Mar 19 2025 5 mins
Property inheritance creates a surprising legal maze that many first-time home buyers don't see coming until it's too late. We dive into a listener's real dilemma when Jackie discovered her carefully laid plans to use KiwiSaver for her first home purchase might be derailed after unexpectedly inheriting property.
The moment your name appears on a property title—even through inheritance rather than purchase—your legal status shifts from first-time buyer to existing property owner. This seemingly small distinction carries significant consequences, potentially blocking access to KiwiSaver funds you've been counting on for your deposit. We've seen multiple cases where people discover this roadblock years after inheritance, creating devastating financial surprises at the worst possible moment.
We explore practical solutions, including immediately consulting a solicitor when inheritance occurs, investigating second-chance KiwiSaver withdrawal options, and ensuring property titles are strategically arranged. The episode also unveils the hidden but crucial role lawyers play throughout property transactions—from reviewing purchase agreements to managing your KiwiSaver withdrawal (which you'll never actually see in your personal account) to ensuring you're registered on the correct property title. As one cautionary tale reveals, some homeowners have discovered decades later they've been paying for the wrong property due to title registration errors!
Have questions about inheritance, KiwiSaver complications, or the role of solicitors in your property journey? Connect with us on Facebook, Instagram, YouTube or TikTok. Your questions inspire our content and help fellow Kiwis navigate these complex waters. Share this episode with anyone facing inheritance or planning their first home purchase—it might save them from unexpected complications.