Ideally, estate planning should begin as soon as you acquire assets or have dependents. Anyone with a Kiwisaver account with more than $15,000 should have a Will if they wan to avoid dying intestate – see Letters of Administration. If you have children (or people dependent on you) a life insurance policy may go a long way to help them deal with losing you.  If you have any property in your own name (such as a bank account, a phone or other utility account) then putting in place an Enduring Power of Attorney in relation to Property will prevent those closest to you from going to Court to get a (costly) court order to deal with your accounts, if you lost capacity.  And no, just because you’re married, in a long term relationship or your parents are still alive, they are not legally entitled to do these things for you without legal authority to do so.

Major life events—such as marriage, the birth of a child, a significant change in financial status or a break up of a relationship are all critical times to review and update your plan.  It’s a good idea to look at your plan every two – five years, better yet every year, to see what has changed and if it needs updating.

Consider your assets, debts, beneficiaries, and any specific wishes you have regarding healthcare and end-of-life decisions. It’s important to address how debts will be settled and what provisions should be made for minors or dependents. Having life insurance and appointing a testamentary guardian to be involved with your young children’s lives if you are no longer around will go a long way to easing their suffering. We have a comprehensive questionnaire we would love to share with you, to help you get started. Let us know if you have young children and we can help advise you when considering and appointing guardians.

Our team at Trust Law & More would work with you and your financial advisers to implement a plan that best meets your needs, both during your lifetime and after. 

If you are planning on appointing a friend or family member to act as your Executor (the person who will carry out the terms of your Will after you have died) or your Attorney (the person who would deal with your property or personal care and welfare matters while you are alive but unable to do so for yourself), consult with them first before putting their name forward.  Acting in these roles is onerous and cannot be rewarded financially, unless you specifically record that they may be in your Will or Enduring Power of Attorney.  They may also want to get legal advice before accepting any role.

This is becoming an increasingly common question.  If you do not have someone who is either close to you or who is but they may not have the financial know how of dealing with your assets and debts, you may be able to appoint a professional, such as your accountant, trusted financial advisor or your lawyer, as your executor or administrator. They can act impartially and manage your estate according to your wishes.  Be aware however, they will ask to be compensated for their time spent, which is standard practice and would be the case if you appointed a large trustee corporation to act for you.

Again, this is a very common problem.  If you feel uncertain about your choices, we can help guide you through the decision-making process and can offer insights into various scenarios so that you create a plan that aligns with your values and goals.  The best advice we can give you is that you put something in place than nothing at all.  Once you have taken the first step towards your estate plan, you can continue building on it as and when you are ready to make those decisions.  The more decisions you make now, the less decision making your loved ones will need to make when they are already under a lot of emotional and financial pressure.