Jim is age 56 and is about to marry for the second time. His first relationship ended 10 years ago and he has two daughters age 20 and 25. His fianc, Claire (aged 36) has a child of her own, a 10-year old daughter. Jim and Claire have been living together for five years.

Jim won $1 million through the bonus bond scheme and the money was paid into an ANZ savings account in his name. He paid maintenance for his children and once the girls turn age 18, he redirected the maintenance payments to help his first wife pay off the home mortgage. She now owns the house outright. Jim was renting but has now decided to buy a new home with his winnings that will be big enough for the three of them, plus allow room for his daughters should they need to return home for any reason. He has decided to keep his win a secret and surprise Claire with her new home as a wedding present. To do this, he needs to buy the home in his own name, otherwise Claire will find out about the surprise before the wedding. Jim has adopted Claires daughter. Jims only other asset is his KiwiSaver account valued at $238,000.

Jim has never made a will.

Explain the following issues to Jim with reference to how this might affect his circumstances:

(a) What is an estate plan?

(b) What property would (or would not) be included in an estate?

(c) What a will is, and what the requirements are for a will to be valid?

(d) If Jim dies without a valid will, what will happen to his assets?

(e) If Jim dies with a valid will in place, what can Jims children from his first marriage do if they believe that they have not been appropriately provided for by Jims will after his death?