All you need to know about wills and trusts

All you need to know about wills and trusts ByRuby Harfield

In NewZealand about 50 percent of people don’t have a will.

This means that when they die there may bea long andexpensive processtotracing relatives andassets.

A solicitoratLangleyTwigg Law, Andreea Poanta, said havinga will in place, andregularly reviewing it, is very important.

“Awill is theexpression ofa person’s wishes concerning the transfer of property on their death.

“It is very important that we make one so that our loved ones and dependants arelooked after whenwepass away.”

Creatinga will is simple, quick and affordable.

It only takes one or twomeetings with your lawyer and many places offer online applications for clients.

EnduringPowers ofAttorney (EPAs) areas important asa will when itcomestoprotecting you and yourfamily, Poanta said.

“If yousuffer an injury or illness and you’re unabletomake decisions or manageyour own affairs, having EPAsin place will ensure that your care, wellbeing and financesare takencareof by people you trust,in theway that youwant.

“If something happens and you are unable tomake decisionsfor yourself- and do not have a EPAs in place -it might be necessary for your familytoseek an order from theFamily Court whichcan also bea costly and lengthy process.”

PublicTrust chiefexecutive GlenysTalivai said there’s a common misconception that if you die withouta will your assetswill automatically be passed ontoyour nextof kin.

“However, when someone dies withouta will and they have $15,000 or more in assets(with average KiwiSaverbalances now sittingover $29,000, this is more of us than werealise), it triggersa court processtodecide how your assets are shared.

“So,while there is no legalrequirement in NewZealandtohavea will, dying intestate often results in a process that is time-consuming,costly and distressingfor those you leave behindatan already upsetting time.”

It’s estimated that trillions of dollars will be transferred by oldertoyoungergenerations over the next20– 30 years in what is beingcalled the ‘GreatIntergenerational WealthTransfer’,Talivai said.

“This makes it more important than everto havea will in place to ensure that this transfer happens in theway that youwant ittoand carefullyconsiders all ofthe needs ofyour whanau.

“This means, ofcourse, having those difficult conversations about death, money and the future with your loved ones, including that you may need– or want– to use most or all of your assets before you die.”

Another thingtoconsider isa family trust.

Poanta saidfamily trustsare formed primarily toreduce the potential impact of problems which may or may not occur in future such as: • claims from business creditors; • relationship breakdowns; or • familyconflict following the death of one or bothparents.

A family trust should be designedto protect you andyourfamily, Poanta said.

“In somecases immediatebenefits can be achieved by establishinga family trust.

“Those benefits could include financial benefits from prudent planning or the peace of mind that comes from implementing a planfor the management offamily assets.

“If you wishtoset up a trust,havea chat with your lawyer first, it is important thatyou understand how trustswork, their benefits, disadvantages and what trusteescan andcannot do before you establish it.

“Also as everybody’s situation is different, family trust arrangements needtobetailoredto each person’sparticular situation.”

“We have left a gift in our Wills because we believe the Cancer Society does a great job in supporting those who have cancer.”

Robin & Feriel – giving their gift for the future.

Robin & Feriel, Cancer Society supporters MAIN: LangleyTwigg Law solicitor Andreea Poanta. INSET: PublicTrust chief executive GlenysTalivai. Photos/Supplied

You can help beat cancer for our future generations.

After taking care of family and loved ones, a gift in your Will can impact the future of cancer research, treatment, and care for all New Zealanders.