McLEAN AND CO. Chartered Accountants

Accounting                               Taxation                                   Business Advice and Development Assistance                                        

 P.O. Box 10 , Clive         133 Main Rd, Clive           Tel. (06) 8700952          Fax. (06) 8700955 

Email murray@mcleanandco.co.nz                                  Website www.mcleanandco.co.nz

 
EMAIL NEWSLETTER  SEPTEMBER/ OCTOBER 2012
 

Welcome again to the McLean and Co. Newsletter in which we discuss current taxation and business matters. We trust you find it informative.  

 

NEW CLIENTS

We are happy to accept new clients.  We would be happy to assist colleagues and acquaintances as new clients.

 

INDEX

  1. Mileage Rate of Vehicles Increased

  2. Upcoming Changes to Student Loans

  3. Are you Eligible to Withdraw your KiwiSaver Savings from 1 July 2012?

  4. Intestacy- What Happens when there isnt a Will?

 

MILEAGE RATE OF MOTOR VEHICLES INCREASED

The motor vehicle mileage rate has been reviewed to reflect the average cost of running a motor vehicle, including the average fuel prices. The mileage rate for the 2012 income year has increased to 77 cents per kilometre for both petrol and diesel fuel vehicles.


The mileage rate is set retrospectively for persons required to file a return for business income, so that the rate reflects the average motor vehicle operating costs for an income year. Those persons who meet the criteria have a choice of using the Commissioner’s mileage rate or actual costs. Taxpayers who choose to use actual costs must keep records to support any expenditure claimed.

 

UPCOMING CHANGES TO STUDENT LOANS

Two major changes to the student loans scheme will take place next year:

 

ARE YOU ELIGIBLE TO WITHDRAW YOUR KIWISAVER SAVINGS FROM 1 JULY 2012?

KiwiSaver reached its five-year anniversary on 1 July 2012 and you may now be eligible to withdraw your savings.

 

You may withdraw from KiwiSaver if you are 65 years or older and have been in KiwiSaver for at least 5 years.

 

For example, if you joined KiwiSaver aged 63 you are not eligible to withdraw until you have been in it for five years, that is, when you turn 68.

 

 

INTESTACY- WHAT HAPPENS WHERE THERE ISN'T A WILL

What is Intestacy?

This is where a person dies without a will. The term also covers where a person makes a will that’s invalid.

If a person dies intestate, their estate is distributed to relatives according to special rules in the Administration Act 1969. In some cases there may be a partial intestacy – this is where a will doesn’t dispose of all the will-maker’s property or assets.

Who sorts things out when someone dies Intestate?

If a person dies without a will, the High Court appoints an Administrator to manage the deceased person’s estate. Usually a family member applies to be appointed the Administrator. The formal name for the Court order appointing the Administrator is “letters of administration”.

The Administrator performs the same duties as an executor. If the estate is small it may not be necessary for a person to be appointed administrator.

What happens to a person’s property if they die Intestate?

If someone dies without a will, their property is distributed according to a set of rules in the Administration Act 1969 that set out an order of priority in which relatives receive the deceased person’s property. Who gets what depends on which family members exist.

The basic order of priority is:

The rules of intestacy are in section 77 of the Administration Act 1969, which you can read at http://www.legislation.govt.nz

Examples of how property is distributed under the laws of intestacy

What if there are no close relatives?

If a person dies without any of the close relatives listed above, their property may pass to the Government.

Can a person challenge the distribution of an intestate estate?

Yes. People have the same rights to challenge the distribution of the property of someone who died without a will as they have to challenge distribution under a will.

Small estates: no Administrator necessary

If the estate is a small one, the assets may be able to be gathered in and distributed without the courts appointing an Administrator. Banks, company directors and so on can transfer or pay the following to the appropriate family members without an Administrator having to be appointed:

 

McLEAN AND CO KNOWLEDGE CENTRE AND ARTICLES ABOUT TAXATION AND BUSINESS IN GENERAL PRESS HERE FOR BUSINESS STARTUP KNOWLEDGE CENTRE PRESS HERE
FOR INFORMATION ABOUT COMPANY INCORPORATION PRESS HERE FOR PREVIOUS MONTH EMAIL NEWSLETTERS PRESS HERE

FOR PROPERTY INVESTMENT AND TAX INFORMATION PRESS HERE

FOR FRANCHISE INVESTMENT AND TAX INFORMATION PRESS HERE


The information provided in this email newsletter is for informational purposes only.   McLean and Co. accept no responsibility for the opinions and information expressed in the information provided and it is provided "as is" without warranty of any kind.    The user assumes the entire risk as to the accuracy and use of this document.   Readers are asked to seek professional advice pertaining to their own circumstances.    The McLean and Co. email newsletter may be copied and distributed subject to the following conditions:
  • All text must be copied without modification and all pages must be included.
  • This document must not be distributed for profit.    

 

If we can assist further, please email McLean and Co as follows:

 CONTACT McLEAN AND CO. BY EMAIL BY CLICKING ON THIS LINK

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