Our inheritance law could be in for a shake-up to bring the distribution of assets upon death more in line with modern day attitudes and values.
A lot has changed since the mid 1960’s when the law first came into being and it has failed to keep pace with the diversity of today’s family living situations.
The new Inheritance (Claims Against Estates) Act would direct how an estate is distributed if a person dies intestate or without a will; uphold a surviving partner’s right to a division of relationship property when their partner dies; and give family members and partners the right to challenge a will when someone dies by providing clarification of the legal test for when and how, certain family members can claim against an estate despite the will or intestacy laws; as well as have regard for tikanga Māori.
The court would be able to recover property that has been passed to a third party when someone dies if the estate no longer has sufficient property to fulfill other successful claims made against it.
The Government will decide what, if any, of these changes will be enacted. This far out, the area of inheritance law seems uncertain, but what we can be sure of is the Government’s focus on this space is certain to bring about change.
In our view, having a robust will and/or family trust continues to provide comfort and certainty your wishes will be carried out, and your assets distributed accordingly. It will also minimise the chance of claims against your estate.
If you have any concerns in light of the proposed change, or would just like to discuss your options, please get in touch. We’re here to help.