Probate threshold lifted: a win for families and estate efficiency in New Zealand

From 24 September 2025, the New Zealand Government will increase the threshold for probate from $15,000 to $40,000, the first change in over 15 years. While this may seem like a minor technical update, the practical effect on estate administration could be significant, particularly for families managing smaller estates.

What is probate?
Probate is the legal process of proving and registering a deceased person’s will in the High Court. Where someone dies with a valid will and holds assets in their own name (not jointly or in trust), probate is typically required before those assets can be released or transferred.

For example, banks, investment providers, or KiwiSaver schemes often won’t release funds without seeing a court-issued grant of probate – even if beneficiaries are clearly named in the will.

The previous threshold meant that even small estates with more than $15,000 in solely held assets required probate.

What is changing?
Effective 24 September 2025, the threshold will increase from $15,000 to $40,000. This means that if a deceased person’s solely held assets are valued under $40,000 (and they do not own any real property (i.e., land or a house)) probate will no longer be required.

This change brings the threshold in line with the realities of modern estate administration. The original $15,000 limit was set in 2009, well before the widespread accumulation of KiwiSaver balances or increased inflation.

Why does it matter?
For many families, this change will significantly ease the burden of administering a loved one’s estate:

• Faster access to funds. Probate can take six (6) to ten (10) weeks, or longer. Removing the requirement for small estates eliminates this wait time.
• Reduced legal costs. Probate involves legal advice and court filing fees, even for straightforward estates.
• Less stress during a difficult time. Streamlined estate administration allows families to focus on grieving and healing.

There is the added benefit of freeing up High Court capacity for more complex estate matters. Though rest assured that high-value or complex estates will still require High Court involvement, ensuring appropriate oversight remains in place.

It’s particularly beneficial where:

• A person dies with modest assets held in their own name (e.g., a bank account or KiwiSaver balance under $40,000)
• They do not own a home or other real estate
• The will is straightforward and uncontested

Though you still need a valid estate plan
While this change may simplify the process for some estates, it doesn’t remove the need for a will.

Without a valid will:

• Assets are distributed under the Administration Act 1969 (intestacy laws), which may not reflect the deceased’s wishes.
• The family must apply for letters of administration, which is often more costly and complex than probate.
• There’s no clear direction on key issues such as guardianship of minor children or distribution of personal items.

Even for small estates, a valid will ensures clarity and control.

What should you do now?
This law change is a good opportunity to revisit your estate planning. Here’s a quick checklist to get started:

✅ Do you have a valid will?
✅ Is your will up to date – especially after major life events (e.g., marriage, divorce, children, grandchildren)?
✅ Have you considered how your KiwiSaver, life insurance, and jointly held assets will be distributed?
✅ Do you understand what assets are held in your name versus a trust or jointly?
✅ Are your digital assets or personal items clearly accounted for?
✅ Have you discussed your intentions with family or your executor?

Whether your estate is valued under or over $40,000, proactive estate planning helps avoid confusion, conflict, and delays for your loved ones. The updated threshold will ease administrative hurdles for many, but it’s still no substitute for tailored legal advice.

If you’re unsure how this change affects your existing plan, or if you’ve never created a will, now is an excellent time to take action. Get in touch today.