Private Client
There are two types of grants that are obtained to administer an estate. A grant of probate is a process whereby the High Court recognises whether a will is valid. If someone dies without a will, an application is made for grant of letters of administration. These grants give the executor/administrators of the estate authority to deal with deceased’s property, and where required, to close bank accounts and transfer property into the name of the executor or administrator.
Currently an executor/administrator of an estate cannot deal with any asset which has a value exceeding $15,000 without a grant confirming authority to act from the Court. If the deceased had more than $15,0000 in any bank account or institution (including KiwiSaver) either a grant of probate or letters of administration would be required. This means, in reality, most people who have a KiwiSaver (even if they have few other assets) may be above the current threshold, which has not been amended since 2009. As a result, family members of a deceased person may spend a substantial portion of the estate on the various fees associated with applying for a grant.
From 24 September 2025, this amount is going up to $40,000, and is likely to have a significant impact on the administration of estates.
Many couples will own their assets jointly. As joint assets pass automatically to the survivor, the administration of the deceased person’s estate can occur without a grant. The deceased person may only have one or two bank accounts in their own name which will not pass automatically to the spouse. From 24 September 2025, if these accounts contain less than $40,000 there will be no need to apply for probate or letters of administration.
Regardless of whether your estate reaches the $40,000 threshold, it is important to have a will so that your assets can be distributed according to your wishes. If letters of administration are applied for, the estate is distributed pursuant to the schedule set out in the Administration Act and that may not reflect your wishes. Brookfields can assist with drafting your will, applying for a grant after the death of a loved one, and aim to use our expertise to tailor the appropriate documents to your circumstances so that your wishes are carried out.
