A significant change in New Zealand’s estate administration law is coming, which will ease the burden on many grieving families. Currently, the value of assets that requires a probate application through the High Court is $15,000.  From 24 September 2025, the threshold will rise to $40,000.

This long-awaited change means that when someone dies with less than $40,000 in sole-owned assets (and no real estate), their loved ones may no longer need to apply for probate or letters of administration to access those funds. The change applies to assets like bank accounts, KiwiSaver balances, and insurance policies, which previously triggered court involvement, even in small estates.

The previous threshold of $15,000 was set in 2009 – before KiwiSaver balances became a common part of estates. As a result, many families have found themselves navigating costly and time-consuming legal processes for relatively small amounts.  The new $40,000 limit better reflects today’s financial realities and aims to reduce legal costs for families and speed up access to funds.  It also frees up High Court resources for more complex matters.

Those people who own a property jointly with their spouse will not necessarily be over the threshold. In such instances, the surviving owner automatically assumes full ownership under the principle of survivorship, and the house does not form part of the estate. It is only assets held in a person’s sole name that form part of their estate.

While the threshold has increased, the rules around who can receive funds remain unchanged. Financial institutions must still be satisfied that:

• The person has died
• No probate or letters of administration have been granted
• The person receiving the funds is legally entitled to them

Importantly, the threshold for government stock and company shares remains at $15,000, and estates involving real estate still require court approval regardless of value.

But this change does not eliminate the need for proper estate planning, and it is always recommended that people have a Will. A valid Will ensures your wishes are followed and makes the process easier and faster for your loved ones. Without one, your estate is likely to be subject to intestacy laws, which can be more complex, more expensive and the law decides who inherits your property.

The increase in the probate threshold is a practical step forward and is more compassionate to grieving families.  Raising the threshold will remove legal hurdles for many families dealing with the loss of a loved one.  But is it still so important to have a valid Will that sets out your wishes.  If you need a new Will, or would just like some more information, get in touch with us and we would be happy to help you.