From 24 September 2025, the threshold for requiring probate or letters of administration in New Zealand will increase from $15,000 to $40,000. This change, introduced by the Administration (Prescribed Amounts) Amendment Regulations 2025, marks a significant shift in how modest estates are managed.
WHY THE CHANGE MATTERS
Currently, when a person passes away and the value of their estate exceeds $15,000, a grant of probate or letters of administration from the High Court is required for the assets to be released.
The assets that form part of the value of an estate include real estate, personal belongings, vehicles, bank balances, KiwiSaver funds and life insurance policies. Many estates that would fairly be described as modest only exceed the $15,000 limit because of the growth in retirement scheme balances, such as KiwiSaver, triggering a disproportionate legal hurdle.
By raising the limit to $40,000, estates that fall within the new threshold can be administered without the Courts’ involvement. This has several key benefits:
- Faster Access to Funds: A significant reduction in delays normally faced where a grant of probate or letters of administration are required, enabling quicker access to funds and assets for the beneficiaries of the estate.
- Lower Legal Costs: Avoiding court applications reduces legal fees. Some families may even be able to manage the administration of the estate themselves with minimal assistance from lawyers.
- Less Stress for Families: Simplifying the process relieves families of administrative burdens at an already difficult time.
DO YOU STILL NEED A WILL? ABSOLUTELY.
While this is a positive development, having a valid will remains essential. A will ensures your wishes are clearly recorded and provides certainty for your loved ones, especially in blended or complex family situations.
A will lets you:
- Decide how your assets will be divided
- Appoint someone you trust to administer your estate
- Nominate guardians for children or dependants
- Minimise uncertainty about your wishes
Without a will, your estate will be distributed under New Zealand’s intestacy laws, which may not reflect your personal wishes.
FINAL THOUGHTS
This is a practical and positive development in the estate administration space, however, it does not eliminate the need for robust succession planning. If you have not reviewed your will recently or need to update your succession arrangements, our experienced Trusts and Estates team would be pleased to assist you.
