We’re often sluggish about preparing our wills, fearing the lawyer’s bills that may result. But, believe it or not, it isn’t costly. The expensive part is the administration after your death: these costs come out of your estate and vary depending on who administers the will.
Do-it-yourself
You’re legally entitled to make a will yourself, but just four percent do, according to a Public Trust survey. A DIY job may be fine if your assets are modest and your family relationships orderly. But if not, you’ll probably need legal advice. There are potential downsides to DIY. Experts say homemade wills may create problems if the will-maker’s intentions aren’t clear. Simple errors – for example, the will is not signed or witnessed properly – can also create grounds for challenge.
The professionals
Most people use a law firm or the Public Trust to draw up their will. This doesn’t mean the will can’t be challenged: disgruntled relatives can still pop out of the woodwork to dispute your last wishes. But using a professional should help to ensure the will is valid. Like trustee companies, lawyers’ fees for estate administration can be based on an hourly rate, a task-based rate, a percentage of the gross value of the estate or a combination of these. Before you sign up, you’re entitled to ask what the lawyer’s fees are likely to be. Some law firms may prepare a will for free if you’re doing other business with them. But they usually expect to be named as the executor (that’s how they earn an income).
Your executor
You can choose anyone to be your executor. The person doesn’t have to be a lawyer: they can be a family member or friend. It’s common for people to name a friend or relative and a professional as coexecutors (they’ll administer the estate together). There are advantages in naming a legal expert as an executor because they can deal with legal matters. Probate (authorisation to administer your estate) will need to be obtained from the High Court. Your legal expert can deal with the transfer of any property.
Sue Chetwin, CEO Consumer NZ
Keep informed at consumer.org.nz
Related stories
Native ad body.
Native ad body.
Native ad body.
