What Happens If You Die Without a Will?
A will is your voice after you’ve gone. It tells people what you want to happen to your money, your belongings, and your responsibilities. But what if you don’t have one?
When someone dies without a valid will it’s called dying ‘intestate’. In this situation the law takes over and that can lead to outcomes you may not have wanted. It also creates extra challenges for the people you leave behind. Here’s what really happens when you pass away without a will.
Who Decides Where Your Belongings Go?
If you die without a will your assets are distributed based on a legal formula set by the government. This doesn’t consider your personal wishes, family relationships, or promises you might have made.
The law usually prioritises your closest living relatives such as your spouse or partner, children, parents, or siblings. However, it doesn’t always mean things are divided fairly or how you would have wanted.
For example, if you have a partner and children your estate is typically split between them. This can sometimes create financial strain, especially if your home or key assets need to be sold to divide the estate.
Who Takes Care of the Process?
When there’s no will someone needs to apply to the court to be the ‘administrator’ of your estate. This person is often a close family member, but they must be approved by the court and that can take time.
Unlike with a will, where you choose your executor, the person managing your estate may not be someone you would have picked.
They’ll be responsible for sorting your finances, paying any debts, and distributing your assets. Without a will to guide them the process can be more complex, delayed, and emotionally difficult.
What Happens to Your Children?
One of the most important reasons to have a will is if you have children under 18. Your will is where you can name a guardian. A guardian is someone you trust to raise your child/children if you pass away.
If you die without a will the Family Court decides who becomes the legal guardian. This could be a family member, or someone else entirely, depending on who applies and what the court believes is in the child’s/children’s best interest.
Having a will gives you a say in this important decision and helps avoid disputes or confusion.
What About Unmarried Partners or Step-children?
Dying without a will can create extra challenges for blended or non-traditional families.
For example, if you’re in a long-term relationship but not legally married or in a civil union your partner might not automatically receive anything. They will have to go through a legal process to make a claim.
Step-children are also not automatically entitled to anything unless legally adopted. Without a will that names them as beneficiaries they may receive nothing from your estate even if you wanted them too.
This is why it’s so important to make your wishes known through a will, especially when your family situation is more complex.
What Happens to Your KiwiSaver or Life Insurance?
Your KiwiSaver balance and life insurance may not automatically go to your loved ones. If you’ve nominated a beneficiary the provider may follow that. If no one is named, or your nomination isn’t valid, it usually becomes part of your estate and is distributed according to intestacy laws.
Having a will helps ensure these funds go to the people you choose without delays or legal complications.
The Risk of Family Conflict
When someone dies without a will it often creates confusion, stress, and disagreement among family members. People may have different memories of what you said or wanted and, without anything written down, it’s hard to settle disputes.
A will provides clarity. It reduces the chance of arguments and ensures your wishes are followed, not guessed at.
It’s Never Too Early to Plan Ahead
No one likes to think about dying but creating a will is one of the most caring things you can do for the people you love. It gives you control, reduces legal hassles, and ensures your assets and responsibilities are handled the way you want.
If you don’t have a will yet, it’s worth taking the time to put one in place especially if you have children, own property, or want to avoid leaving your family with extra stress during an already difficult time.