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

When someone passes away without leaving a valid will in New Zealand, they are said to have died "intestate." In these cases, the law determines who inherits their estate through a clear order of priority known as the "next of kin" hierarchy.

Understanding who qualifies as next of kin in New Zealand is crucial for families dealing with intestacy, as it determines both who can apply to administer the estate and who will inherit from it.

What Does "Next of Kin" Mean in New Zealand?

In New Zealand law, "next of kin" refers to a person's closest living relatives as defined by the Administration Act 1969. This term is important for two separate but related purposes:

1. Estate administration: Determining who has the right to apply for Letters of Administration (the legal authority to manage the estate)
2. Estate distribution: Establishing who inherits the deceased's assets when there is no will

Who Can Apply to Administer the Estate?

When someone dies without a will, there's no named executor. The following people (in order of priority) can apply to the High Court for "Letters of Administration":

1. Spouse or civil union/de facto partner
2. Children (including legally adopted children)
3. Parents
4. Brothers and sisters (including half-siblings)
5. Grandparents
6. Uncles and aunts

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

• Apply jointly, or
• Consent to allow others to apply

Who Inherits the Estate? The Intestacy Distribution Hierarchy

The Administration Act 1969 establishes a clear hierarchy for distributing an intestate estate. Here's how it works:

1. If the Deceased Has a Spouse/Partner and Children

• The spouse or partner receives:
  • All personal chattels (household items, vehicles, personal belongings)
  • $155,000
  • One-third of the remaining estate
• The children share the remaining two-thirds equally

2. If the Deceased Has a Spouse/Partner but No Children

• The spouse or partner receives:
  • All personal chattels
  • $155,000
  • Two-thirds of the remaining estate
• If the deceased's parents are alive, they share the remaining one-third
• If no parents survive, the spouse/partner receives the entire estate

3. If the Deceased Has Children but No Spouse/Partner

• The children share the entire estate equally
• If a child has died before the deceased, that child's share passes to their children (the deceased's grandchildren)

4. If the Deceased Has No Spouse/Partner or Children

The entire estate passes to relatives in the following order:

1. Parents (equally if both alive)
2. Brothers and sisters (if no parents)
3. Grandparents (if no siblings)
4. Aunts and uncles (if no grandparents)
5. If none of these relatives exist, the estate passes to the Crown

Important Considerations About Next of Kin

Who Qualifies as a "Spouse/Partner"?

Under New Zealand law, a spouse/partner can be:

• A legal spouse (through marriage)
• A civil union partner
• A de facto partner (if the relationship lasted at least 3 years)

Half-Blood Relatives

Under New Zealand law, half-blood relatives (such as half-siblings who share only one parent) have the same rights as full-blood relatives when it comes to intestate succession.

Legally Adopted Children

Legally adopted children have the same rights as biological children for intestacy purposes. However, children who were not legally adopted by the deceased (e.g., stepchildren without formal adoption) have no automatic right to inherit under intestacy rules.

Challenges of the Intestacy System

The intestacy system can create several problems:

• It may not reflect what the deceased would have wanted
• Stepchildren and unofficially "adopted" children may receive nothing
• Long-term de facto relationships under 3 years aren't recognized
• Close friends and caregivers cannot inherit
• The process is typically longer and more expensive than with a will