They say that the only things that are inevitable are death and taxes. But for many years, almost as inevitable is that a death will mean an application for probate.
Probate is a formal application to the High Court to recognise a Will and confirm that a person’s assets (known as their estate) are to be divided in accordance with that Will. Probate is required for every person who dies with an asset of more than $15,000. This amount was last increased in 2009, and has not kept pace with inflation, or with other changes to New Zealand’s society.
Most notably, the threshold amount is lower than the average KiwiSaver balance, which currently stands at $31,823. This means that a large majority of estates will need to go through the probate application process, even if there are no other significant assets. As a result, far more estates need to go through probate than were originally intended.
The same threshold applies to estates without a will, and requires Letters of Administration to be obtained from the High Court in order to liquidate and uplift assets of more than $15,000.
The Ministry of Justice has announced that the threshold amount will increase, and that from 24 September 2025 probate will only be required for estates with an asset of more than $40,000.
The result of this change is that relatively small estates won’t need to incur the expense of a High Court application, allowing the deceased’s money to go to the intended recipient.
If you have any questions about applying for probate, or for information on creating or updating your Will, please contact a member of our private client team.
Disclaimer: The content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.