Increase in Probate Threshold
On 31 July 2025, the government announced an increase in the probate threshold from $15,000 to $40,000. The threshold relates to the value of an individual asset.
Currently, if a person passes away leaving assets valued at over $15,000 in their sole name, a formal grant of administration (either probate or Letters of Administration) is typically required before those assets can be accessed or transferred. This $15,000 threshold has been in place since 2009 and has not kept up with increasing KiwiSaver balances, inflation or the realities of modern estate planning.
The threshold was established in 2009, prior to the introduction of KiwiSaver. This change has been long overdue. Under the existing framework, legal fees in an estate valued at $20,000 could see the family lose approximately 25% of the estate’s value - and even more in the case where a person died living no Will (intestacy).
The new threshold will come into effect on 24 September 2025. After this date, if a person dies with less than $40,000 in their sole name, their assets may be accessible or transferable without the need for probate or Letters of Administration.
Who can access the Funds in a bank or KiwiSaver?
Section 65 of the Administration Act 1969 (Act) provides that any of the following persons can apply to receive the payment:
- the widow, widower, surviving civil union partner, a surviving de facto partner of the deceased person or children of the deceased person:
- the persons beneficially entitled to the estate of the deceased person under the will or on the intestacy of that person:
- any person appearing to be entitled to obtain administration of the estate of the deceased person in New Zealand:
- any person related by blood or marriage or civil union to the deceased person who undertakes to maintain the children of that person who are minors or any of them:
- any person who has and is exercising the role of providing day-to-day care for any of the children of the deceased person who are minors:
What Does This Mean for You?
If you are an executor or managing an estate:
If you are managing an estate or providing estate planning advice, the higher threshold could offer a simpler, faster process when handling modest estates. In some cases, it may also reduce legal costs.
If you are considering whether to have a Will and Estate Planning:
Even with the increase in the probate threshold, it remains crucial to have a valid Will and an estate planning in place - especially if you have trusts, cross-border assets, or complex family dynamics.
Consider this:
You cannot control what the future holds. What if you are suddenly incapacitated and unable to execute a Will? Without proper estate planning, your loved ones could face complex and costly challenges in managing your estate.
Take the step now to ensure your wishes are clear and your family is protected.
