Wills NZ

Making a Will in New Zealand

A will is one of the most important legal documents you’ll ever create. It ensures your assets are distributed according to your wishes and protects your partner, children, and family from uncertainty and disputes.

What Goes Into a Will?

1. Who Receives Your Assets

Beneficiaries:

• Your partner or spouse
• Children and grandchildren
• Other family members
• Friends
• Charities

Distribution options:

• Specific amounts to specific people
• Percentages of your estate
• Specific items (house, car, jewelry)
• Residue (everything left over)

2. Guardians for Children

Critical if you have minor children:

• Who will care for your children
• Alternative guardians (backup)
• Different guardians for different children (if appropriate)
• Testamentary guardian provisions

Without guardianship clause:

• Court decides who cares for your children
• May not be your choice
• Expensive and stressful process

3. Instructions for Your Funeral

Can include:

• Burial or cremation
• Location preferences
• Service type
• Specific wishes
• Budget guidelines

Note: Not legally binding but guides family.

4. Who Manages Your Estate (Executor)

Executor responsibilities:

• Collecting assets
• Paying debts and taxes
• Distributing to beneficiaries
• Managing estate administration

Choose:

• Trustworthy person
• Organized and capable
• Willing to serve
• Backup executor

Can appoint:

• Family member
• Friend
• Professional (lawyer, trustee company)
• Multiple executors

5. Any Special Gifts

Specific bequests:

• Family heirlooms
• Jewelry
• Artwork
• Vehicles
• Personal items
• Sentimental possessions

Be specific: “My grandmother’s diamond ring to my daughter Sarah”

6. Trust Instructions if Minor Children Inherit

Testamentary trust provisions:

• Hold inheritance until children mature
• Protect assets
• Support education and needs
• Control distribution timing

Typical structure:

• Income available for needs
• Capital at specific ages (e.g., 25, 30)
• Trustee discretion

Why a Will Matters

Prevents Disputes

Without a will:

• Family argues over assets
• Uncertainty about intentions
• Court intervention needed
• Expensive litigation

With a will:

• Clear instructions
• Executor has authority
• Reduced conflict
• Your wishes respected

Ensures Children Are Protected

Guardian appointment:

• You choose caregivers
• Continuity for children
• Avoid court proceedings

Financial protection:

• Testamentary trusts
• Controlled distributions
• Educational support
• Long-term security

Avoids Delays and Legal Challenges

Dying intestate (without will):

• Administration Act applies
• Formula distribution
• May not reflect wishes
• Court processes
• Delays (months to years)

With valid will:

• Faster probate
• Executor acts immediately
• Clear authority
• Less court involvement

Provides Clarity for Executors

Executor knows:

• Who gets what
• How to distribute
• Your priorities
• Special instructions

Reduces stress on grieving family.

Legal Requirements for Valid Will

Must Be in Writing

No oral wills in NZ (except limited military exceptions).

Format:

• Typed (preferred)
• Handwritten (valid but higher risk)
• Clear and legible

Testator Requirements

You must:

• Be 18+ years old (or married/in civil union)
• Have mental capacity
• Understand what you’re doing
• Act voluntarily (no undue influence)

Signature Requirements

You must sign:

• At the end of will
• In presence of witnesses
• Your normal signature
• Date the will

Witness Requirements

Two witnesses must:

• Be present together when you sign
• Watch you sign
• Sign themselves
• Be 18+ years old
• Not be beneficiaries
• Not be married to beneficiaries

Witnesses cannot benefit from the will.

When to Update Your Will

Marriage or De Facto Relationship

Marriage:

• Revokes all previous wills automatically
• Must make new will after marriage

De facto:

• Doesn’t revoke will
• But should update to include partner

Separation or Divorce

Separation:

• Will remains valid
• May want to update immediately

Divorce:

• Ex-spouse provisions revoked automatically
• But still update to clarify

Buying a Home

Major asset change:

• Specify home in will
• Coordinate with trust (if home in trust)
• Update asset values

New Children or Grandchildren

Birth or adoption:

• Update immediately
• Include new children
• Review guardianship
• Adjust distributions

Major Asset Changes

Significant wealth changes:

• Inheritance received
• Business sold
• Property purchased
• Major investments
• Lottery win

Update: When assets change substantially.

Starting or Selling a Business

Business ownership:

• Specify business succession
• Shareholder agreements
• Buy-sell arrangements
• Coordinate with business planning

Creating or Updating a Trust

Trust and will coordination:

• Will often pours over to trust
• Testamentary trust provisions
• Residue to trust
• Avoid conflicts

Every 3-5 Years

Regular review:

• Ensure still current
• Changes in law
• Changes in relationships
• Asset updates

DIY Wills vs Professional Wills

DIY Wills

Pros:

• Low cost ($50-$200)
• Quick
• Better than nothing

Cons:

• Easy to make mistakes
• May be invalid
• Ambiguous wording
• Missing important provisions
• No professional advice

Risks:

• Invalid execution
• Challenges more likely
• Unintended consequences
• Tax problems
• Family disputes

Professional Wills

Pros:

• Legally valid
• Comprehensive
• Tailored advice
• Coordinate with trusts
• Reduced challenge risk

Cons:

• Higher cost ($300-$800)
• Takes longer

Cost vs risk: $500 will vs $50,000+ dispute = good investment

Common Will Mistakes

1. Using Witnesses Who Benefit

Problem:

• Witness cannot inherit
• Gift to them void
• May invalidate provisions

Solution: Independent witnesses only.

