Understanding the importance of having a Will
What is a will?
A will is a legal document that outlines how you want your assets and property to be distributed after your death. It also allows you to appoint a guardian for your minor children and specify your wishes for your funeral arrangements.
She’ll Be Right? Not without a will!
Did you know that around *50% of New Zealand adults don’t have a will. This means many people are leaving their loved ones to navigate complex legal processes during an already difficult time. (*Source: The Public Trust 2023 annual report)
What happens if you don’t have a will?
- Delays in accessing funds: bank accounts are frozen, and it can take months to get legal authority to manage the estate.
- Family disputes: without clear instructions, disagreements arise over who gets what, especially in blended families or when assets like farms or businesses are involved.
- Unintended outcomes: assets may go to estranged relatives or bypass people the deceased cared deeply about.
- Legal costs: sorting out an intestate estate often requires lawyers and court applications, which can eat into the estate’s value.
Why have a will?
- Control over your estate: A will ensures that your assets are distributed according to your wishes. Without a will, the law decides how your estate is divided, which may not align with your preferences.
- Appointing guardians for children: If you have minor children, a will allows you to appoint a guardian to care for them if you pass away. This ensures that your children are looked after by someone you trust.
- Minimising family disputes: A clear and legally binding will can help prevent disputes among family members about how your estate should be divided.
- Speeding up the legal process: A will can simplify and speed up the probate process, reducing the time and cost involved in settling your estate.
- Making specific bequests: You can specify particular gifts or donations to individuals or organisations, ensuring your wishes are honoured.
Who needs a will?
It’s generally recommended that everyone over the age of 18 (not just the elderly) should have a will, regardless of the amount of assets they own. Life is unpredictable, and having a will in place ensures your wishes are respected regardless of your age.
How to create a will
- List your assets: Make a comprehensive list of your assets, including property, bank accounts, investments, and personal belongings.
- Choose your beneficiaries: Decide who will inherit your assets. You can also specify any charitable donations or gifts.
- Appoint an executor: Choose someone you trust to carry out the instructions in your will. This person will be responsible for managing your estate and ensuring your wishes are followed.
- Consult a lawyer or legal professional: They can help you draft a legally binding will that meets all legal requirements and ensure you have the document signed and witnessed.
This information is of a general nature and is not intended as personalised financial advice. RIVAL Wealth is a Financial Advice Provider (FAP) licenced by the Financial Markets Authority to provide financial advice. Our disclosure document is located at rivalwealth.co.nz or a written copy is available on request
