Q I have heard that it can be difficult for executors to withdraw the money from a KiwiSaver account when a member passes away. Why is this and is there any way I can make it easier?
A It sounds like you already have a valid will in place, which is a very good start.
In the event of your death your executors will usually sell your assets and distribute the proceeds to your beneficiaries.
As we get older, we can simplify our affairs, and this will make it easier for our executors when we pass away. This may include cashing up your KiwiSaver and other investments and transferring the proceeds into a bank account for easy access. You should list your assets and leave clear instructions for your executors. This may be easier to achieve for those who die of old age or perhaps after a long illness, but less straightforward if the death is unexpected.
KiwiSaver providers are required to administer your estate in line with New Zealand law. KiwiSaver funds do not automatically pass to a surviving spouse or partner. If you make a will you can specify who you would like to receive the proceeds of your estate, including the proceeds of your KiwiSaver account. It's never too early to plan for this. If the balance of the fund is over $15,000 then the executor(s) are required to apply for probate through the New Zealand High Court in the same way they are required to for any other investments or assets over $15,000.