1 00:00:07,133 --> 00:00:10,453 Speaker 1: You're listening to the Saturday Morning with Jack Teams podcast 2 00:00:10,573 --> 00:00:11,453 Speaker 1: from News Talks. 3 00:00:11,453 --> 00:00:17,013 Speaker 2: Abed McKnight from Opie's Partners is our personal finance expert Yoder. 4 00:00:17,093 --> 00:00:20,653 Speaker 2: Good morning, Good morning Jack, you're cracking the whip this morning. 5 00:00:20,693 --> 00:00:23,533 Speaker 2: I feel like you have like an insight into my 6 00:00:24,013 --> 00:00:27,333 Speaker 2: personal finances and situation and you've come here to give 7 00:00:27,333 --> 00:00:29,333 Speaker 2: me a cautionary tale. 8 00:00:29,813 --> 00:00:32,493 Speaker 3: We are we're talking about wills at the moment, and 9 00:00:32,573 --> 00:00:35,173 Speaker 3: the reason is Jack, like you, I recently got married, 10 00:00:35,213 --> 00:00:37,813 Speaker 3: and whenever you get married, or have a kid, or 11 00:00:37,853 --> 00:00:40,253 Speaker 3: even just as you get older, you really do need 12 00:00:40,293 --> 00:00:43,893 Speaker 3: to think about wills. And this is becoming even more 13 00:00:43,933 --> 00:00:47,693 Speaker 3: important at the moment because these days our family situations 14 00:00:47,693 --> 00:00:50,573 Speaker 3: are a bit more complex. We've got blended families or 15 00:00:50,893 --> 00:00:54,573 Speaker 3: sometimes there are estranged children. And there are a couple 16 00:00:54,573 --> 00:00:56,853 Speaker 3: of tales I want to tell you that that really 17 00:00:56,893 --> 00:00:59,813 Speaker 3: get your brain going. I've got a friend he had 18 00:01:00,253 --> 00:01:05,373 Speaker 3: two children with a previous relationship, and now he's got 19 00:01:05,453 --> 00:01:08,813 Speaker 3: married and he's had another child in his new marriage. 20 00:01:09,333 --> 00:01:12,733 Speaker 3: Now he is sorting out as well at the moment, 21 00:01:12,933 --> 00:01:15,333 Speaker 3: and he's thinking, you know what I'd really like if 22 00:01:15,373 --> 00:01:18,653 Speaker 3: I die? I want my money to go equally to 23 00:01:18,773 --> 00:01:21,933 Speaker 3: my three children? Right, And now his wife is saying 24 00:01:21,973 --> 00:01:24,933 Speaker 3: to him, well, hang on, wait a second, we're splitting 25 00:01:24,973 --> 00:01:27,733 Speaker 3: our assets fifty to fifty, or it's a fifty to 26 00:01:27,773 --> 00:01:31,853 Speaker 3: fifty relationship. I only want my fifty percent if I 27 00:01:32,013 --> 00:01:36,693 Speaker 3: die to go to our one child, because that's my responsibility. 28 00:01:37,053 --> 00:01:40,293 Speaker 3: Your two kids from the previous relationship, I like them, 29 00:01:40,693 --> 00:01:44,173 Speaker 3: but they're not my responsibility. Now he's in a bit 30 00:01:44,213 --> 00:01:46,333 Speaker 3: of a bind to them because he's saying, oh, well, 31 00:01:46,413 --> 00:01:48,853 Speaker 3: wait a second, what do I do with my fifty 32 00:01:48,893 --> 00:01:51,773 Speaker 3: percent if I die? Do I give it equally among 33 00:01:51,813 --> 00:01:54,613 Speaker 3: my three children? But then my first two don't get 34 00:01:54,653 --> 00:01:57,573 Speaker 3: as much. And so what he's decided after them talk 35 00:01:57,653 --> 00:02:00,613 Speaker 3: it out, is she's going to give her fifty percent 36 00:02:00,693 --> 00:02:03,733 Speaker 3: to their joint child, and he's going to split his 37 00:02:04,053 --> 