Why Wills Aren’t Just for the old or wealthy: A Young Adult’s Guide

10 things to think about when making a Will.

1.  Whether you are in a relationship?

· Is your relationship considered a de facto relationship and therefore falls under the Property (Relationships) Act or the Family Protection Act.

· Were you married, separated but not yet divorced?

· How are your assets owned? Jointly, Tenants in Common in a Family Trust?

· Do you have a contracting out agreement?

2. If you have young children, who would you appoint as their guardian?

· If your children are under 19 years old, it is crucial to consider appointing a guardian, not doing so may result in the courts deciding this for you.

· When choosing a guardian, consider factors such as their values, parenting skills, financial stability, age, health, location, and family circumstances. Base your decision on what's best for your children, not obligation.

· You can name more than one guardian, and having a backup is wise.

· Remember that you can update the named guardian if circumstances change for you, your children, or the chosen guardian.

3. Do you have a Blended Family?

· Do you have children from a previous relationship. Are you wanting to provide for your partner as well as your children.

· A life interest may be necessary, whether it be a life interest in your share of property, or a life interest in the income earned from your investment portfolio, these are things we can discuss and discuss the practical implications there of to work out the best situation for you.

4. Who should be your Executor?

· The executor is responsible for carrying out the instructions in the Will, such as paying off any debts, distributing property to beneficiaries, and handling any other matters related to your affairs.

· Being an executor can be a big responsibility, as it involves managing legal and financial matters, communicating with family members and beneficiaries, and making important decisions on your behalf.

· People who are married or in a long-term relationship often nominate their spouse/partner. You can nominate anyone you trust for this role (preferably someone in New Zealand). 

· You can appoint more than one executor and you may also include a back-up executor if the first executor(s) were unable or unwilling to act. 

5. Whether you have any burial or cremation directions?

· Frequently, individuals avoid discussing these matters, and even if such conversations occur, they may be infrequent. Given that years can elapse between these discussions and the actual need, memories may fade, making it challenging to recall your wises.   

· By detailing your burial or cremation preferences in your Will, you enable your wishes to be respected, mitigate the likelihood of disputes, and provide your family with clear guidance.

· If you have a clear preference, we strongly advise incorporating it into your Will.

6.   Whether you want to make any specific gifts?

· Gifts are made before the balance of your estate (known as the Residue) is divided between your beneficiaries. 

· A gift refers to a specific item, amount of money, or other asset that is left to a particular person.

Examples: 

• I give my diamond ring to my daughter Emma

• I give my art collection to my son Jack

• I give the sum of $5,000.00 to St John New Zealand 

• I give my partner Rose, a life interest in the income earnt from my share portfolio, following my partner’s death, I give my share portfolio equally to my children as tenants in common in equal shares.

7. How should your residue be divided.

·  The residue of an estate refers to the remaining assets and /or property that are left over after all debts, taxes, and specific gifts have been distributed to beneficiaries. 

· The residue beneficiaries tend to be the people you wish to benefit the most from your estate. People in a relationship generally name their spouse / partner as the residuary beneficiary.

· People with children may name their children as residuary beneficiaries.

· You may choose to leave the residue to your parents or siblings or a charity.

· You can choose to give a percentage (or a fraction). You can give the residue absolutely or with conditions - we can discuss this in our meeting. 

· Please also consider what should happen if your chosen beneficiary dies before you - this is known as a gift-over.

For example, I give the residue to my partner Rose, however if Rose does not surivie me (eg dies at the same time) I give the residue to my children and if more than one equally between them.

Alternatively, it might say, I give the reside to my children equally as tenants in common, however should any of my children die before me or attaining a vested interest, I give their share to their children and if more than one equally between them.

We can discuss this in our meeting. 

8. Do you have a Trust?

· Do you know who are the current trustees?

· Do you know if the Trust currently owes you money? If so, it would be best practice to include a forgiveness of debt clause within your Will, to ensure the executors of your estate are not forced to require payment from the Trust to your personal estate.

· Does your Trust Deed permit you to appoint replacement trustees in your Will?

· Does your Trust Deed permit you to pass on the powers of appointment in your Will?

· Does your Trust Deed permit you to appoint beneficiaries?

· Are the trustees you and your partner? What happens if you passed away together in an accident? How would the Trust operate? Who would be the trustees? Appointment a replacement trustee in your Will, will save you thousands in legal fees if you did not account for this.

9. Do you have Overseas Assets?

· Do you have a Will where those assets are held?

· Does that Will clearly state that it only relates to that Country?

· Are you aware of the legal and tax obligations you have in that Country when you pass away?

10.       Do you have digital assets?

· It would be best to compile a list of your crypto, where it is stored and any usernames, passwords, private keys or other details (such as login details for the platform used as part of any two-step authentication) for your Executors. Make sure to create and store this offline.

· It may be prudent to provide a paper copy of this to be stored with your Will or provide information of some sort to your Executors of where the record can be found.   If your Executors cannot access your crypto, they cannot transfer it to any of your intended beneficiaries.

· Once this record is established, it is essential to frequently update it as your crypto collection changes.

· Consider any possible hurdles your Executor may face in accessing the crypto, particularly in regard to two-step authentication and third-party holder rules of access.

· The qualities one might look for in a traditional Executor may not translate well when it comes to navigating the complexities and novelty of digital assets. A will-maker with crypto should ensure at least one of their chosen Executors has a degree of familiarity with crypto and other digital assets.

· Review your Will (or create a Will if you do not have one) and consider if you would like to specifically gift any of your crypto. Any crypto not assigned to a specific beneficiary will fall into your residue and be distributed in accordance with the residue clause of your Will.