With so many blended families these days, do you believe that your spouse, partner or children will automatically inherit your assets when you pass away if you do not have a Will?  Well, the answer is not always.  You are deemed to have died “intestate” and the law steps in to say who is entitled to share your estate.

If you do not have a current Will and you own an asset valued at over $15,000.00 (e.g. a house, bank account/s, life policy, motor vehicle, Kiwisaver) the Administration Act 1969 sets out who is entitled to benefit from your assets as well as who will be the person or people to administer your estate.  There is an order of priority as to who can apply to the High Court to obtain “Letters of Administration on Intestacy” to administer your estate – basically this is the person or people who are entitled to receive the majority of your estate however, other administrators could be appointed by the Court.

Who gets what when you don’t have a Will:

• If you have a spouse or partner but no parents, children or other descendants, your spouse or partner will receive your whole estate.
• If you have a spouse or partner and children or other descendants, your spouse or partner will receive:

– your personal chattels plus $155,000 and one third of anything that is left;

– your children receive the remaining two thirds. If any of your children have died their children would receive their share and so on down the generations.

• If you have a spouse or partner and parents but no children or other descendants, your spouse or partner will receive:

– your personal chattels plus $155,000 and two thirds of anything that is left;

– your parents receive the remaining third.

• If you have children or other descendants but no spouse or partner, your children receive your whole estate equally and if any of them have died their children will receive their share and so on down the generations.

If the value of your estate is over $15,000 but less than $155,000 your spouse or partner would receive your whole estate.

There are further rules that apply if you don’t have a spouse, partner, children or other descendants so your parents and your wider family will then inherit according to the order of priority set out in Administration Act 1969.

The death of a loved one is one of the most traumatic experiences a family will go through and if you are able to have your legal affairs in order at the time of your death, this may relieve some of the burden/stress on your family during their time of grieving.

It can be a very costly process to administer your Estate if you do not have a Will and have assets valued at over $15,000.00 so it is important that you do have a current Will.