Succession planning: Deciding where your money goes
12 Apr, 2026
Who do I leave my money to?
For some (not all), the question of leaving a monetary inheritance will crop up at some point. What do you do with your money once you die?
I tried to sugarcoat that sentence, but failed.
When it comes to leaving an inheritance, Jonny and I are pragmatic and have a very simple plan. Lock, stock, and barrel, it goes to our daughter, and she can deploy it in her life, however she sees fit. We have, and will continue to, educate her about money, and are as confident as we can be that she will make good choices.
In some ways, we have it easy. She is the next in line, so it’s logical that we would leave her our money. I don’t need to think too hard about it. Again, I come back to my view that she’s financially and education-wise on the right track to use it well in her own life.
I have seen people leave money to children with all sorts of covenants and strings attached, as they attempt to rule from beyond the grave, and I’m yet to see it play out as it was intended. So, our will operates on a high trust (that she won’t screw it up) model.
Still, a recent chat with Poto, a single friend with no dependants, reminded me that it’s not always that straightforward, and that some people are putting real thought into what they want their money to do after they’re gone.
If you’ve worked hard to build up a net worth of any value, the question that pops up sooner or later is: Who do I leave my money to when I’m gone?
This is often called succession planning, which really just means deciding what happens to your money and assets when you’re no longer here.
For some of us, it feels a bit morbid. For others, it’s overwhelming. And for many people, it gets pushed down the to-do list. Me? I like to face it head-on.
Here’s the annoying thing about deferring the “money stuff”: it still takes up space in your head. Getting it sorted can bring a huge sense of relief. And the good news? You can reshape your plans as your life evolves.
A conversation that got me thinking
Poto told me about her succession planning. She’s single, has no children, and over the last couple of years, she’s been chipping away at organising her finances. She is financially independent, has retired early, and now makes me envious with the epic trips she takes (and sends me photos of).
Like many of us, she wanted to make sure that when she dies one day (hopefully decades from now), things are simple, clear, and fair for the people left behind.
What really prompted her to act was realising that life never stands still.
Friends she once assumed would be in her will were no longer in her life. Some charities she’d included had evolved, merged, or no longer existed. She was in a different phase of life, with new priorities and a deeper sense of what really mattered.
At the same time, she was dealing with life. Her mum is getting older, and her dad has died. Supporting both of her parents, in life and death, and being the executor of her father’s will made her think practically about her own future.
Wanting simplicity, longevity, and meaning
She didn’t want a complicated estate that would be hard for someone else to manage. Via The Happy Saver, I’ve spoken to many people who have had to settle the estate of a loved one. In most instances, it takes a great deal of time (commonly 6-12 months) and effort to find and wind down someone else's estate. Often, working with a lawyer, they still have to track down everything and tidy it all up.
She chose a good friend to be her executor and gave them a clear, straightforward plan to follow. There will be no hunting for assets or forgotten bank accounts and superannuation schemes. It’s all collated, updated, and ready to go. What an absolute blessing for the person left to manage her estate.
But while I’m OK with handing over my money and being done, she also wanted hers to have longevity and meaning.
Rather than leaving one-off lump sums that would eventually be spent, she liked the idea that her wealth could continue to do good over time. With her understanding of investing and compounding, she knew a well-managed investment fund could provide ongoing support for New Zealand causes she cared deeply about. Her legacy could have a strong reach.
There was another layer, too. Poto wants to honour her parents. As the last person in her immediate family, and someone who will inherit from them, she liked the idea that the money and values passed down to her could continue to live on through the work funded by her estate. So, while still young and healthy (she is in her 50s), she began putting her plans into action.
Step one: direct gifts to people and places she loves
The first part of her plan was relatively simple. She decided on specific amounts of money to go directly to:
family members
her marae
These were written clearly into her will, with dollar amounts specified. This meant those closest to her would benefit directly, without confusion or delay.
The second part required a lot more research.
Exploring a wider legacy in New Zealand
She started by talking to friends in similar situations (single, no dependants, financially independent) and learning from their experiences.
Eventually, she narrowed her options to Community Foundations, an organisation operating across New Zealand. Community Foundations are designed to hold, manage and distribute funds for the long term. She explained to me that they’re legally structured, well-governed, and set up with contingencies so funds can continue operating for decades, even as circumstances change.
She reached out, spoke with their Chief Executive, and met to discuss how it all worked and whether it might be the right fit.
A transparency note: I haven’t researched Community Foundations in depth, nor have I compared them with other organisations that may provide similar services (please share in the comments below if you know of any). I know that Public Trust does something similar, offering a wide array of grants. I’m sharing this as one example of how my friend solved her own problem. As always, do your own research.
How it works
Through Community Foundations, you can:
Set up your own named fund, scholarship, or trust with specific causes or beneficiaries
Contribute to existing funds or trusts set up by others
Or do a mix of both
By adding money to an existing fund, you’re contributing to a larger investment pool, which, due to its size, can often distribute more money to its recipients each year.
