In our new column, we answer commonly-asked questions about estate planning – wills, enduring powers of attorney and estate administration – to help you and your whānau make informed decisions.
Here Natalie Bell steps through what happens when there’s no will.
Question: Who gets what if I die without a will?
We get asked this a lot – it’s a great question. Some people think your spouse or partner automatically gets your assets and other special items, but that’s not necessarily the case.
Dying without a will is called dying intestate. When you die without a will, your assets are distributed according to the law, the Administration Act 1969.
The rules of the Act vary depending on whether you’re survived by a spouse or partner, have children or your parents are still alive.
Having a will is really important as it allows you to specify your wishes for your assets when you die. If you die without a will, your assets and other special items might not be distributed how you wanted, and it can be expensive and take longer to administer your estate.
Without a will, a person’s assets will be distributed according to a legal formula:
If there is a spouse or partner, but no parents or children: The spouse receives the entire estate.
If there is a spouse or partner and children: The spouse receives the personal effects (such as furniture, paintings, homeware), $155,000 (with interest from the date of death) and a third of anything left. Children will receive the remaining two thirds, divided equally between them.
If there are stepchildren or a blended family: These situations are more complex. Whether stepchildren are entitled to benefit from an estate will depend on a number of factors including the age of the stepchildren, their relationship to the deceased and whether they relied on the deceased financially.
If there is a spouse or partner and parents, but no children: The spouse receives the personal effects (such as furniture, paintings, homeware), $155,000 (with interest from the date of death) and two thirds of anything that’s left. The deceased’s parents will receive the remaining third divided equally amongst them.
If there are children but no spouse or partner: The children receive the entire estate; it will be shared equally among them.
If there is no spouse or partner, no children, but there are surviving parents: The entire estate is divided equally between the parent or parents.
If there is no spouse or partner, no children, no surviving parents but surviving siblings: The entire estate is divided equally between the siblings.
What if a person doesn’t have any immediate family?
If none of the above scenarios apply, a genealogist may be engaged to determine next of kin details. If no next of kin are located then in time everything will be passed over to the New Zealand government. Anyone who thinks they should have benefited from the estate will then need to apply to the New Zealand Treasury.
De facto and civil union partnerships
Note that in New Zealand law, some de facto relationships and civil union partnerships are recognised as equal to marriage, for the purposes of estate distribution. See more about how the Property (Relationships) Act could affect you here.
Having a will is important and outlines your wishes for what you’d like to happen when you die. Having one in place can give peace of mind to your loved ones, as well as save time, money and confusion when you pass. I strongly encourage you to get yours sorted today.
Kind regards,
Natalie Bell, specialist at Public Trust
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