The Importance of Creating a Will
Published on Wed Jul 24 2024 in Community
Creating a will can seem like a daunting task, often left to the bottom of a long list of life’s admin duties. However, writing a will is not as complicated as it appears and can provide immense peace of mind for both you and your loved ones.
1. It can save you and your family time, money, and stress.
If you have any asset worth over $15K, then your estate must pass through a formal administration process when you die. This process is longer and more expensive for your family if you don’t have a valid will and your assets will be distributed by a legal formula, which might not be what you wished. Find out more here.
2. It gives you control over your estate.
A will lets you set out who you want to manage your estate and who you’d like to receive your assets. Having a valid will that accurately reflects your current situation is the best way to help make sure that the things that matter go to the people or organisations you want it to go to. You can also leave a ‘statement of wishes’/ ‘statement to accompany’ to explain why you’ve made your decisions.
3. Avoid Family Disputes.
A clear, well-crafted will has a habit of reducing the potential for family disputes. By outlining your wishes explicitly, this clarity helps prevent misunderstandings and conflicts among your loved ones. Knowing that you’re following a loved one’s wishes can often be very helpful for family members at a tough time.
4. Provide for Minor Children.
If you have kids under 18, you can nominate a testamentary guardian for them in your will, who will help oversee your child’s interests and upbringing and help ensure that they are brought up in a way that matches your values as a family. Find out more about guardianship here.
5. Protect Your Pets.
To all the pet parents out there ... your will can name a caretaker for your pets, making sure they’re taken care of. You can also allocate funds for their care, which will provide additional peace of mind.
6. Leave a Legacy.
Your will can reflect your charitable desires, allowing you to leave part of your estate to a charity or community organisations of your choice. This supports the causes you care about and helps preserve your legacy.
7. Provide Funeral Instructions.
Including funeral instructions in your will can guide your loved ones and reduce their burden during a difficult time. These instructions are great for your family to know what you like and how you would like to share this final moment with them.
8. Manage Digital Assets.
Include instructions for handling digital assets like Social Media profiles and digital files in your will. You can designate a digital executor to manage these assets and ensure your digital legacy is dealt with as you wish. It helps to keep details for your accounts, including banks, investments and insurance in one place and to let your executor know where they can find this information to make their job easier.
Writing your will is easier than ever with online tools and services. While professional advice is recommended for complex estates, many people can prepare a will independently using reliable online resources.
At Momentum Life, we have a partnership with Public Trust that offers our customers 20% off their online Will and Enduring Power of Attorney. For more info, click here: Wills, EPAs, Trusts & Grants Services | Public Trust NZ
The content provided in this article is for information purposes only. The information is of a general nature and does not constitute financial advice or other professional advice. To the extent that any of the content constitutes financial advice, it is limited to Momentum Life products only and does not consider your specific financial needs or goals. You should consider whether the information is appropriate for you and seek independent professional advice, if required.
All product information is correct at the time this article was published. For current product information, please visit the Momentum Life website.