Poto chose to pay an upfront $5,000 fee to set up her fund. Because Community Foundations are charitable, this counted as a donation and came with Donation Tax Credits. She also had the option to have the fee paid from her estate later, but she preferred to pay it upfront.
Why?
It supported the organisation now
She received the tax benefit
It allowed her to build a relationship with the foundation while she was alive
She attends AGMs and presentations and stays informed about how things are run, which gives her confidence that this is the right long-term home for her financial legacy.
And yes, I get that talk of funds, $5,000 setup fees, and money being managed decades after a person dies can sound expensive. Is this only for the wealthy?
I don’t think so. It could be relevant to a wide range of people, whether their net worth is small or large, because smaller legacies can be added to existing funds, increasing their size and the good they can do.
And, just in case you were wondering: New Zealand doesn’t have inheritance tax. We used to, but it was scrapped long ago.
Keeping it local
One thing she really liked was the local focus, given that she has spent her life working in and supporting local groups. If you wish, you can select a specific region of Aotearoa and support the funds and causes operating there.
Flexibility was key because nothing in life stays the same. If charities change or no longer exist, Community Foundations have structures in place to ensure funds are redirected appropriately, rather than becoming stuck or unusable.
Final step: updating her will
Once everything was set up, she went back to her lawyer and updated her will using the information provided by Community Foundations. Poto said her lawyer was already familiar with the organisation, which made the process smoother.
Now, when she dies:
Her executor pays out the specified amounts to whānau and marae
The remainder of her estate is liquidated and goes to Community Foundations
The foundation distributes funds in perpetuity according to the trusts and causes she has chosen
Simple. Clear. Manageable.
I admire her for wanting to create a legacy that could endure for decades. She is a caring and kind person who wants to continue doing good in the world and has found a way to do so.
Creating a lasting legacy took time and energy because she wanted it to be right. With it all set up, she feels a sense of accomplishment and relief for having done the mahi.
In the event of death…
For me, money is something we talk about whenever the need arises - and that extends to Jonny and I dying, and explaining to our daughter what would happen financially.
Nothing worries me more than Jonny and me popping our clogs, our daughter grieving, and then not knowing what to do next. I have seen firsthand that unravelling someone else’s financial life, when you can’t ask them any questions, can be traumatic and time-consuming. We don’t want that for her.
Our wishes have evolved with her age. Jonny and I have mirror wills (we use Public Trust because, literally, managing estates is their bread and butter), meaning that if I die, it all goes to Jonny, and vice versa. But if our luck runs out and we both die at once, our will used to state who would care for her and how her inheritance should be managed until she was 18.
Now that she’s 18+, she has full control and ownership, guided by (but not dictated to) trusted sources.
Her leaving home was a time for a serious money conversation, where we explicitly explained what she needs to know and do if we both die. Much like Poto, we all feel better for having created a workable plan and having the conversation.
As with every other aspect of money, I don’t feel the need for secrecy, and I don’t think our last will and testament is a time for surprises - I’d rather explain our reasoning in person.
We let her know where to find up-to-date, relevant information in a document I created: In the event of death…
It opens with:
Sounds a bit grim, but fear not - this is just a folder full of information to help you navigate the paperwork trail and our digital lives… just in case we don’t achieve immortality…
It contains the where, what, and why of our financial lives - and I keep it updated.
Why this matters
If Financial Independence is your thing, don’t let it all fall to pieces at the end.
I’ve seen the emotional cost, time, and expense of poor planning borne by those left to pick up the pieces. And I’ve seen the relief when executors are handed a clear plan and know exactly what to do.
Those left to manage your estate want to do right by you, but you need to give them a roadmap to follow.
Whatever your net worth - a KiwiSaver balance, a house, savings, possessions - someone will need to sort it out. They will thank you for leaving clear instructions.
If you died tomorrow, would someone know what to do? A current will and a simple “in the event of death” folder can save your family weeks of stress and allow them to focus on what really matters.
Questions for you
Dying, legacy planning, and inheritance - all topics that can feel a bit sad, awkward, and downright depressing. I’ve got stuff to do, I don’t want to die! It’s not pleasant to think about, I get it.
But I truly believe, because I’ve seen it firsthand, that getting your life in order before you die brings a great sense of calm - and does the same for those who will handle things after you’re gone.
So, do it for you, and do it for them.
Do you have a will? If not, get one.
When was it last updated? Review it every 3-5 years or after a major life change.
Who is your executor? Have you told them? Please do.
Have you discussed an Enduring Power of Attorney?
Are your beneficiaries still appropriate?
Have you created a simple file or folder for your family to follow?
Sorting this stuff out isn’t just about tidying up loose ends; it’s about deciding what your money can do after you’re gone. For some, that’s making life easier for whānau by simply giving them all you have and letting them decide what to do. For others, like Poto, it’s creating something that keeps giving for generations. Either way, a clear plan is a powerful thing to leave behind.
