Most young New Zealanders don't think about wills or estate planning. But every adult, even a 20-year-old, needs to understand what happens to their money, property, and decisions if something goes wrong. This guide covers why wills matter (even for young people), what happens if you die without one (intestacy), how NZ's property relationship laws can override your will, what an enduring power of attorney is and why it's different from a will, executor responsibilities, and approximate costs.
NZ's Administration Act 1969 sets out fixed rules. You don't get a say:
| Situation | Who Gets What |
|---|---|
| Spouse/partner, no children | Spouse/partner gets everything |
| Spouse/partner + children | Partner gets personal chattels + $155,000 + 1/3 of remainder. Children share 2/3 of remainder. |
| Children, no spouse | Children share equally |
| No spouse, no children | Parents, then siblings, then extended family in statutory order |
| No traceable family | Crown (government) takes everything |
Unmarried de facto partners ARE included (if the relationship meets the 3-year threshold under the PRA), but proving it adds cost, delay, and stress to an already difficult time.
This is the law most people don't know about. The PRA says relationship property (assets acquired during a relationship of 3+ years) is split 50/50 on death or separation, regardless of what the will says. This means:
Understanding PRA is critical for blended families, second marriages, and anyone with children from a previous relationship.
The executor is the person who carries out your will. They collect assets, pay debts, distribute to beneficiaries, file tax returns, and close accounts. Choose someone who is trustworthy, organised, and willing. You can name more than one. Professional executors (lawyers, Public Trust, Perpetual Guardian) charge fees (typically 1 to 5% of estate value). A trusted family member or friend does it for free but needs to be capable.
| Option | Cost | Pros | Cons |
|---|---|---|---|
| Will kit (stationery shop) | $30 to $50 | Cheap, fast | Easy to make errors that invalidate the will |
| Online will service | $100 to $200 | Guided, convenient | No personalised legal advice; complex situations may be missed |
| Lawyer | $300 to $600 | Tailored, legally robust, considers PRA | More expensive; need an appointment |
| Public Trust | $250 to $500 | Widely available, includes storage | May push their own executor services |
For straightforward situations (single, no children, simple assets), a DIY or online will may suffice. For anyone with property, children, a partner, blended families, or business interests, use a lawyer. The $400 is trivial compared to the cost of an invalid or disputed will.
Update your will when: you marry or enter a de facto relationship (marriage automatically revokes a previous will in NZ), separate or divorce, have children, buy or sell property, move countries, or a named executor or beneficiary dies. Review every 3 to 5 years even if nothing obvious changes.
An Enduring Power of Attorney lets someone you trust make decisions on your behalf if you become mentally incapable (stroke, dementia, serious accident, coma). It is NOT the same as a will. A will takes effect when you die. An EPA takes effect while you're alive but unable to make decisions.
| Type | What It Covers | When It Activates |
|---|---|---|
| EPA for Property | Financial decisions: bank accounts, property, investments, bills, taxes | Can activate immediately (you choose) or only on incapacity |
| EPA for Personal Care and Welfare | Health decisions: medical treatment, living arrangements, daily care | ONLY activates when you lose mental capacity |
You can appoint different people for each type. For example: your sibling for property (they're good with money) and your partner for personal care (they know your health preferences).
Pick someone who: you trust absolutely, is practical and organised, understands your values (especially for personal care), is willing to serve, and ideally lives in NZ. You can have more than one (acting jointly or independently). Include a successor in case your first choice can't act.
What a complete estate planning package costs for a young couple:
De facto partner of 4 years. No will. Died suddenly in a workplace accident. Left a house, $80,000 KiwiSaver, and a car.
Lesson: A $400 will would have avoided $35,000 in legal costs and 18 months of stress. Even young, healthy people die unexpectedly.
Had a stroke at 58. Could no longer manage finances or make medical decisions.
Lesson: EPA setup costs $300. Not having one can cost $8,000+ and months of chaos.
Remarried at 55. Will left everything to children from first marriage. Wife got nothing in the will.
Lesson: The PRA overrides your will for relationship property. If you're in a second relationship with children from a first, you MUST get a contracting-out agreement (prenup) or accept that your will doesn't control relationship property.
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