Outlining benefits, exploring ins and outs, and busting a few myths along the way!
Here are some statistics that should come as a shock: research by both estate planning services provider Perpetual Guardian and estate administration services provider Public Trust indicate that between 40 and 50 percent of Kiwis do not have a Last Will and Testament, commonly referred to as just a ‘Will’.
Perhaps even more worryingly, the Public Trust’s data indicates that as many as two-thirds of Kiwi parents and guardians with children aged under five do not have a Will.
These are stunning and appalling statistics that really, really matter. In this article, produced with the help of our legal friends at Law North here in Kerikeri, we’ve tried to unpack some of the reasons why.
In a nutshell, anyone over the age of 18, especially those with significant assets or children, should have a Will. The greatest benefit is the control it grants over your estate. It allows you to specify who inherits your property, who takes care of your children, and who administers your wishes when, inevitably, you shuffle off this mortal coil.
Without one, your assets will be distributed according to the laws of intestacy. Basically this means that the state determines the distribution of your assets. This distribution may very well not align with your personal wishes, and will likely ignore the nuances of your personal relationships and desires. This could result in loved ones not receiving what you intended for them and, in some cases, serious and long-lasting disputes among family members.
Avoiding family disputes
When someone dies without a Will families may argue over how the estate should be divided, leading to emotional and financial strain. Estate disputes can be particularly distressing during a time when families are already grieving, and they often lead to lengthy and expensive legal battles.
Having a Will in place can prevent these conflicts by clearly outlining your intentions. It provides clarity and direction, reducing the likelihood of disagreements among your beneficiaries.
To reduce the likelihood of conflict still further, consider appointing an executor you trust to administer your estate fairly and efficiently.
Saving time and money
While some might argue that drafting a Will is an unnecessary expense, not having one can be far more costly in the long-run. Without a Will, the process of administering your estate becomes more complicated, often requiring a court-appointed administrator. This can lead to significant delays in settling an estate, sometimes stretching up to a year, and additional legal expenses.
A Will simplifies the distribution process. It allows your executor to act quickly and efficiently, ensuring that your assets are distributed according to your wishes without the delays associated with intestate succession. This is particularly important when there are dependents or beneficiaries who rely on timely access to these assets.
Flexibility and personalisation
A Will is not just about dividing your assets; it is a flexible document that can reflect your personal values and relationships. You can include specific bequests such as gifts to friends, family members or charities, ensuring that certain possessions go to the people or organisations that matter most to you.
For instance, several generous benefactors have bequested sums towards our $8.5 million Care Wing appeal, with the aim of upgrading and expanding the facilities here for those who can no longer look after themselves.
