Wills - the whys and wherefores
Having a will in place when you die makes winding up your estate relatively easy.
Wednesday, June 14th 2000, 9:31PM
Why do you need a Will?If you don't have a will people you don't want to benefit from your estate may receive some or all of your assets.
One thing is certain. It is more complicated and more expensive to wind up your estate if you die without leaving a will. The costs must come from your estate, reducing the amount available for distribution.
Deciding what's to be done and choosing executors to wind things up can also cause considerable family friction unless these issues are clearly laid out in a will.
The Administration Act
The Administration Act is the law that applies if you die without a will. This is what it lays down:
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If you leave a spouse and children. |
Your spouse receives all your personal items, including furniture and vehicles, together with the first $121,500 of the estate plus one third of the balance. Your children receive the remaining two thirds. If the family home is owned by you it may have to be sold to give the children their share. |
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If you leave a spouse but no children. |
Your spouse receives all your personal items, and the first $121,500 of the estate. In this case, he or she also receives two thirds of the balance. The remaining one third goes to your parents, if they are still alive. |
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Children only |
Everything is divided among the children. |
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No spouse or children left behind |
Your parents receive the estate |
NB: If the Bill currently before parliament regarding property rights of de facto and same sex partners is passed then the rules of the Administration Act will place the surviving partner in the same position as the surviving spouse.
What should be in your Will?
It is important to make sure that your will covers all the special requests you want to make. The following areas are important to consider:
- Who you want to be your executor(s).
- Special instructions for your burial or cremation.
- Who you want to act as guardian if you have infant children.
- Specific gifts of articles, jewellery, or furniture.
- Cash legacies or bequests to people or charities.
- How you want the rest of your assets (your "estate") to be distributed.
There are different levels of complexity in each of the areas mentioned and to make sure they are covered fully all relevant information should be disclosed when instructing someone to complete your will.
Why you should review your will?
Major changes in your life affect your will. You should be aware of the circumstances when you may want to review your will or make a new one:
- If you marry or remarry
- If you're in a long term relationship*
- If you separate
- If you have children
- If you have a change in property
- If your current executordies or in your opinion would be unable to perform the relevant duties
(*) De facto and same sex partners are not currently recognised under the Administration Act, although at time of writing this was being reviewed.
Why you should consider using TOWER Trust as your Executor or co-Executor?
There are several reasons why it makes sense to appoint TOWER Trust - either as sole Executor, or as co-Executor to lend professional support to a "lay person" such as a family member:
- You will receive the benefit of skilled and experienced advice to prepare a Will that expresses your wishes fully and in a way that you can be sure is legally binding.
- It gives you the reassurance of knowing your estate will be expertly and professionally handled.
- TOWER Trust’s expertise in estate administration (120 years of experience) can save the family all the worry of completing the detailed steps involved in administering an estate.
- TOWER Trust has the keen understanding of the sometimes-delicate personal, family and emotional issues that can be involved in estate planning.
- As a professional Executor TOWER Trust is impartial and unaffected by family matters.
- TOWER Trust is an organisation and as a result we offer continuity, which an individual Executor cannot offer
| « Court outlines rules for contesting a will | TOWER Funeral Trust summary sheet » |
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