Selwyn Times: August 04, 2021

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12 [Edition datE]
Homeownership: should you make a will?
If you have just bought your first home
or already own a property, then the
answer to this is yes.
Purchasing a home is one of the biggest
investments you may make during your
lifetime.
It is, therefore, necessary to decide who
will be the benefactor/s of your property
and belongings should you suddenly pass
away. To do this, you need to create a will.
A will states who receives what in the
event of your death.
Anyone over 18
years old can
create a will.
According to the Public Trust, over
50% of New Zealanders do not have a
will. Young people, aged from 25 to 39
years, who are financially independent,
feature highly in this area, and yet they
are a group more likely to indulge in
adventurous holidays and take part in
risky extreme sports. Accumulated assets
of this age group might include a bike, car,
TV, house, and furniture, along with a vast
range of electronic and digital gear.
With the arrival of a family, having a
will in place is even more essential and
yet, according to the survey taken in
2014, only 30% of 25-40 year-olds, with
children, have a will in place.
A will not only legally takes care of the
property, and the monetary side of things
but can also state who will take care of
children in the event of an untimely death.
What happens if there is no will
The lack of a will can create problems
over who will benefit from the estate -
this is especially important if there are
children, de facto relationships, children
from previous relationships, family
members with addictions, or where a
business is involved.
Where there is no will, the estate goes
into ‘intestacy’, which means a court will
appoint an administrator, who does the
same job as an executor, to manage the
estate. The administrator has the authority
to act on behalf of the deceased and
applies to the High Court for letters of
administration (power to administrate the
estate).
The Administration Act
1969 provides a code to
be followed that ensures
the estate is administered
in order of priority.
(Check out Wills at www.
communitylaw.org.nz)
Save time and money
Before meeting with your
lawyer, and to help save
time and money, decide
in advance how you want
to distribute your will –
determine who will receive
what.
You can also create a DIY
will online, but if the distribution of your
property is complicated, you may need to
contact a lawyer for additional help.
For your will to be valid and legally
binding it must be signed in front of two
witnesses, who also must sign it. The
witnesses are not in any way responsible
for what is in the will or its execution.
Four steps to creating a will
1. Nominate an executor – the person
who will manage the distribution of your
property.
2. Choose how you want to be buried
or cremated, and how you want your
funeral to be held, i.e. small and private, at
a church, or in a garden. Make sure family
or friends know in advance what you want
to happen, as the reading of the will may
not be before the funeral.
3. Appoint a guardian/s for your
children (if under 18) and your pets.
Discuss this with prospective guardians,
so they are prepared and understand their
responsibility.
4. Decide who will receive what and
how much; this may include money,
property, and personal belongings, as well
as selected charities.