knowing that your wishes will be honored and your legacy protected.