00:02:07,053 Speaker 3: between his first two children. But what he was really 38 00:02:07,093 --> 00:02:10,573 Speaker 3: worried about there Jack was, but is my third child, 39 00:02:10,613 --> 00:02:13,013 Speaker 3: the one that I've had in my current marriage, are 40 00:02:13,053 --> 00:02:15,853 Speaker 3: they going to feel like Dad hasn't looked after them? 41 00:02:17,093 --> 00:02:22,733 Speaker 2: Then there's a night mere scenary, well where that's. 42 00:02:22,653 --> 00:02:24,213 Speaker 3: Where you want to start to talking about it. But 43 00:02:25,173 --> 00:02:27,893 Speaker 3: it's important to say in that situation and that story, 44 00:02:28,413 --> 00:02:31,973 Speaker 3: both members of the couple are acting totally rationally, right. 45 00:02:32,573 --> 00:02:35,453 Speaker 3: She acknowledges that she loves the other two kids, but 46 00:02:35,493 --> 00:02:39,613 Speaker 3: actually the one they've had together, that's that's her primary responsibility. 47 00:02:39,973 --> 00:02:42,013 Speaker 3: And he's thinking, well, I don't want to split my 48 00:02:42,213 --> 00:02:44,573 Speaker 3: half then between the three kids, because then the first 49 00:02:44,613 --> 00:02:48,973 Speaker 3: two get substantially less than the one that we've had together. 50 00:02:49,413 --> 00:02:51,893 Speaker 3: And so when we've got these blended families, we really 51 00:02:51,893 --> 00:02:54,133 Speaker 3: do want to think quite clearly about it. I'll give 52 00:02:54,173 --> 00:02:58,893 Speaker 3: you one more example about where wills can actually end 53 00:02:58,973 --> 00:03:02,893 Speaker 3: up in court. There was a fascinating case down in 54 00:03:03,053 --> 00:03:07,453 Speaker 3: the Waikato where there was a farmer and she had 55 00:03:07,653 --> 00:03:11,413 Speaker 3: three children and the son was estranged. He had moved 56 00:03:11,453 --> 00:03:14,213 Speaker 3: over to Australia when he was very young. They basically 57 00:03:14,373 --> 00:03:18,053 Speaker 3: never talked. Now, the other two children looked after mum 58 00:03:18,093 --> 00:03:21,693 Speaker 3: basically her whole life, but they didn't really get on well. 59 00:03:21,733 --> 00:03:26,213 Speaker 3: When mum passed away, she left over ninety percent of 60 00:03:26,333 --> 00:03:31,853 Speaker 3: the farm to the estranged son who moved over to Australia. 61 00:03:31,893 --> 00:03:34,133 Speaker 3: And so you've got the two daughters who have been 62 00:03:34,173 --> 00:03:37,653 Speaker 3: looking after mum thinking you've left us about three percent 63 00:03:37,733 --> 00:03:40,373 Speaker 3: of the state each. We're going to take this will 64 00:03:40,413 --> 00:03:43,453 Speaker 3: to court and challenge it, and is something that's very 65 00:03:43,493 --> 00:03:46,853 Speaker 3: important for people to understand if you are thinking about 66 00:03:46,933 --> 00:03:50,133 Speaker 3: about wills and your children, and it's this concept of 67 00:03:50,453 --> 00:03:53,413 Speaker 3: moral duty. And so there's a bit of a rule 68 00:03:53,453 --> 00:03:58,093 Speaker 3: of thumb in lawyer circles that generally speaking, parents need 69 00:03:58,133 --> 00:04:01,333 Speaker 3: to leave about ten percent of their estate to each 70 00:04:01,373 --> 00:04:05,413 Speaker 3: of their children. Otherwise it could be challenged in the 71 00:04:05,493 --> 00:04:10,053 Speaker 3: courts because the courts