Why Having a Will Matters

Life is busy. There are many demands on our time and never enough hours in the day. Most of us know the importance of having a will, but writing one is something many people struggle to get around to.

And the numbers back this up. 50% of Kiwis don’t have a will.

Your will provides for your family and friends and gives clear instructions on how you would like to be remembered. It also reduces the cost and time of administrating your estate, making it easier on your loved ones at an already difficult time.

Writing a will does not need to be complicated, but a lot of people do not know where to begin. The most important thing is simply to start thinking about who and what are significant to you.

Think of your loved ones first.

First and foremost, a will provides clear instructions for the care and wellbeing of the people you wish to provide for, ensuring your wishes are understood and respected.

A good place to start is by thinking about the people who matter most to you.

If you have children, the surviving parent is usually the automatic guardian. If both parents have passed on, care for any children that are under 18 years of age falls to a guardian. Choosing your children’s guardian is one of the most significant aspects to consider when thinking about your will. Who is someone you trust who understands your values? It is crucial to appoint a guardian, as without one, the court may ultimately decide who will care for your children.

After considering the needs of your children, think about other members of your family and close friends. Every family is different. Are there family dynamics or personal circumstances that should be thoughtfully considered? Do you have close friends that you care for?

Pets are beloved members of any family. Is there someone who you would like to care for your dog, cat or fish?

While it is difficult to think about leaving family, friends and pets behind, taking the time to consider them now can provide clarity and reassurance in the future.  

Consider what you own and who you would like to give it to.

Writing a will provides an opportunity to think about your assets and personal possessions.

You may think you don’t have a lot of money or significant assets, but if you are in KiwiSaver or on the property ladder, your estate is likely to be worth more than you think.

Writing your will and clearly outlining whom you would like your money and assets to go to is very important.

A will helps ensure the people and causes you care about are provided for in the way you intend. In New Zealand if someone dies without a will it is referred to as ‘dying intestate’. Because your wishes were not officially recorded, everything is distributed according to the law. In this scenario, the Administration Act 1969 kicks in and uses a fixed legal formula to divide a deceased person's estate, and this may not reflect what you want.

Financial assets are not the only things to consider. Do you own possessions of significance such as jewellery, art, or a basketball card collection that you would like to leave to someone special? A will allows you to put your intentions into writing so your nephew or niece can cherish your Michael Jordan cards just as much as you do.

Not only does a will make it much smoother to distribute your assets, but it also means your loved ones have more inheritance. Without a will the cost of administering an estate increase by around 50% and can take up to 2 years to settle. Extra cost and time can add another layer of stress to your family.

Who do you want to carry out your wishes?

Another key decision is choosing the person, or people, you trust to carry out your wishes as executor of your estate.

The executor is the person with responsibility for managing your estate. It can also be a group of people. The executor or co-executors have an essential role – they ensure your wishes are carried out, and assets are distributed according to your instructions. They will pay debts, funeral expenses, estate administration costs and applicable taxes on your estate. It is a big responsibility, and many people prefer to appoint a professional executor to manage their estate or support their executor / co-executors.

After considering the people you would like to provide for and the practical arrangements you would like to put in place, you may also wish to think about the causes and organisations that have been important to you throughout your life.

What causes do you care about?

Have a think about what causes you have supported during your lifetime. Is there a community group or sports club you have been involved with? What charity or charities reflect your values and what is significant to you?

Alongside looking after loved ones, an increasing number of Kiwis are choosing to leave a gift in their will to charity.

Leaving a charitable gift is an opportunity to have an impact beyond your lifetime. It is a way of helping others enjoy the opportunities or support you may have received, and to help a charity you care for continue to be there for future generations.  

You do not need to decide anything right now. The important thing is asking yourself if this is something you want to consider.

Your will can change as your life changes.

A will reflects your intentions and plans at the time it is written. It is a living document and your first will might not be your final one. It can be updated as needed to reflect how your life may change in the future – marriage, separation, buying property, the birth of children and grandchildren are some of the major life events in which people revisit their wills.

If writing a will has been sitting on your to-do list, taking the first step today can help ensure the people and causes you care about are looked after in the future.

If you are ready to write your will, you can do so for free through our partnership with Footprint, New Zealand’s largest online will provider. Simply visit https://partners.myfootprint.co.nz/the-champion-centre to get started.