A milestone worth pausing for

Paying off your mortgage is a major financial milestone. It’s also a natural moment to check that your Will and Enduring Powers of Attorney (EPAs) still reflect your life and wishes.

These documents are easy to put off, and most people only update them when something prompts it – a wedding, a new grandchild or a health scare. Waiting for a trigger can mean they’re out of date when they’re needed most.

Why your will matters

A Will sets out who receives what you leave behind and who manages your estate. Without one, the Administration Act 1969 decides who inherits using a fixed formula, which may not match your wishes. Stepchildren, for example, have no automatic entitlement.

A few things people are often surprised to learn:

• Marriage or a civil union automatically cancels an earlier Will, unless it was made with that marriage in mind.
• KiwiSaver savings can’t be left to a nominated beneficiary. On death, the KiwiSaver account balance is paid into the estate and shared out under the Will, or the intestacy rules if there isn’t one.
• Estates worth more than $40,000, or that include a home in your sole name, usually need probate from the High Court. A clear, up-to-date Will makes this simpler for your family.

Over the life of a mortgage, children grow up and relationships change, so the people you once named may no longer be the right choice.

Do I need an Enduring Power of Attorney?

A Will takes effect after you die. An EPA covers the time before that, if illness or injury means you can’t make decisions for yourself.

In New Zealand, not even your spouse or adult children have automatic authority to act for you. Without an EPA, your family may need to apply to the Family Court, which can be slow and costly at an already difficult time.

There are two types, and most people benefit from having both:

• Property – covers your finances and assets. It can apply straight away or only once you lose capacity.
• Personal care and welfare – covers decisions about your health, treatment and living arrangements. It only takes effect if you lose mental capacity.

An EPA can only be made while you have capacity, so it’s best arranged well ahead of time.

Your mortgage-free checklist

• Review your insurances. Some cover, such as mortgage protection, may have been set up mainly to repay the loan. Check with your insurer or adviser whether it still suits your needs – you may be able to reduce costs.
• Check how your home is owned. Joint ownership or shares can affect whether it passes under your Will. Your lawyer can confirm this.
• Update your Will to reflect your current family and wishes.
• Set up or review your EPAs and check the people you’ve named are still willing and able to act.
• Check your KiwiSaver account details are current and your fund suits your timeframe to retirement.
• Let the people you’ve named know where your documents are kept.

Caring for those who come after us

Putting these documents in place is an act of care and good stewardship. It gives the people we love clarity and peace of mind when they need it most.

If you’re a Christian KiwiSaver Scheme member with questions about your KiwiSaver account, our team is happy to help. For your Will and EPAs, speak with a lawyer, or a trustee company.

The above information is for information purposes only and is not financial advice. Past returns are not a guarantee of future returns. We recommend you seek advice from a licensed financial advice provider when making decisions about your investments.

Christian KiwiSaver Scheme, The Retire Fund, and The New Zealand Anglican Church Pension Fund are managed and issued by The New Zealand Anglican Church Pension Board (trading as Anglican Financial Care). The Product Disclosure Statements can be found here: https://angfincare.nz/news-and-knowhow/forms-and-documents/