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Estate Planning

Four pillars, one plan.

Estate planning is more than just making a will. It's about creating a coordinated structure that protects you during life and provides for your family after.

4
Core elements
3-5 yrs
Review cycle
1
Coordinated plan
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Many people address estate planning piecemeal. They make a will when they buy a house, set up a trust when an accountant suggests it, and think about powers of attorney when a parent's health declines.

This approach creates gaps. Instruments created at different times by different advisers may not coordinate properly. Comprehensive estate planning takes a whole-of-life view, considering your situation now, anticipating changes, and creating structures that work together.

The Foundation

The four pillars of estate planning.

Most comprehensive estate plans include four core elements. Not everyone needs all four, but understanding each helps you see what might be relevant to your situation.

1

Your Will

Directs distribution of your personal assets after death. Names executors, specifies beneficiaries, appoints guardians for minor children.

Covers: Assets owned personally at death
2

EPAs

Protect you during your lifetime. If you lose mental capacity, your chosen attorneys can make decisions on your behalf.

Two types: Property and Personal Care & Welfare
3

Trusts

Not everyone needs a trust. They protect assets, manage wealth for vulnerable beneficiaries, and facilitate business succession.

Note: Significant compliance changes since 2019
4

Beneficiary Designations

Some assets pass outside your will through nominated beneficiaries. KiwiSaver, life insurance, and superannuation schemes.

Critical: Must align with your overall plan
The Real Value

Why integration matters.

The real value of comprehensive planning is seeing how these instruments interact. Each document affects the others.

Will and trust coordination

If you have a trust, your will should work with it, not against it. Your will can appoint replacement trustees, provide for assets not held in trust, and ensure your wishes for trust property are clearly expressed.

EPA and trust interaction

If you lose capacity, who makes decisions about trust property? Your Property EPA attorney may not have authority over trust decisions. Trust deeds should address what happens to your role as trustee.

Consistent decision-makers

The people you name in different instruments should work together coherently. Your executor, attorney, and trustees may be the same or different people, but the relationships should make sense.

Family understanding

When planning is done comprehensively, your family understands the overall picture. They know where to find documents, who to contact, and what your wishes are. This reduces confusion at difficult times.

Staying Current

When to review.

Estate plans should be reviewed when significant life events occur, or every three to five years regardless.

Marriage or divorce
Birth or adoption
Major asset changes
Death of beneficiary
Business changes
3-5 year interval

Trust review is critical

The trustee tax rate increased to 39% from April 2024. The Trusts Act 2019 imposes new compliance obligations. Many trusts established for tax benefits or rest home planning may no longer serve their original purpose.

Right-Sized Planning

Not everyone needs everything.

Comprehensive planning doesn't mean maximum planning. The starting point is understanding your situation: your family structure, your assets, your concerns, and your goals. From there, the appropriate instruments become clear.

Sometimes simpler is better
Sometimes more sophisticated planning is worthwhile
The right plan fits your situation
Basic
Will + EPAs

For straightforward estates with no complex protection needs

Standard
+ Trust structure

For asset protection, business owners, or vulnerable beneficiaries

Comprehensive
+ Succession planning

For intergenerational wealth, complex assets, or business succession

Related Guide

Start with your will - follow our step-by-step guide to the process.

Read the Creating Your Will Guide
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