RNZ's money correspondent Susan Edmunds answers your questions. Photo: RNZ
Got questions? RNZ is launching a new podcast, No Stupid Questions with Susan Edmunds, next month. We'd love to hear more of your questions about money and the economy. You can send through written questions, like these ones, but - even better - you can drop us a voice memo to our email questions@rnz.co.nz
Does a child automatically inherit part of a parent's estate even if the child is not included in the will? Also, if there is no will, does the child inherit?
It is tricky for parents to deliberately stop their kids getting part of their estate.
Under the Family Protection Act, children can make a claim if they feel they have been left out or not given enough.
The Law Commission noted in 2020 that in the 10 years beforehand, at least 93 claims of this type had been lodged.
The court will look at whether the child had a right to be looked after by the person making the will and whether the will-maker breached that duty.
It's generally much easier for people to leave different amounts to their kids than to completely ignore someone.
This is an area the Law Commission has suggested might need change. It suggested maybe limiting the ability to claim to those under 25 or disabled, or in financial need.
As for the second part of your question, when someone dies without a will, their estate is divided up in accordance with the Administration Act.
Your spouse or partner gets your personal possessions, such as your car and household items, the first $155,000 of the estate and one-third of whatever is left over.
The other two-thirds goes to your children, in equal shares.
If you have no children, your partner gets your personal possessions, the first $155,000 and two-thirds of anything remaining.
If you have parents, they get the other third but if you no longer do, your partner gets everything.
If you have children but no partner, the entire estate is left to the children in equal shares.
If you have no partner or children, your parents inherit.
If they are no longer alive, the estate goes to other relatives, or to the Crown if they do not exist.
I'm a 72-year-old male, live alone, mortgage-free, and reliant on the pension. Never in my wildest dreams did I imagine that I'd end up scrimping and scraping to get by.
I'm vegetarian, don't drink, don't gamble, use my car twice a week, once to shop, once to visit the library, and either bike or walk the rest of the time.
My biggest worry is ongoing maintenance, and where to find the strength that that requires. I'm not getting any stronger.
It seems my entire day is spent cooking, cleaning, forever washing something, keeping weeds and lawns at bay, and repairing whatever broke down yesterday.
Believe me, I do know it could be a lot worse.
The thing that I don't understand is: "What percentage of the average wage is the pension based on?"
I read some time ago that the average wage was $84,800 per annum?
My pension of $31,600.00 represents roughly 38 percent of the average wage - 38 percent of the average wage doesn't seem to be something I should be eternally grateful for, but then, beggars can't be choosers, a 'fact' that the vast majority of Kiwis know only too well.
Could you please clear up any misunderstandings I have?
The level of NZ Super is adjusted by the government each year and takes into account inflation and average wages.
The after-tax rate for couples, when you both qualify, is 66 percent of the average ordinary time wage, after tax.
For single people it's about 40 percent, so your calculation is about right.
At the moment, the annual rate, after tax, for a single person living alone is $27,998. Before tax, it's just over $32,600.
For a couple, it's $43,074 after tax.
NZ Super is a bit different from other government assistance in that it has that peg to wages - other benefits are now linked to increases in inflation.
It's not very different to what you can get in Australia, except that Australia's pension is means-tested.
There, the maximum rate for a single person is just over $27,333 a year before tax, although that is due to increase slightly from September. There are supplements available on top of that.
In the UK, the full state pension is about £12,000.
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