Quick access to dead relatives' KiwiSaver pleases

Damian_Foster__Medium_.jpg
Damian_Foster__Medium_.jpg
Changes to the KiwiSaver law, allowing families of members who die to have quick access to funds in the dead member's account, have been welcomed within the savings industry.

Forsyth Barr savings specialist Damian Foster said the changes were aimed at speeding up the release of the funds if a member died without a will.

The law change, effective from July 1, 2007, lets up to $15,000 from a dead member's account be paid out directly, without their having to register probate if the member left a will, or letters of administration if the member died intestate.

"With KiwiSaver only going a short time, some people don't have a large balance after a year or so. The funds have been eaten up in legal fees after someone dies without a will.

"This is a considerable change that will assist with this particularly sensitive issue," he said.

The change also highlighted the Government's ability to be pro-active with making changes to ensure the KiwiSaver framework was effective for all those involved, Mr Foster said.

Mr Foster estimated that it could take about seven years for someone earning $52,000 a year and contributing 2% a year into KiwiSaver for the total to reach about $15,000.

That did not take into account of the performance of the fund.

 

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