Why Estate Planning Matters – And How It Can Protect Your Family

10 October, 2025 | Carolyn Ranson

Planning for the future isn’t just about saving money or buying property—it’s also about making sure your loved ones are looked after when you’re no longer around. That’s where estate planning comes in.

Estate planning is the process of deciding what happens to your assets—like your home, savings, and personal belongings—after you pass away. It also covers important decisions like who will care for your children, how your debts will be handled, and who will make medical choices for you if you’re unable to.

Without a clear plan, your family could face unnecessary stress, legal hurdles, and even conflict. But with a well-thought-out estate plan, you can make things easier for everyone and ensure your wishes are respected.

What Are the Benefits?

Here are some of the key reasons why estate planning is worth your time:

1. Financial Security for Your Family
   You can make sure your loved ones are financially supported by naming beneficiaries and setting up trusts. This helps them maintain their lifestyle and meet future needs.
2. Avoiding Family Disputes
   By clearly stating who gets what, you reduce the chance of disagreements or confusion. A written plan helps keep things peaceful during a difficult time.
3. Reducing Taxes
   Smart planning can lower the amount of tax your family might have to pay. Tools like gifting, trusts, and donations can help preserve more of your wealth.
4. Protecting Your Children
   If you have young children, you can name a guardian to care for them. This gives you peace of mind knowing they’ll be looked after by someone you trust.
5. Making Healthcare Decisions
   Estate planning isn’t just about money—it also includes your health. You can set up documents that explain your medical preferences and name someone to make decisions if you’re unable to.
6. Leaving a Legacy
   Your estate plan can reflect your values. Whether it’s supporting a charity, funding education, or passing down family traditions, you can make sure your legacy lives on.

Common Estate Planning Mistakes in New Zealand – And How to Avoid Them

Even with the best intentions, estate planning can go wrong if certain details are overlooked. Here are some of the most frequent mistakes people make in New Zealand—and how you can steer clear of them:

1. Not Having a Will at All
   Many Kiwis pass away without a valid will, leaving their families to navigate a complex legal process. If you die intestate (without a will), your assets are distributed according to the law—not necessarily how you would have wanted.
2. Outdated Wills
   Life changes—marriages, divorces, births, and deaths. If your will doesn’t reflect your current situation, it could cause confusion or disputes. Regularly reviewing and updating your will is essential.
3. Not Considering Relationship Property Laws
   New Zealand’s relationship property laws can affect how your assets are divided, especially in blended families or de facto relationships. If your estate plan doesn’t account for these laws, your wishes may be challenged.
4. Failing to Appoint the Right Executor
   Choosing someone trustworthy and capable to carry out your wishes is crucial. An executor who isn’t up to the task can delay the process or make costly mistakes.
5. Overlooking Digital Assets
   From online banking to social media, digital assets are often forgotten. Make sure your estate plan includes instructions for accessing and managing these accounts.
6. Not Planning for Incapacity
   Estate planning isn’t just about what happens after death. If you become unable to make decisions due to illness or injury, having Enduring Powers of Attorney (EPAs) in place ensures someone you trust can act on your behalf.
7. DIY Wills Without Legal Advice
   While DIY will kits are available, they can lead to errors or omissions that make the will invalid. Getting professional legal advice ensures your documents are properly prepared and legally binding.

Final Thoughts

Estate planning might sound complicated, but it’s really about protecting the people you care about. With the right advice and a clear plan, you can make sure your wishes are followed and your family is supported.

Contact Us

If you’re ready to start your estate plan including making a Will or putting EPAs in place, or want to review what you already have, our team is here to help. Get in touch today for friendly, expert guidance tailored to your situation. Complete the form below or email suzanne.sumner@smithpartners.co.nz and we will respond to you promptly with details on how you can become a client of the firm.

Note: This article is for informational purposes only and does not constitute legal advice. For personalised guidance, please consult with our legal professionals.