Proper financial planning includes having a valid Will

As humans, we naturally look to the future because, as someone once said, “that’s where we’re going to spend the rest of our lives”. The only problem is, none of us knows for sure what will happen in our future or even how long it will be.

This is one of the key reasons why it’s so important to have as sound a financial plan as possible to help you deal with whatever your future may hold. It’s the reason why you might, for example, have a regular savings plan, or why you’re making regular contributions to a retirement fund, or why you’ve taken out health insurance or life insurance. Equally important is making sure you have a legally valid, up-to-date Will.

Why is it so important to have a valid Will?
If you should die, then leaving behind a valid Will is the only way to ensure that your assets and possessions are distributed to the people to whom you want these to go, and in the way that you want them to be distributed.

Unfortunately, far too many people put off getting their Will sorted, and then suddenly it’s too late. In fact, according to a recent statement from the Commission for Financial Capability, around 50% of all Kiwis don’t have a Will. It’s also been reported that around 1500 New Zealanders die each year without having a legally valid Will.

What happens if you die without a Will?
If you die without a valid Will (or Last Will and Testament) then you’re said to have died ‘intestate’. In such a situation, no-one knows what you want to happen with your assets. As a result, New Zealand’s intestacy laws then come into effect and will ultimately determine what happens to your property, which could be completely at odds with what you might have wished, had you left a Will.

The resulting uncertainty caused by your dying without a Will can put a lot of extra and unnecessary financial and emotional stress on the family members you leave behind. To make matters worse, the intestacy process to sort out your estate is often a long drawn out process, which would mean that your dependents don’t get access to your assets at a time when they need it most. This could even result in them not being able to afford to meet the mortgage payments on the family home, with possibly dire consequences for them.

Is that the sort of legacy you would want to leave behind if you should suddenly die?

When should you get a Will?
While most people know they should have a Will, many, as we’ve seen, don’t have one. Others wait until something significant happens in their lives, such as buying a home, having a child, getting married or divorced, retiring and so on. If you’re in a relationship, it’s your responsibility to not only ensure you get your own Will sorted but also to make sure your partner gets theirs sorted too.

Youth is also no excuse for not having a Will. Younger people naturally tend to want to put off thinking about anything that relates to death. However, it’s important to get your Will sorted once you turn 18, or even before that if you’ve started living independently and earning a living at an earlier age.

If you already have a valid will, while it’s wise to review it at times of significant life-events, we also recommend that you make it a point to review it every few years to ensure that it’s up to date in light of your current circumstances. And if you don’t have a Will yet, then getting one sorted is definitely something to put right at the top of your To Do list for immediate action.

Need advice on how to take care of what matters most to you?
If you want to make sure your loved ones are properly looked when you’re no longer around, then it’s important to take action now to ensure you have the right life insurance in place for your circumstances and that you have a valid Will.

As a provider of specialist insurance services, Bonded NZ Limited can offer expert advice on how to manage a wide range of risks, as well as the appropriate and cost-effective options available for doing so. We have experts to whom we can refer to help ensure our clients get the right life insurance cover for their needs and receive appropriate advice on the matter of drawing up a valid Will. So get in touch with one of the team at Bonded NZ today to find out more about how we can help you take care of what matters most to you.