The inheritance laws in New Zealand significantly impact how individuals should consider making a Last Will and Testament.
Understanding these laws can guide how you structure your Will so that you can ensure your wishes can withstand legal scrutiny, reduce the likelihood of successful disputes, and adequately provide for those you intend to benefit.
1. The moral duty to provide
Under the Family Protection Act 1955, a person has the moral duty to provide for certain family members (e.g., partners, children, and sometimes parents). This means, when drafting your Will, you should consider adequate provisions for these individuals to prevent potential claims against the estate. Neglecting this duty could result in the court reallocating estate assets in favour of claimants.
2. Testamentary promises
The Law Reform (Testamentary Promises) Act 1949 allows for someone to make a claim against an estate if they believe the deceased made them a promise in return for services or work, which was not fulfilled in the Will.
So, if you have made such a promise, it’s crucial to explicitly fulfil the promise in your Will. If you do not intend to keep your promise, you should tell the person you made the promise to and provide compensation for the services or work before your death. Taking these actions can reduce the risk of any successful claims against your estate.
3. Relationship property
Considering the Property (Relationships) Act 1976 anyone in a partnership must be mindful of how to address joint property in their Will. This includes understanding the distinction between separate and relationship property.
While you can gift your separate property, you cannot give away your partner’s share of relationship property in your Will. When you pass, your partner can choose to accept what they receive under your Will or apply to the court for half of the relationship property.