Why do first home buyers need a Will?

When you purchase your first home, you acquire a significant asset that needs to be protected. A Will ensures your property and other assets are distributed according to your wishes if something happens to you, rather than being distributed according to the default rules of the Administration Act 1969.

What happens if I die without a Will in New Zealand?

If you die without a Will (called dying intestate), your estate will be distributed according to the Administration Act 1969. This can result in significant additional costs for your estate, reduce the inheritance for your family, and cause unnecessary stress for your loved ones during an already difficult time.

How much does it cost to prepare a Will?

The cost to have a simple Will prepared is usually only a few hundred dollars. Many law firms, including Schnauer & Co, offer discounts on Will preparation for first home buyers when they settle their property purchase with them.

How often should I update my Will?

You should update your Will whenever your circumstances change significantly, such as getting married, having children, purchasing property, or when relationships change. It is recommended to review your Will at least every few years to ensure it still reflects your wishes.

Legal Toolkit: The Importance Of A Will

The team at Schnauer & Co's have put together a resource toolkit to highlight some of the common misconceptions that some first home buyers have and provide you with tips on how to avoid some easy mistakes when buying your first home. In this Part 5 of the series (see Part 1), we talk about Wills and why they are an important document to have, especially for first home buyers.

The Importance Of A Will

It is very important to have a Will in place and often this is not considered until people buy their first home or have children. It is also very important to update your Will on a regular basis as people's circumstances can quickly change.

A Will Allows You To Express Your Wishes Concerning:

Whether you would like to be buried or cremated
Any special funeral arrangements
The transfer of property on your death
Special bequests in relation to property
Gifts to charities
Who you would like to look after your children if they are still minors (for example, in relation to their education and upbringing)
Who will look after your pets (for example, if you have two cats, you can state in your Will that your preference is for them to remain a bonded pair after your death)

What Happens Without A Will?

Important: If you die without a Will (called dying intestate), your estate will be distributed according to the Administration Act 1969. This can incur significant additional costs for the estate (which decreases the money for your family to inherit) and can cause unnecessary stress for your loved ones, especially considering that the cost to have a Will prepared is usually only a few hundred dollars.