We know that estate planning and wills are tough – they’re complex, can be filled with legal jargon, and have cost associated with them. They also are essential in our view so here’s a plain language overview. No, we don’t sell them and aren’t trying to sell you one, and don’t get any perks from saying this – just sharing what we know first hand, as having an up to date will makes one of life’s toughest moments slightly less heavy as there’s clear guidance on how to honour a loved one.

Here's a plain language summary on wills, and some answers to frequently asked questions. If you have questions, edits or feedback, please get in touch.

What is a Will and Why Do We Have Them?

A will, also known as a last will and testament, is a legal document that outlines how a person wishes their assets and affairs to be handled after their death. Wills serve multiple crucial purposes: they provide clear instructions for the distribution of property and possessions, appoint guardians for minor children, and name executors to manage the estate (all of the assets etc).

By creating a will, individuals can ensure their final wishes are respected, potentially reduce family conflicts, and simplify the process of settling their estate. In essence, a will is a powerful tool that allows people to exert control over their legacy and provide for their loved ones even after they're gone.

The Origin of Wills

The concept of wills dates back thousands of years. Some of the earliest known wills were found in ancient Egypt, with hieroglyphic wall inscriptions detailing the transfer of property after death. In ancient Rome, wills became more formalized, with the development of legal principles that still influence modern will-making.

The English common law system, which forms the basis of New Zealand's legal framework, began recognizing wills in the Middle Ages. Over time, laws governing wills have evolved to reflect changing societal norms and family structures. In New Zealand, the current laws surrounding wills are primarily governed by the Wills Act 2007, which modernized and clarified previous legislation. This long history underscores the enduring importance of wills in human society as a means of preserving individual wishes and maintaining order in the transfer of property between generations.

Who Needs a Will?

A significant proportion of eligible New Zealanders do not have a will, with past surveys suggesting this could be around half of the adult population. Many people, especially younger adults, may feel they don't need a will until they're older. However, it's important to have a will at any adult age, as unforeseen circumstances can occur at any time.

If you have assets, debt, are travelling or have a family, having a will is a very smart thing to do, giving you peace of mind, and also relieving your family of a significant financial and emotional toll if you were to pass away without one, that is called ‘intestate’. We’ll write another post to better describe that as it can be complex and very costly, and emotionally fraught for loved ones.

When Should I get a Will?

Life changes such as marriage, divorce, birth of children, or significant asset acquisition like your first house, a growing super balance, a nice Sharesies portfolio are good prompts for creating or updating your will. It's advisable to review your will every 3-5 years or after major life events.

While the majority of New Zealanders use a lawyer or providers such as the Public Trust to create their will, ensuring legal validity, there's a growing trend towards online will templates and generators. Consumer NZ advises: "A DIY job may be fine if your assets are modest and your family relationships orderly. But if not, you may need to seek legal advice."

It's crucial to understand that while online options can be cost-effective, they may not cover complex situations or provide the personalised advice that a legal professional can offer.

How Much Do Wills Cost?

The cost of creating a will in New Zealand varies widely:

· Free services: Some lawyers offer free will-writing services if they're appointed as the executor or there are fees attached to later services

· Online options: Range from $0 to around $100.

· Professional services: Generally between $150 to $1000+, depending on complexity – a rough estimate is around $400 for a small-medium practice lawyer to create your will.

Some providers such as the Public Trust or Perpetual Guardian may require being appointed as an Executor and will incur expenses/be reimbursed by the estate. Executors don’t need to be will providers or legal advisors, they just need to be comfortable with managing the administration of your estate, and honouring your wishes as you’ve detailed them.

Where to Start With a Will

When preparing your will, or before you meet with a will provider it can help in advance if you consider the following:

An updated will replaces all previous wills
If you have an Māori land interests
How you would like your Estate distributed
Who would be suitable as an Executor
If you have young children, who you might wish to be their Guardian/s
Funeral instructions
Specific bequests to charities
Potential tax implications
How you would like your pets to be cared for

Please note that while this guide provides general information, it's always best to seek personalised legal advice for your specific situation. Proper will planning can provide peace of mind and ensure your legacy is managed according to your wishes. Holdmine has detailed sections for recording your funeral wishes, personal gifts and more, and you can easily take a photo or upload your will too, making everything easy to manage so you can put it to bed and get on with doing the fun stuff!

Do let us know if you have any questions or suggestions for edits, and scroll down below this image to check out some of our answers to commonly asked questions 👇

Some FAQ About Wills

Why is having a will important?

A will allows you to appoint trusted executors, specify asset distribution, and ensure your final wishes are honoured as much as possible. It can also help prevent family disputes and simplify the probate process.

How many people have a will?

Recent studies suggest that approximately 50% of eligible New Zealanders don't have a will. Many people mistakenly believe they don't need one until they're older, but it's crucial to have a will at any adult age.

What happens if you pass away without a will?

In New Zealand, dying without a valid will is called dying "intestate". The Administration Act 1969 determines how your estate is distributed:

1. Spouse/partner and children: First $155,000 and personal chattels to spouse/partner, remainder split between spouse/partner and children.

2. Spouse/partner, no children: Entire estate to spouse/partner.

3. Children, no spouse/partner: Equally among children.

4. No spouse/partner or children: Parents inherit everything.

5. No spouse/partner, children, or parents: Siblings inherit in equal shares.

6. None of the above: The estate goes to the New Zealand Government.

This is a big topic so we will write a full update on this in the coming months, watch this space!

Where should you store a will?

Somewhere safe! But also where your trusted loved ones know where to look. Some safe storage options include:

Bank safety deposit boxes
With your lawyer
Secure digital storage platforms like Holdmine

Note: ensure your loved ones or executor knows where to find your will!

Do Aged Care facilities require a will?

When considering a move into a care facility in New Zealand, there are several important legal and administrative steps to consider. First and foremost, you'll need to undergo an assessment to determine the level of care required. This assessment helps ensure you receive appropriate support and services tailored to your needs.

Many care facilities in New Zealand request that residents have a will in place either before or shortly after moving in. This practice encourages residents to have their affairs in order and can provide peace of mind for both the individual and their family.

Additionally, it's crucial to consider setting up enduring powers of attorney for both health and welfare, and property. These legal arrangements allow you to appoint trusted individuals to make decisions on your behalf should you become unable to do so yourself. Taking these steps can help ensure your wishes are respected and your interests are protected as you transition into residential care.

Please let us know if we can help answer any other questions too.

Wills - A Plain Language Guide