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Guardianship isn't the same as inheritance

Naming someone guardian doesn't give them a share of your estate.

Many parents assume that naming someone as their children's guardian automatically means that person will also receive a share of the estate to raise them with. It doesn't — guardianship and inheritance are two separate decisions in your Will.

Without a clear Will

  • If you only name a guardian and don't separately name beneficiaries, your guardian gets the responsibility of raising your children but no legal claim on your estate.
  • Money for your children's care usually needs to be managed by a trustee (who may or may not be the same person as the guardian) under the terms of your Will.
  • Guardians sometimes discover, after the fact, that they're expected to cover the day-to-day costs of raising a child without ready access to the money you left — causing real financial strain.
  • Assuming 'guardian equals provided for' can leave both your children and your chosen guardian in an awkward, under-resourced position.

With a Will

  • You clearly separate the two roles: a testamentary guardian (who cares for your children) and beneficiaries/trustees (who manage the money you leave).
  • You can choose to make your guardian a beneficiary too, or keep the roles entirely separate — whichever you decide, it's a deliberate choice.
  • You can direct that funds be available to whoever is caring for your children — for housing, school costs, or day-to-day expenses — without those funds simply becoming the guardian's personal property.
  • Your children's inheritance is protected — held on trust and released to them at an age you choose, rather than handed to the guardian outright.

Practical guidance for NZ

  • Decide guardianship and inheritance separately, on their own merits — the best person to raise your kids isn't always the best person to manage money, and vice versa.
  • If you want your children's money to help support whoever is caring for them day-to-day, say so explicitly (for example, allowing the trustee to release funds for the children's upbringing and reasonable household costs).
  • Choose a trustee you trust with money — this can be the guardian, a different family member, or a professional trustee.
  • Talk to your chosen guardian about what practical and financial support they can expect — don't leave them to guess.

Worth getting advice on

If you want money released to support a guardian's household (not just the child directly), a lawyer can word this so it's enforceable and doesn't cause tax or trust complications.

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