Do I Need a Will?

Nearly half of us in New Zealand don’t have a will or a trust and surprisingly nearly 60% of Baby Boomers haven’t drawn up a will either.

Are we lazy? Is it simply because we’d rather leave that job to our kids to sort out? Maybe, a bit of both – but when asked, nine out of 10 Kiwis think having a will is important. So it comes down to taking that next step, actually setting a will and it’s actually easier than you think.

It’s not just a matter of whether your holiday home up North should go to Aunt Judy, your son Greg or donated to Hospice. Look at it from an overarching standpoint – setting up a robust estate plan.

As simple as it sounds, creating an estate plan will make things a whole lot easier on your family and loved ones if the unexpected happens. It’s peace of mind versus dying with no plan in place.

Moving On With No Will

Things get messy when someone dies intestate, meaning they have no will. It’s here where many people make wrong assumptions. Most of us want our property to go to someone we’ve chosen, some believe a spouse or partner and the children automatically inherit your assets, but this isn’t necessarily the case if there is no will.

New Zealand laws come into play if you die intestate, the Government will decide how an estate is carved up among family and loved ones. This could likely lead to a date in court with all the associated costs and stress if someone in the family feels they’ve been treated unfairly. Legal fees and a lengthy period just trying to sort out how and when your estate can be accessed is exactly the nightmare scenario most of us hope to avoid. This puts a huge strain on your family when they’re already grieving.

So the key message is don’t leave it to someone else to sort out after you’re gone, help your family now.

It’s actually a pretty simple process to set up a will but first you may want to find out more and look at an estate plan that’s tailored for you. What we have found with our new clients is that usually this small (but important) part of your financial plan is largely forgotten. It’s something once explained to our clients, becomes an important task, especially with their children in mind.

An Estate Plan

Setting up a will and having an estate plan should help your family after you’ve passed away – letting them come together and celebrate a life lived.

An estate plan covers:

  • A will. This sets out how you want your personal assets will be distributed. It can also deal with guardianship of children, funeral arrangements or any special instructions.
  • A trust. This is set up to protect your assets. Property that’s put in a trust is no longer controlled by you but by appointed trustees. Your will deals with assets outside the trust.
  • A Living will or health care proxy.  Depending on what stage of life you’re at, the first step may be to set up an EPA or an Enduring Power of Attorney. It’s simply a legal document that will give someone the authority to act on your behalf if you lose the ability to make decisions.

“Advice, structure and support” is the core basis of SurePlan’s financial planning service. We offer a holistic approach to financial planning that is catered to individual client’s needs, because there isn’t a cookie cutter solution to your personal wealth! Have a chat with us to see how we can help on 09 551 9071 or book a call here