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\nRNZ’s money correspondent Susan Edmunds answers your questions.
\nPhoto: RNZ\n<\/p>\n
Got questions? RNZ is launching a new podcast, No Stupid Questions with Susan Edmunds, next month.<\/b><\/p>\n
We’d love to hear more of your questions about money and the economy. You can send through written questions, like these ones, but – even better – you can drop us a voice memo to our email <\/b> questions@rnz.co.nz.<\/p>\n
What happens if my father owns a house, but now has a partner for several years who moved in to the house and has put the power in her name to prove she’s lived there for a certain time. If my father dies before her with no will, will she get the house or us kids? <\/b><\/p>\n
Justine Wood is a specialist trustee at Public Trust and helped me answer your question.<\/p>\n
Basically, when someone dies without a will, it’s referred to as “dying intestate”. That means specific legislation comes into play that determines who will get which bits of the person’s estate.<\/p>\n
That means the partner may well be entitled to a share of the house.<\/p>\n
“Based on the family circumstances you’ve outlined, the partner may be entitled to receive the personal chattels, such as vehicles, furniture and jewellery, the first $155,000 of the estate and a third share of the remainder of the estate,” she said.<\/p>\n
“This will depend on the couple meeting the legal criteria of having a de facto relationship at the time. The remaining two thirds of anything left would be distributed equally between his children.<\/p>\n
“Administering an estate when there is no will can be costly and take longer to sort out. Having a will helps your family understand what you’d like done with your estate after your gone – and it makes the process of managing your passing less stressful on loved ones.”<\/p>\n
The Administration Act defines de facto relationship in line with the Property (Relationships) Act.<\/p>\n
This said a de facto relationship is a couple who are at least 18, living together as a couple and not married or in a civil union.<\/p>\n
Things that might be taken into account are the duration of the relationship, the nature and extent of common residence, whether there is a sexual relationship, the degree of financial interdependence and dependence, ownership of property, the degree of mutual commitment to a shared life, the care and support of children, performance of household duties and the reputation and public aspects of the relationship.<\/p>\n
It would make sense for your father to draw up a will. Even with a will, his partner may have rights under the Property (Relationships) Act – they may need to sign a contracting out agreement if he wants to ensure that the property is left to you.<\/p>\n
Are there any disadvantages in keeping KiwiSaver funds there in KiwiSaver after retirement age? Is it best to fill the forms now and take some, if not all?<\/b><\/p>\n
There really is no disadvantage to leaving your money in KiwiSaver once you’re retired, if that’s what makes the most sense for you at the moment.<\/p>\n
It would be a good idea to get some advice on the funds your money is invested in, though.<\/p>\n
Depending on how much you’ve got in your KiwiSaver, it might make sense to divide it up and invest it in a few different funds.<\/p>\n
You might have some in a conservative or even cash fund that you can tap into if you need it in the near term, for unexpected bills or things like that, some in a balanced fund for the medium term and then some money in a growth fund for the longer term.<\/p>\n
The growth fund will probably bump around a bit but should deliver better returns overall, which might help make your money last longer through your retirement.<\/p>\n