Blog 4 - Estates

DYING WITHOUT A WILL OR DYING INTESTATE  -  Richard Watling August 2020   

Dying Intestate means “passing away” without a will. Intestacy can also arise through a person dying where the will fails to take effect because of defects in the will. A partial intestacy may also arise where defects in the will render a part or parts of a will void. This article will discuss dying without a will. 

 In a will the Will Maker specifies who will be the executors and trustees of their estate and how their assets will be distributed.  When a person dies intestate the Administration Act 1969 determines who is entitled to apply to become the administrator and who benefits from the assets of the estate.

Once it has been determined that no will exists for the deceased then be made to the High Court for Letters of Administration (LOA).

Who Is Entitled To Benefit From An Intestate Estate? 

Beneficiaries should be contacted and provided with information about their respective entitlements. Care must be taken to verify the identity of these persons especially if beneficiaries reside overseas. Your legal representative should be able to assist with this process. The Administration Act 1969 (the Act) sets out the rules determining who will benefit from the estate. The table can be found here http://www.legislation.govt.nz/act/public/1969/0052/46.0/DLM393303.html . 

Typically the surviving spouse/de facto partner / civil union partner will receive the personal chattels. The Act then sets out a formula for who receives the balance of the estate.  

 What Steps Are Involved? 

Once your legal representative has applied for LOA and begun preparing to uplift the funds of the estate and deal with any real property or assets, a statement of financial position for the estate is usually prepared and sent to the administrator in anticipation of the distribution(s) of estate funds. 

 Conclusion

To avoid delays and extra cost in administering your estate we strongly recommend that you, or anybody who is 18 years of age or older, create a will. If you do have a will, consider reviewing it every 5 years. 

With the advent of Kiwisaver over a decade ago many Kiwisaver members will have property in excess of $15,000.00 and without a Will in place your administrator(s) would be required to obtain LOA.

To ensure your assets are divided amongst your loved ones, consider making a will.  Phone or email me now to create or review your will.

Richard Watling LLB 027 700 1622  - Richard@integritylaw.co.nz