Why You Need a Will
Even if you’re young, or don’t have many assets
Almost half of New Zealand adults don’t have a will.
If you’re one of them, you could be making a costly mistake.
In many cases, dying without a will forces your loved ones into a time consuming and expensive legal process. And from an EA perspective, you’re forgoing the opportunity to have a significant impact by leaving a bequest to effective charities.
You may think you don’t need a will, because your estate will automatically go to your partner or children. However, this isn't necessarily the case. If you die without a will, the NZ Administration Act 1969 determines where your assets go. That means the government decides how your estate is split amongst your partner and/or family. This may not be the division you'd prefer. And if you don't have any living relatives, everything passes to the state: an outcome few would choose! Maintaining an up-to-date will is the best way to avoid this, and to ensure that your wishes are carried out.
Having a will also helps lighten the load on your loved ones at a difficult time. Estate management can be surprisingly complex, even if you don’t have many assets to distribute. For most Kiwis, the process takes 200 - 300 hours over the course of several months. There’s also the financial burden to consider. Even with a will in place, administrative costs average $10,000. Without a will, both time and expenses increase by around 50%. So if you’d like to save your loved ones significant legal stress (as well as thousands of dollars), make sure you have an up-to-date will.
Depending on what you own, a will may even be a legal requirement. If you have more than $15,000 in assets, you’ve crossed the legal threshold that requires a will for your estate to be distributed.
It’s amazing how quickly you can reach that threshold, even if you don’t think of yourself as particularly wealthy. Remember, assets include many things, not just real estate and cash. Your KiwiSaver balance, as well as any vehicles, investments or insurance policies, all count. If the total is worth more than $15,000, you need a will.
Legalities aside, making or updating a will is a wonderful way to leave a legacy. As well as providing for your loved ones, you’ll have the opportunity to support your favourite nonprofits. While there are various arguments for giving now vs giving later, making a bequest to effective charities is one of the best ways to have an impact beyond your lifetime. If you’re interested in leaving a gift to EA NZ or one of our recommended nonprofits, please visit our bequests page or contact us directly. We’d be happy to help.
Finally, don’t let the process of writing a will intimidate you. There are many simple and affordable options. DIY kits are often available at bookstores for around $20.00. These contain blank will templates which you can simply fill out and sign. There are also online will services like Footprint, which walk you through the process step-by-step. If you’re ready to get started, Footprint are offering 25% off their $100 single will kit this September. Just use code WILLS2024 at checkout. (Not sponsored— we’re just fans of their service 🙂).
Of course, none of this constitutes legal advice. If you’re feeling uncertain or have complex requirements, it's always best to speak to a qualified lawyer. Whichever route you choose, we’d encourage you to get started on a will today. It’s one of the best ways to protect your loved ones and leave an impactful legacy.
