Understanding Inheritance Rights When a Partner Moves In

Questions surrounding inheritance can be complex, particularly when relationships evolve over time. A recent inquiry to RNZ raised concerns about the potential implications for property ownership when a father passes away without a will, especially when a long-term partner has moved into the family home.

In the scenario presented, the father owns a house and has a partner who has resided there for several years. As questions arise about the distribution of assets upon his death, it is essential to understand how the legal framework operates in such situations.

Legal Context of Dying Intestate

When an individual dies without a will, the legal term used is “dying intestate.” In New Zealand, this situation invokes the Administration Act, which dictates how the deceased’s estate will be allocated. According to Justine Wood, a specialist trustee at Public Trust, the father’s partner may have a legitimate claim to a portion of the estate.

Wood detailed the potential entitlements: “Based on the family circumstances you’ve outlined, the partner may be entitled to receive the personal chattels, such as vehicles, furniture, and jewellery, the first $155,000 of the estate, and a third share of the remainder of the estate.” This distribution is contingent upon the couple meeting the legal criteria of having a de facto relationship at the time of the father’s death.

The remaining two-thirds of the estate would typically be divided equally among the children. Understanding these entitlements highlights the importance of having an estate plan in place, even in informal living arrangements.

Defining De Facto Relationships

The Property (Relationships) Act provides a clear definition of a de facto relationship. According to this legislation, a de facto couple must be at least 18 years old, living together, and not legally married or in a civil union. Various factors are considered when determining the existence of such a relationship, including the duration of cohabitation, shared financial responsibilities, and mutual commitment to a life together.

Given these regulations, it is advisable for individuals in similar situations to consider drafting a will. While a will can clarify intentions regarding asset distribution, it is crucial to recognize that partners may still have rights under the Property (Relationships) Act. Should the father wish to ensure that the property is inherited by his children, a contracting out agreement may be necessary to delineate these terms clearly.

The complexities of inheritance law underscore the importance of proactive estate planning. Without a will, the administration of an estate can become costly and time-consuming, causing additional stress for surviving family members.

In conclusion, anyone navigating similar circumstances should seek professional legal advice to ensure their wishes are accurately reflected and that their loved ones are protected from potential disputes in the future.

For those interested in broader financial questions, RNZ is launching a new podcast, No Stupid Questions with Susan Edmunds, next month. This platform will provide an opportunity for listeners to submit inquiries regarding money and the economy, fostering a community of informed discussions.