From many years experience, we know that the most difficult thing to get our clients to do in relation to their financial planning is to put in place or update their will. It is difficult both practically (getting it done and witnessed), but also emotionally, thinking about being dead and what would happen to your loved ones and dependents.
When you don’t have a lot of assets, it is easy to say – ‘I won’t bother with a will, it is all too hard.’
But don’t forget, you are likely to have KiwiSaver now and when you die, those assets are paid to your estate.
David Boyle from the Commission for Financial Capability is urging KiwiSaver providers to help their KiwiSaver members to put in place a will.
As the article mentions, if you don’t have a will in place and you have more than $15,000 in your KiwiSaver, you require a letter of administration from the court before the provider can release the funds. This letter may cost your estate around $2500 and can take 7-8 months. IF there is a dispute, it can take longer and be more expensive.
If you have a will, there will be costs for getting probate, but it will be a lot quicker and around half this cost. If you have less than $15,000 in your KiwiSaver, your beneficiaries must petition your KiwiSaver provide r for the money.
So, take that time, take the big breath and get your Will written.
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By Carey Church