Law firms around the country have received the good news that the Government has finally agreed to raise the threshold that currently requires small estates to apply for a grant of probate to deal with the estate assets. This announcement comes after many practitioners have been asking for the threshold to be raised. The threshold was set at $15,000 in 2009, before the KiwiSaver scheme was implemented, and has not been amended since then. On the 31st of July 2025 it was announced that the threshold will be raised to $40,000 on the 24th of September 2025. Since 2009 the executors of New Zealand estates have been required to apply to the High Court of New Zealand for a formal grant of administration if the deceased held real estate (owned property) in their sole name or held any assets worth $15,000 or more with a single financial institution (examples of these assets include a bank account, shareholding, KiwiSaver or life insurance policy). The change will affect the prescribed amount referred to in section 65 of the Administration Act 1969. The threshold will remain the same for sections 64 and 64A of the Act. Estates with an asset held with any of the institutions listed in section 65 of the Administration Act 1969, where the balance is under $40,000, will no longer be required to obtain a grant of administration to deal with that asset (provided there are no other assets above the threshold). This includes the following institutions: NZ banks NZ local authorities, Regional Councils or Territorial authorities NZ Societies Superannuation funds (including KiwiSaver, National Provident Fund and Government Superannuation Fund) Employers ACC Kāinga-Ora Homes and Communities Section 65(2) of the Administration Act 1969 can be interpreted as saying that the new threshold will apply to estates even where the deceased died before the implementation date (24 September 2025). The persons entitled to present evidence of the death and claim the funds from these institutions include the widow/widower, surviving civil union partner or children of the deceased, the surviving de facto partner, the persons who would be entitled to receive the estate under the will or intestacy rules (where there is no will), any person appearing to be entitled to administer the estate in New Zealand, a person related to the deceased who undertakes to maintain the deceased’s minor children or any person who is exercising the role of providing day-to-day care for any minor children of the deceased. Raising the threshold will bring tremendous relief to many New Zealand families by removing legal costs, High Court filing fees, and delays associated with obtaining a grant of administration to administer relatively small estates. If you need help with an estate, talk to our team today!
