A: Firstly, this depends on whether you have a will or not. If you have a will, your KiwiSaver funds don't go straight to your beneficiaries. Instead, they become part of your overall estate. The executor you've named in your will is responsible for managing everything.
If you haven't appointed an executor, the court will step in and assign one. This person will need to apply for probate, which is a legal process that confirms their authority to handle your estate. Depending on how complex your estate is, this can take some time.
Once probate is granted, the executor can liaise with your KiwiSaver provider. They'll then follow the instructions in your will or the intestacy laws to distribute your assets.
A. The best way to make sure your KiwiSaver funds go to the people you want is to have a valid will. Your will should clearly state who you want to receive your KiwiSaver savings. It's also a good idea to let your chosen beneficiaries know about your wishes.
A: It can get complex and create delays, even family conflicts, so this is a situation you really want to avoid by getting yourself a will. If you pass away without a will and have a KiwiSaver balance over $15,000, your closest relative must apply to the court to appoint an administrator. According to the Administration Act 1969, the order of closest relatives is spouse or de facto partner, followed by children, then parents, and finally siblings. Once the "Letters of Administration" are issued, the administrator can handle the estate, including the KiwiSaver funds.
The best way to make sure your KiwiSaver funds go to the people you want is to have a valid will.
A. The time it takes to transfer KiwiSaver balances depends on the estate's complexity and the provider's policies. If probate or Letters of Administration are needed, the process can take up to six months. However, if the balance is under $15,000 and the provider permits a simplified release, the process can be faster.
A: If your KiwiSaver account balance is under $15,000, an authorised person such as your partner, your children, or someone caring for your children, can apply for the funds without requiring probate or letters of administration by contacting the KiwiSaver provider directly. However, not all providers will allow this, so it's at the providers criteria.
A: KiwiSaver providers just pay to your Estate, either via the executor of your will or the court representative.
A: Making a will can be daunting and expensive but necessary, especially if you have several assets and family. But having a will ensures that your loved ones do not have to deal with the hassle while they are grieving. We have professional relationships with lawyers, so we can give you options if you wish. It may also be time to think about Enduring Powers of Attorney while you are there. Once this is done, make sure it's updated when material changes happen, like having more kids, getting divorced, acquiring more assets, etc.
But having a will ensures that your loved ones do not have to deal with the hassle while they are grieving.
A: Let's start by knowing who your KiwiSaver and your family's KiwiSaver provider is, so when the time comes, they know who to reach. The same would apply for life insurance cover providers.
A: If you don't know who your KiwiSaver provider is, haven't reviewed it for a long time, or want to look at some options, so we can assist you with sorting that out.
Giovana
About Giovana
Hola, I’m Giovana, and I am a Client Services Manager but also a Financial Adviser here at Velocity. I have 12 years of experience in the industry and one of my passions is to bring excellent customer service, I like to deliver the best experience to our clients and make processes as smooth as possible, to give them the service that I would like to receive. In my outside work life, I am a mum of 2 girls and love dancing, especially Peruvian cultural dances.
Disclaimer:
Giovana Paulin (FSP1007277) is a Financial Adviser with Velocity Financial (FSP95466). No investment decision should be taken based on the information in this blog alone. Please see our disclosure statement on our website.
Always get professional advice
The information shared in this post is meant to be general guide to support you on your journey. When making important decisions about your finances, we encourage you to seek independent financial advice first, tailored to your unique situation. As well as talking with a financial adviser, make sure you talk to your lawyer and accountant too – together they'll help you find the best solution for your specific situation. Our knowledgeable financial advisers are here to help. Check out our website for the details about our financial advisory services in our disclosures https://www.velocityfinancial.co.nz/disclosure-statement.