Father’s Partner’s Rights Explored: What Happens to the House?

In a recent inquiry about inheritance and property rights, a question arose regarding the fate of a house owned by a father who has a partner but no will. The situation raised concerns about what would happen to the property if the father were to pass away before his partner. According to Justine Wood, a specialist trustee at Public Trust, the answer hinges on specific legislation governing intestate succession.

When a person dies without a will, the legal term for this is “dying intestate.” In such cases, the Administration Act dictates how the deceased’s estate will be distributed. In the scenario presented, the father’s partner could be entitled to a share of the house, depending on their relationship status and other factors defined by law.

The legislation suggests that the partner may have rights to personal belongings, which could include vehicles, furniture, and jewellery, as well as the first $155,000 of the estate. If the couple is recognized as being in a de facto relationship at the time of the father’s passing, the partner could also receive a one-third share of the remaining estate. The other two-thirds would be equally divided among the children.

Determining if a couple qualifies as being in a de facto relationship involves several considerations. These include the duration of the relationship, shared living arrangements, financial interdependence, and other commitments. The Property (Relationships) Act outlines these criteria, which are essential in establishing the partner’s entitlements.

The complexities of administering an estate without a will can lead to increased costs and extended timelines. Wood emphasized the importance of having a will to clearly express one’s wishes regarding asset distribution. A will not only aids in easing the burden on loved ones but also clarifies the intended allocation of the estate.

For those contemplating their estate planning, it is advisable to consult legal professionals. In cases where a will exists, partners may still have specific rights under the Property (Relationships) Act. If a father wishes to ensure that his property is inherited by his children, he may need to establish a contracting-out agreement.

In a related financial inquiry, a question arose about maintaining KiwiSaver funds post-retirement. Experts assert there are no inherent disadvantages to keeping funds in KiwiSaver after reaching retirement age. If it aligns with personal financial goals, leaving the money intact can be beneficial.

Nonetheless, seeking advice on the investment strategy of those funds is prudent. Depending on the total amount in KiwiSaver, diversifying investments across different funds may be wise. Allocating some funds to conservative or cash options can provide liquidity for unexpected expenses, while investing in balanced or growth funds can offer better long-term returns.

The discussions surrounding inheritance and retirement funds highlight the importance of proactive financial planning. Engaging with professionals can facilitate informed decisions for individuals and families navigating these complex issues.

For further questions about money and the economy, listeners can tune into the new podcast, No Stupid Questions with Susan Edmunds, launching next month. Questions can be submitted via email at [email protected], including voice memos for a more personal touch.