Have you thought about what might happen to your KiwiSaver money, when you pass away?
It could be quite a chunk of money and you’d want it to go to the people you want, right? If you have a will then you get to decide who your estate (including any KiwiSaver money) goes to on your death. If you don’t have a will, then the law sets out how your estate will be divided, which can lead to unnecessary delays and stress, at a time when your loved ones are already dealing with so much.
The average balance for a member of Aon KiwiSaver Scheme is now $21,449. Anyone who passes away with assets over $15,000 (including KiwiSaver), will need to have a will so that probate can be granted for assets to be transferred to their estate.
Probate, granted through the Courts, is a legal document required to close Kiwisaver accounts with a balance over $15,000. Having a will speeds up the probate process and ensures your KiwiSaver money is distributed as you’ve specified. If you die without a will, the court will decide how to divide your estate without your input, and this can cause unnecessary delays and additional costs.
Make sure you tell your next of kin who your KiwiSaver Scheme provider is. They will need to contact the scheme provider to discuss the documentation required to finalise and pay out the money that has accumulated in your account.
If you don’t already have a will, we recommend you seek legal advice to set this up. If you’re not sure where to start, you can visit the sorted website to learn more.
If you have any further questions please get in touch with us.