Understanding Intestacy Laws in New Zealand - Discover what happens if you die without a Will in New Zealand.

Without a Will, your family may face unexpected complications, financial strain, and legal battles during a time of grief. This is not something any of us want to think about, but it is an important question to consider:

What happens if you do not have a Will?

In New Zealand, dying without a Will—also known as intestacy—means that the law steps in to decide how your estate is divided. You might assume everything will go to your spouse or children, but that is not always the case. The laws of intestacy can lead to outcomes that might surprise you, and they do not always reflect what you would have wanted.

This article will guide you through the complexities of dying without a Will, and why having one in place is one of the most thoughtful and important things you can do for your loved ones.

What Is Intestacy?

Intestacy occurs when someone dies without a valid Will. In New Zealand, the law of intestacy determines how your estate is divided among your surviving relatives. This process follows a strict legal hierarchy, and while it aims to be fair, it does not always reflect the specific wishes of the deceased.

Without a Will, you lose the ability to decide who will benefit from your estate, who will administer it, and how your assets will be distributed.

Who Inherits Under the Law of Intestacy?

Who inherits from your estate when you die without a Will depends entirely on the relationships you had at the time of your death. There is a set legal order for determining who benefits.

Let us break it down:

• If you are married but have no children or surviving parents: Your entire estate will go to your spouse or partner.

• If you are married and have children:

• Your spouse or partner receives personal chattels, the first $155,000 of your estate, and one-third of the remaining balance.

• Your children will share the remaining two-thirds equally.

• If you have children but no spouse or partner: Your entire estate is divided equally among your children.

• If you have no spouse or children, but your parents survive you: Your parents will inherit the estate in equal shares.

• If you have no immediate family: The estate will pass to your siblings, grandparents, or even your aunts and uncles, depending on who survives you.

• If there are no surviving relatives: Your estate ultimately passes to the Crown.

As you can see, intestacy laws can lead to outcomes that may not reflect your personal preferences. This is why having a Will in place is essential if you want to have control over who benefits from your estate.

Who Administers the Estate?

When someone dies without a Will, the person with the largest share of the inheritance usually becomes the administrator of the estate. This person, called the “administrator,” has a legal responsibility to manage the estate, settle any debts, and ensure the assets are distributed in accordance with the law.

However, the person who inherits the most might not always be the best person to administer the estate. For example, they may live far away, be unwell, or lack the time and resources to take on such a responsibility. Unfortunately, under intestacy laws, there are few options for assigning a different administrator.

By contrast, when you have a Will, you can appoint someone you trust to serve as the executor. This allows you to choose the most suitable person for the task, ensuring your estate is handled with care.

The Process of Granting Administration Without a Will

Administering an estate when someone dies without a Will is a more complex process than if there were a valid Will in place. Here is an overview of what happens:

1. Grant of Letters of Administration: If the deceased owned assets worth more than $15,000 or property, the High Court must issue a legal document called "letters of administration". This document allows the administrator to handle the deceased’s assets.
2. Search for Lost Wills: As part of this process, the administrator must advertise to confirm that no Will has been lost or overlooked. This can add delays and increase legal fees.
3. Paternity Orders: In cases where there may be children from a previous relationship, a search for paternity orders must be conducted. This adds yet another layer of complexity to the estate’s administration.

Applying for letters of administration is more time-consuming and expensive than applying for probate, which is required when there is a valid Will. By having a Will, you not only streamline the process but also spare your loved ones the additional stress during an already tough time.

The Benefits of Having a Will

The best way to avoid the complexity of intestacy is to have a Will. Here are just a few reasons why making a Will is the best choice for your family:

• Control Over Who Inherits: A Will allows you to specify exactly who you want to benefit from your estate. Without a Will, the law decides, which may result in your assets going to relatives you would not have chosen.

• Appointing an Executor: With a Will, you can appoint an executor of your choice—someone you trust to handle your affairs in a fair and efficient manner.

• Avoiding Family Conflict: A clear and well-written Will can prevent disputes among family members about who should inherit what.

• Simplifying the Legal Process: Having a Will significantly reduces the complexity and cost of administering your estate, saving your loved ones time and money.

What Happens Without a Will?

Without a Will, your family could face lengthy and expensive legal processes. Here’s what might happen:

• Unexpected Beneficiaries: Your assets may be distributed to family members you didn’t intend to benefit.

• Higher Legal Costs: The process of administering an estate without a Will can be complex and costly.

• Family Conflicts: Disputes may arise over who should inherit what, potentially leading to family rifts.

• Delays in Distributing the Estate: Without a Will, it can take much longer for your assets to be distributed, prolonging the stress for your loved ones.

The best way to avoid these potential issues is to have a legally binding Will in place. This ensures that your wishes are honoured and that your family is protected.

Creating a Will is one of the most important steps you can take to ensure your loved ones are protected and your wishes are respected. Without a Will, New Zealand’s intestacy laws will decide how your estate is distributed, which may not align with what you want.

Save your family from unnecessary stress, legal complications, and financial burdens. Contact our Canterbury-based team today to secure your Will and make sure your estate is managed according to your wishes. Whether you’re in Canterbury or anywhere in New Zealand, we are here to help.

FAQ

What happens if I die without a Will in New Zealand?

If you die without a Will, your estate will be distributed according to New Zealand’s intestacy laws, which may not reflect your personal wishes. The law decides who inherits your assets, and this could result in unintended beneficiaries.

Can I create a Will on my own?

Yes, but it’s recommended that you seek legal advice to ensure your Will is valid and covers all important aspects of your estate. A lawyer can help you avoid common mistakes.

How often should I update my Will?

You should review and update your Will whenever there are significant changes in your life, such as the birth of a child, a marriage, or a change in your financial situation.

What if I want to leave someone out of my Will?

You can exclude someone from your Will, but it’s essential to do this carefully. Some family members, such as spouses and children, may have legal rights to challenge your Will if they are excluded without a valid reason.

How much does it cost to make a Will?

The cost varies depending on the complexity of your estate. Contact us for a personalised quote.