Part One: AParent’s Guide to Asset and Estate Planning

Estate Planning

9 Jan

I have a confession to make: it wasn’t until my oldest daughter turned four that my husband and I finalised the paperwork for our estate planning (yes, even with the knowledge I have from building Crayon). We were part of the 53% of Kiwi adults who don't have a will yet, according to the Commission for Financial Capability.

The process took us over eighteen months - so why did we drag our feet? While I’d like to say that life got in the way (another child, plus launching Crayon!), that’s not entirely accurate. As is the case with many couples, nutting out the details of our estate plans has required honest and uncomfortable conversations.

Like me, I’m sure you care a great deal about who looks after your child if you’re no longer around, you care who makes decisions about your well-being and money if you’re unable to, and you’d like to have a say on your funeral arrangements and final resting place.

Estate planning essentially makes these wishes legally binding. By setting this out now, you can ensure things end up how you intend them to and reduce the likelihood of family tensions.

Even if your situation is relatively straightforward, it’s still worth addressing estate planning. On average, it takes six to twelve months to distribute your assets after you pass away. If you don’t have a will in place, distributing your assets could be subject to further delays and costs, leaving your family waiting for even longer.

“It’s an act of love, made in advance.”

— Former New Zealand Retirement Commissioner Diane Maxwell

We’ve created this series with Sarah Kelly, a mother of two and a Senior Associate in the Private Wealth team at Dentons Kensington Swan, one of New Zealand's leading commercial law firms.

Together, we break down the main legal documents to consider and step through the key decisions you need to make. We’ve also included conversation starters because we know just how tricky it can be to talk about this topic. Whether you're a single parent, part of a blended family, or in a more traditional setup, this guide is for you.

While our previous series, such as Investing for Your Kids and Personal Insurance, were designed to be read in order, this one is more of a pick ‘n’ mix situation. Jump to the section that’s top of mind for you.

We know asset and estate planning are unique to each person’s circumstances, so this guide is designed to help you engage with your lawyer, not replace them!

We’re grateful Sarah shared her legal expertise and first-hand experience advising clients with us - while she is on parental leave, no less.

This is part of Crayon’s mini-series on asset and estate planning for parents:

Now for the important legal part: The information we provide is general and not regulated financial advice for the purposes of the Financial Markets Conduct Act 2013. Please seek independent legal, financial, tax or other advice in considering whether the content in this article is appropriate for your goals, situation or needs. The information in this article is current as at 13 December 2022.

All of our content is independent. Crayon provides you with accurate and valuable information you can use to make smart money moves for your family. We work with people we respect, and all collaborations are unpaid.