2. Not Coordinating with Trust

Problem:

• Will and trust conflict
• Assets end up in wrong place
• Confusion for executor

Solution: Professional advice on coordination.

3. Outdated Beneficiaries

Problem:

• Ex-spouse still named
• Deceased beneficiaries
• Missing new children

Solution: Review regularly.

4. No Residue Clause

Problem:

• Assets not specifically mentioned
• Intestacy for remaining assets
• Uncertainty

Solution: Always include residue clause.

5. Unclear Descriptions

Problem: “My jewelry to my daughters”

• Which jewelry?
• Which daughters?
• How split?

Solution: Be specific or use general gifting clauses.

6. No Alternate Beneficiaries

Problem:

• Primary beneficiary dies first
• No backup plan
• Intestacy

Solution: Always name alternatives.

7. Not Considering Tax

Problem:

• Unintended tax consequences
• Beneficiaries pay unnecessary tax
• Estate value reduced

Solution: Professional advice on structure.

Wills and Trusts

How They Work Together

Will typically:

• Deals with personal assets not in trust
• Appoints guardians
• Pours over residue to trust
• Creates testamentary trusts

Trust holds:

• Major assets (home, investments)
• Protected assets
• Assets for long-term management

Mirror Wills for Couples

Each partner has will that:

• Mirrors other’s provisions
• Leaves everything to survivor
• Then to children on second death
• Matching executors and guardians

Benefits:

• Consistency
• Clear plan
• Reduces disputes

Testamentary Trusts in Wills

Will creates trust on death:

• Protects vulnerable beneficiaries
• Controls distribution timing
• Tax benefits for minors
• Long-term management

Common uses:

• Children under 25
• Disabled beneficiaries
• Blended families
• Asset protection

Costs

Simple will: $300 - $500

• Individual
• Straightforward estate
• Standard provisions

Mirror wills (couple): $500 - $800

• Two wills
• Coordinated
• Matching provisions

Complex will: $800 - $1,500+

• Testamentary trusts
• Business interests
• Multiple beneficiaries
• Complex families

Updates: $200 - $500

Codicils: $150 - $300

Storage

Keep originals:

• Fireproof safe at home
• Lawyer’s safe
• Trustee company vault

Copies to:

• Executor
• Spouse
• Trusted family member

Don’t:

• Keep only copy at bank (hard to access)
• Hide where no one knows
• Store in safety deposit box alone

FAQs — Wills NZ

Is a DIY will valid?

Can be valid if:

• Properly executed
• Signed correctly
• Two independent witnesses
• Clear and unambiguous

But risky:

• Easy to make mistakes
• No professional review
• May be challenged
• Unintended consequences

Recommendation: Professional will for anything beyond simplest estate.

Do I need witnesses?

Yes, two witnesses required:

• Must be present when you sign
• Must watch you sign
• Must sign themselves
• Must be 18+ years old
• Cannot benefit from will
• Cannot be married to beneficiaries

Without proper witnessing: Will is invalid.

Can my partner and I make a mirror will?

Yes, very common:

• Each has own will
• Matching provisions
• Leave to each other first
• Then to children
• Same executors

Benefits:

• Consistency
• Clear succession
• Reduced disputes

Must be two separate documents - cannot share one will.

What happens if I die without a will?

Intestacy:

• Administration Act 1969 applies
• Formula distribution
• May not reflect wishes

Typical distribution:

• Partner gets personal items + $155,000 + 1/3 of residue
• Children get 2/3 of residue

Problems:

• Court process required
• Administrator appointed
• Delays
• May not be your wishes
• No guardians appointed

Should my will reference my trust?

Yes, important for:

• Coordination
• Residue distribution
• Avoiding conflicts
• Clarity for executor

Typical clause: “I direct my executor to transfer the residue of my estate to the [Trust Name]”

Get professional advice on correct wording.

Can I change my will?

Yes, three ways:

1. Codicil - Amendment document

• For minor changes
• Attaches to will
• Same formalities as will

2. New will - Complete replacement

• Revokes all prior wills
• For major changes
• Cleaner approach

3. Destroy old will - But make new one first!

How often should I review my will?

Mandatory review:

• Marriage
• Separation/divorce
• Birth of children
• Major asset changes

Recommended:

• Every 3-5 years
• Major life changes
• Law changes
• Relationship changes

Can I leave everything to one child?

Yes, you have testamentary freedom:

• Can choose beneficiaries
• Can exclude people
• Can be unequal

But:

• Family Protection Act allows claims
• Moral duty to provide for dependents
• Can be challenged if unreasonable

Explain reasoning in will or memorandum.

What if my executor dies before me?

Appoint alternates:

• Second executor
• Third executor (if needed)

If no alternates:

• Court appoints administrator
• Usually close family member

Always name backups.

Do online wills work in NZ?

Can be valid if:

• Meet legal requirements
• Properly executed
• Witnessed correctly

Concerns:

• May not suit your circumstances
• Generic provisions
• No tailored advice
• Risk of errors

Better: Use for simple estates only, or get professional review.

Can I disinherit my children?

Yes, but:

• They can claim under Family Protection Act
• Court can override if no moral duty met
• Must have good reasons

Explain reasons:

• In will
• In separate document
• With evidence if needed

Get legal advice if disinheriting.

What happens to my digital assets?

Include in will:

• Social media accounts
• Digital photos and files
• Cryptocurrency
• Online businesses
• Domain names

Provide:

• List of accounts
• How to access
• What to do with them

But not passwords in will (not secure).