It’s a common misconception that if you die without having a Will, your partner automatically inherits everything you own. Partner in this instance means a spouse (married relationship), or someone in a de facto relationship (you’ve been together for 3 years, or have a child together). The reality is a tad more complex, and depends on if you and your partner have joint ownership over your assets (e.g. you both have a house that is under both your names). To break it down, if you pass away without a Will and:
You have a spouse and children: your partner will receive all your chattels and $155,000 (with interest) and one third of anything that’s left. Your children receive the remaining two thirds.
You don’t have children, but your parents are still alive: then your partner receives only your personal possessions, the first $155,000 (with interest), and one third of anything that’s left. The remainder is received by your parents.
You have children, but no partner: Your children will receive everything equally.
You don’t have children, or a partner, or surviving parents, but you have siblings: They’ll inherit everything equally, and if any of them have died their children will receive this share.
You have none of the above, but you have grandparents or uncles/aunts who are still alive: Half of your estate will go to both sides of the family (mother’s side and father’s side) i.e. your grandparents, or if they have died then everything will go to uncles and aunts on the mother’s side.
In fact, the ONLY time your partner would receive all of your assets is if they have joint ownership across all your assets, or if you have no parents, children, siblings, or grandparents to receive your assets. Crazy right!
Yeah, we get it. Talking about getting a Will can be an uncomfortable topic. But (and it’s a big BUT), none of us know what’s around the corner, and making a Will just means you’ve planned ahead. It’s a very caring thing to do for the people you leave behind, and gives you some peace of mind that the people you care about will be looked after.
You might also be thinking you don’t have enough valuable possessions to warrant getting a Will, but have you considered your KiwiSaver account? All your digital stuff (photos, videos, and important documents, social media accounts, iTunes)?
Making a Will shouldn’t be a stressful experience, and at Footprint we’ve made sure the entire process is quick, easy and has that extra ‘feel good’ factor of giving back to the greater community.
We wish! Although, it does make sense why this rumour came about…
Your executor is responsible for paying off any of your debts and liabilities after you pass away, the money still comes out of your pocket, it’s just covered by tapping into your savings or selling your stuff. The only time your debts are written off is when there’s no money left, and nothing left to sell.
Without a Will, your family will lack the legal right to make any important decision about things such as asset distribution (who gets the family ring?), property (what happens to the house?), or even who your child’s guardian will be. So, unless your assets are under $15,000, your family will be bound by the Law, which will dictate things such as: who will administer your estate; who will get your assets; when they’ll get those assets; and who will have legal authority to look after your children (guardianship). It might be worth pointing out this isn't custody we're talking about here - it’s an easy assumption to make when you say legal authority.
A survey conducted in 2018 showed that 82% of Kiwis were open to doing their Will online. However, even the most hard core digital natives agree being able to talk to an actual human with industry expertise is a breath of fresh air. At Footprint we provide online and phone support during standard business hours.
If you die without a Will, what happens to all your stuff depends on the value of what you’ve left behind. If all your stuff (aka assets) is worth less than $15,000 your closest living relative will be able to...