could say you haven't fulfilled your 72 00:04:10,093 --> 00:04:12,813 Speaker 3: moral duty to your children. Now, of course you want 73 00:04:12,813 --> 00:04:15,453 Speaker 3: to get some legal advice about this and decide what 74 00:04:15,493 --> 00:04:18,533 Speaker 3: you want to do. If you are defining up your 75 00:04:18,573 --> 00:04:21,133 Speaker 3: assets among your kids, it doesn't have to be equal, 76 00:04:21,413 --> 00:04:24,453 Speaker 3: but each child has to be thought about and accounted 77 00:04:24,493 --> 00:04:27,653 Speaker 3: for in the will. Otherwise, in this example, the sisters 78 00:04:27,693 --> 00:04:30,733 Speaker 3: did take the brother to court and they overturned the will. 79 00:04:31,253 --> 00:04:33,893 Speaker 3: He still ended up getting just under half, so it 80 00:04:33,973 --> 00:04:37,893 Speaker 3: wasn't equal, but it's one way to ruin your relationship 81 00:04:37,933 --> 00:04:38,613 Speaker 3: with your siblings. 82 00:04:38,773 --> 00:04:41,733 Speaker 2: Yeah, yeah, to say the least. Oh, those are such 83 00:04:41,773 --> 00:04:45,093 Speaker 2: messy stories. When I said cautionary dales, know I'm not 84 00:04:45,133 --> 00:04:48,493 Speaker 2: suggesting that I'm in one of those kind of situations yet, 85 00:04:48,493 --> 00:04:50,893 Speaker 2: but I suppose no one thinks they're going to be 86 00:04:50,893 --> 00:04:52,933 Speaker 2: in those situations right then, and then you know, the 87 00:04:52,973 --> 00:04:56,213 Speaker 2: worst happens. My problem is that I haven't yet updated 88 00:04:56,253 --> 00:04:59,093 Speaker 2: my will since getting married and since having our baby, 89 00:04:59,133 --> 00:05:00,933 Speaker 2: So I need to kind of get onto that because 90 00:05:00,973 --> 00:05:02,693 Speaker 2: it's one of those things that a lot of people 91 00:05:02,733 --> 00:05:03,773 Speaker 2: just put on the back burner. 92 00:05:03,973 --> 00:05:08,133 Speaker 3: Right that is one hundred percent the So have a churtch, you, lawyer. 93 00:05:08,133 --> 00:05:11,813 Speaker 3: It's much cheaper to sort this out in advance than 94 00:05:11,933 --> 00:05:14,333 Speaker 3: leaving it to your friends and your family when you 95 00:05:14,453 --> 00:05:16,773 Speaker 3: die and leaving them to have legal battles and sort 96 00:05:16,813 --> 00:05:17,053 Speaker 3: it out. 97 00:05:17,093 --> 00:05:17,253 Speaker 1: Then. 98 00:05:17,493 --> 00:05:22,373 Speaker 2: Yeah. Yeah, no, very good advice. And yeah, like you say, 99 00:05:22,453 --> 00:05:25,933 Speaker 2: with complicated modern families, you know, I sadly this is 100 00:05:25,973 --> 00:05:27,933 Speaker 2: the sort of thing that many families are going through, 101 00:05:27,973 --> 00:05:31,173 Speaker 2: So I appreciate that. Eating congratulations on your marriage of course. 102 00:05:32,493 --> 00:05:32,813 Speaker 3: Very much. 103 00:05:33,213 --> 00:05:34,933 Speaker 2: I trust that you are much more up to date 104 00:05:34,933 --> 00:05:36,893 Speaker 2: with things than I am, and we will catch again 105 00:05:37,053 --> 00:05:38,973 Speaker 2: very soon. E McKnight from Opie's Partners. 106 00:05:39,613 --> 00:05:42,733 Speaker 1: For more from Saturday Morning with Jack Tame, listen live 107 00:05:42,813 --> 00:05:45,653 Speaker 1: to news talks that'd be from nine am Saturday, or 108 00:05:45,733 --> 00:05:47,613 Speaker 1: follow the podcast on iHeartRadio.