What happens to your KiwiSaver if you don’t have a will?
If you pass away as a KiwiSaver member without a will, your KiwiSaver funds become part of your estate. Your provider can’t pay your KiwiSaver savings directly to specific beneficiaries; it will always go to your estate.
Without a will, the distribution of your assets, including your KiwiSaver, becomes more complex. The court will appoint an estate administrator, typically a close relative, to oversee the distribution of your assets. However, the law, not your intentions, dictates who receives your KiwiSaver savings, leading to a potentially longer process.
For KiwiSaver account balances under $15,000, in the absence of estate administration through the courts, specific individuals like your partner, children, or someone caring for your children can apply to access the funds.
Having a will is crucial as it ensures your KiwiSaver and other assets are distributed according to your wishes. With a will in place, your KiwiSaver account balance will be paid to your estate and distributed as specified. If you pass away without a will, your assets, including your KiwiSaver, will be distributed according to the laws of intestacy, determining who will inherit your assets.