Creating a Will is a crucial aspect of securing your legacy and ensuring your wishes are honored. Unfortunately, the topic of death is often avoided, leading many to neglect planning for this inevitable event. When someone passes away without a Will, the legal term is “intestate,” and the repercussions can be both financially burdensome and emotionally stressful for grieving loved ones.

Handling Small Estates:

If the deceased’s estate is valued at $15,000 or less, family members or next of kin can manage it without court involvement. However, for estates exceeding this limit, the legal process becomes more complex.

The Court’s Role:

When an individual dies intestate, family members, including spouses, partners, or children, cannot access the estate without court authorization. The Court may appoint an administrator, potentially someone not chosen by the deceased. Family members must then apply to the High Court to become the administrator, a process that can be both time-consuming and emotionally taxing, particularly if conflicts arise within the family.

Distribution of the Estate:

Without a Will, the estate distribution follows the rules set by the Administration Act 1969 or Intestacy Rules, prioritizing specific relatives. The order of priority is as follows:

1. Spouse, civil union partner, or de facto partner
2. Children
3. Deceased’s parents
4. Brothers and sisters
5. Grandparents
6. Uncles and aunts
7. New Zealand Government (if none of the above apply)

Distribution Examples:

– Spouse or partner with children: Spouse gets possessions, a set amount (currently $155,000), and one-third of the remaining property; children get the other two-thirds.

– No spouse or partner, only children: Children inherit everything equally.

– No spouse, partner, or children: Parents inherit everything.

– No spouse, partner, children, or parents: Siblings inherit everything equally.

– If none of the above: Estate goes to the New Zealand Government.

Complexities and Consequences:

Dying without a Will leads to a more intricate, expensive, and time-consuming legal process. The distribution may not align with your preferences, potentially causing distress to your loved ones. Save them stress, money, and time by creating your Will today.