Probate threshold increased to $40,000 – what this means for Kiwi families

From 24 September 2025, the New Zealand Government increased the probate threshold from $15,000 to $40,000 — a long-awaited change that simplifies the estate process for thousands of families.

This adjustment, though seemingly small, removes the need for costly High Court applications for many modest estates, especially KiwiSaver accounts sitting between $20,000 and $40,000.

Why this change matters

The previous $15,000 limit was set decades ago when savings balances were far smaller. With KiwiSaver now a cornerstone of retirement planning, many New Zealanders had moderate accounts that still triggered the expensive probate process.

Under the old rules, families often had to spend $2,000–$3,000 on legal fees to release funds that were barely worth more than that. The new $40,000 threshold reduces this red tape and helps ensure small estates aren’t swallowed up by administration costs.

What probate actually is

Probate is the formal process where the High Court confirms that a deceased person’s will is valid and appoints the executor to manage their estate.

It gives banks, KiwiSaver providers and insurers legal proof that they’re releasing funds to the right person.

Until now, almost any estate exceeding $15,000 required probate, even if it was just a modest KiwiSaver balance or a small bank account.



What has changed

From September 2025, probate is no longer required if the deceased:

• Leaves less than $40,000 in total assets in their own name, and
• Does not own land or property in their own name.

This means:

• Banks and KiwiSaver providers can release funds under $40,000 without a court order.
• Insurers can settle small claims more easily.
• Vehicles, minor investments and compensation payments can be transferred without going through the High Court.

Families will still need to provide a death certificate, identification, and proof of relationship (for example, as executor, spouse or next of kin), but they’ll avoid lengthy court delays.

Where probate is still required

Probate remains necessary when:

• The estate includes land, a house or investment property.
• The total value of assets exceeds $40,000.
• There are shares, bonds or significant investments.
• There are disputes between beneficiaries or questions about the will’s validity.

Jointly owned assets aren’t affected — they pass automatically to the surviving owner.



Is the $40,000 limit per account or in total?

Technically, the $40,000 applies to the estate as a whole, not per account.

If a person leaves $20,000 in one bank, $15,000 in another, and $25,000 in KiwiSaver, their total estate is $60,000 — so probate is still required.

However, in practice, many banks or fund managers only consider what they personally hold.

That means one institution might release $30,000 without probate, unaware of the other balances elsewhere.

For consistency and risk management, the safest approach is to treat $40,000 as the total cap across all assets.

How to access funds without probate

If the estate qualifies under the new threshold, families can usually access funds by:

1. Contacting each provider (bank, insurer, KiwiSaver fund).
2. Completing a small-estate claim form.
3. Supplying a death certificate and photo ID.
4. Providing proof of relationship — such as a marriage certificate or a will naming the executor.
5. Completing a statutory declaration confirming there’s no land and total assets are under $40,000.

Each organisation has its own process, but most can release funds within a few weeks once paperwork is received.

How this affects KiwiSaver balances

KiwiSaver is one of the biggest beneficiaries of this law change.

Under the old $15,000 limit, many members’ balances exceeded the threshold by a small amount, forcing families to go to court.

Now, most KiwiSaver accounts can be released directly by the provider.

The only exception is when the account exceeds $40,000 or when the provider’s internal policies still require formal proof of authority — in which case letters of administration or probate may still be requested.

Practical examples

• Example 1: Sarah passes away with $35,000 in KiwiSaver and $3,000 in a bank account. No property. → No probate required.
• Example 2: John leaves $20,000 in one bank and $25,000 in another. → Probate recommended, as combined assets exceed $40,000.
• Example 3: Margaret owns her home jointly with her spouse and $25,000 in KiwiSaver. → No probate required, because the house transfers automatically to her spouse.

Why legal advice still matters

Even with a higher threshold, small estates can still involve legal risk.

Banks, insurers and KiwiSaver providers may interpret the rule differently, or ask for extra proof to protect themselves from future claims.

Legal advice ensures that:

• You provide the correct declarations and avoid accidental misrepresentation.
• The executor or next of kin distributes funds lawfully.
• Any hidden assets (like unpaid wages, dividends or tax refunds) are handled properly.
• The estate remains compliant if later discoveries push the total above $40,000.

A lawyer can also help families decide whether probate or letters of administration are still the safer option to prevent later challenges.