New probate threshold in New Zealand

On 24 September 2025, the Administration (Prescribed Amounts) Regulations 2009 were amended to allow the release funds of up to $40,000 directly to a deceased person’s family or other eligible persons, without requiring a court to order either:

• probate – this is an order validating a deceased person's Will and authorising their executors to administer the person’s estate and distribute their assets according to the terms of the Will, or
• letters of administration – these are a legal document giving a person the authority to administer the estate of a person who has died without a valid Will (i.e. intestate) and distribute their assets according to the laws of intestacy.

From 2009 until this law change, the ‘probate threshold’ had been just $15,000. The law change recognises that the $15,000 threshold had not kept up with inflation or (in particular) the average KiwiSaver or other retirement scheme balance.  It aims to make settling smaller estates faster and simpler, by helping families avoid legal costs and delays in accessing funds during a difficult time.

What this means

If a person dies leaving certain non-land assets (such as money in a bank account or a retirement scheme) valued at under $40,000 each, those assets can be released directly to their family without a formal grant of probate or letters of administration, saving families time and money.

Important reminders

Even with the higher threshold, ensuring you have a valid Will which clearly states your wishes remains important. More information on how to make a Will can be found on Sorted’s website.

If you die while a Fund member then your death benefit is generally payable to your estate (i.e. to your executors for distribution according to your Will or, if you die without a valid Will, to your estate administrators). Review the Death Benefit Fact Sheet here for more information.

The law change means that if the total amount payable from the Fund when you die does not exceed $40,000, then the trustee may pay a claimant such as your partner directly.