Simply Probate

Next of Kin - Who Inherits When There's No Will in NZ

Published: 28 September 2023 • Updated: 28 September 2023

When someone passes away without leaving a valid will in New Zealand, they are said to have died “intestate.” In these situations, the Administration Act 1969 determines who has the right to apply for Letters of Administration and how the deceased’s estate will be distributed.

The Intestacy Hierarchy in New Zealand

New Zealand law establishes a clear hierarchy of who is entitled to inherit when someone dies without a will. This hierarchy determines both who can apply to administer the estate and how assets are distributed.

1. Spouse or Partner

The surviving spouse, civil union partner, or de facto partner (of 3+ years) is first in line. However, they may not receive the entire estate if there are children or parents also surviving.

2. Children

If there are children but no spouse/partner, the children inherit the entire estate in equal shares. If a child has died before the deceased but had children of their own, those grandchildren inherit their parent’s share.

3. Parents

If there is no spouse/partner or descendants, the deceased’s parents inherit the estate equally.

4. Siblings

If there are no parents, spouse/partner, or descendants, siblings inherit equally. If a sibling has died before the deceased but had children, those nieces/nephews inherit their parent’s share.

5. Grandparents

If none of the above exist, the estate is divided equally between maternal and paternal grandparents, or if only grandparents from one side are living, they receive the entire estate.

6. Aunts and Uncles

If no grandparents survive, aunts and uncles inherit. As with siblings, if an aunt or uncle has died before the deceased but had children, those cousins inherit their parent’s share.

7. The Crown

If no relatives exist within these categories, the estate passes to the Crown.

Distribution Rules - Who Gets What?

The Administration Act 1969 also specifies how assets are distributed when multiple categories of relatives survive. These rules can be complex, but here are the basic guidelines:

If a Spouse/Partner and Children Survive

  • The spouse/partner receives all personal chattels (household items, vehicles, etc.)
  • The spouse/partner receives a prescribed amount (currently $155,000) plus interest
  • The remaining estate is divided with 1/3 going to the spouse/partner and 2/3 divided equally among the children

If a Spouse/Partner and Parents Survive (No Children)

  • The spouse/partner receives all personal chattels
  • The spouse/partner receives a prescribed amount (currently $155,000) plus interest
  • The remaining estate is divided with 2/3 going to the spouse/partner and 1/3 divided equally between the parents

If Only a Spouse/Partner Survives (No Children or Parents)

  • The spouse/partner inherits the entire estate

If Only Children Survive (No Spouse/Partner)

  • The estate is divided equally among the children

De Facto Relationships and Intestacy

For de facto partners to have intestacy rights, the relationship must have:

  • Been continuous for at least 3 years at the time of death
  • Met the legal definition of a de facto relationship under the Property (Relationships) Act 1976

If a de facto relationship was shorter than 3 years, the partner generally has no automatic inheritance rights under intestacy rules, though they may be able to make a claim under other legislation.

Multiple Relationships

New Zealand law recognizes that a person might have more than one qualifying relationship at the time of death—for example, a person who has separated but not divorced from their spouse and is now in a new de facto relationship.

In these complex cases, the court may need to determine how to divide the prescribed amount and personal chattels between the parties. The remaining estate would still be divided according to the standard intestacy formula.

Cultural Considerations

New Zealand recognizes certain cultural differences in how property might be treated. For Māori individuals who have interests in Māori land, special rules may apply under Te Ture Whenua Maori Act 1993.

Letters of Administration - Who Can Apply?

The same hierarchy that determines inheritance also determines who has the right to apply for Letters of Administration (the court-issued document authorizing someone to manage and distribute the estate).

Priority is given in the following order:

  1. Spouse/partner
  2. Children
  3. Parents
  4. Siblings
  5. More distant relatives

If there are multiple people in the same category (e.g., several children), they can either:

  • Apply jointly
  • One can apply with the written consent of the others
  • One can apply after the others have formally renounced their right to apply

Conclusion

Dying without a will in New Zealand means your assets will be distributed according to a rigid statutory formula that may not reflect your wishes. The process of obtaining Letters of Administration can also be more complex and time-consuming than the probate process for a valid will.

Creating a valid will is the best way to ensure your assets are distributed according to your wishes and to simplify the process for your loved ones after you’re gone. However, if you’re dealing with an intestate estate, understanding these rules can help you navigate the process more effectively.

If you’re unsure about your rights or responsibilities in an intestate situation, seeking professional legal advice is highly recommended.