Can You Withdraw Money From a Dead Person's Account in NZ?

One of the most common and urgent questions that arises after someone passes away is whether family members can access the deceased's bank accounts. This practical concern often comes up when there are immediate expenses such as funeral costs to cover, or ongoing household bills to pay.

This guide explains the rules around accessing a deceased person's bank accounts in New Zealand, the proper legal processes to follow, and what exceptions might apply in certain situations.

The General Rule: Accounts Are Frozen

When a bank is notified of a customer's death, the standard procedure is to freeze their accounts. This means:

• Automatic payments and direct debits are typically stopped
• Credit cards and online banking access are deactivated
• Joint accounts may be treated differently (explained below)
• Term deposits may continue until maturity

This freezing of accounts serves to protect the deceased's estate until the proper legal authority to manage it has been established.

Who Has Legal Authority to Access Accounts?

When There Is a Will

If the deceased left a will, the executor named in the will has the authority to access accounts, but only after:

• The will has been validated through the probate process
• The High Court has issued a Grant of Probate
• The executor has presented this grant to the bank

When There Is No Will

If the deceased did not leave a will (died intestate), the process is similar but involves:

• An eligible person (usually spouse or close relative) applies to the High Court
• The Court issues Letters of Administration instead of Probate
• The administrator presents these Letters to the bank

Exceptions for Small Estates

Some banks in New Zealand have policies for releasing limited funds without full probate for small estates:

• Typically applies to accounts with balances under $15,000-$20,000
• The bank may require a death certificate, statutory declaration, and indemnity form
• These funds are often released to pay for funeral expenses or urgent bills
• Policies vary by bank, so it's important to check with the specific financial institution

Practical Steps After a Death

1. Contact all banks where the deceased had accounts
2. Provide them with a copy of the death certificate
3. Ask about their specific requirements for account access
4. Inquire about any small estate provisions if applicable
5. Apply for probate or letters of administration (or engage a professional to help)
6. Once legal authority is established, set up an estate account for managing funds

Legal Risks of Unauthorized Access

It's important to understand that accessing a deceased person's accounts without proper legal authority can have serious consequences:

• It may constitute fraud or theft under New Zealand law
• You could face personal liability to other beneficiaries
• Banks have security measures that can detect unauthorized access
• Legal disputes over estate access can be costly and stressful