When Is Probate Not Required in NZ? Exceptions and Alternatives

Understanding When You Can Skip Probate in New Zealand

When dealing with a loved one’s estate in New Zealand, probate isn’t always necessary. Knowing when probate is not required in NZ can save you time, money, and stress during an already difficult period.

This guide explains the situations where you may be able to bypass the probate process, helping you make informed decisions about managing a deceased person’s estate.

Common Situations When Probate Is Not Required in NZ

1. Small Estates

In New Zealand, probate is often not required for smaller estates. Specifically:

When the total estate value is relatively small (typically less than the statutory threshold: $15,000 until 23 September 2025, $40,000 from 24 September 2025 onwards, at any single institution)
When banks and financial institutions are willing to release funds without requiring probate
When the estate doesn’t include real property (land or houses)

Many financial institutions in New Zealand release funds up to the statutory threshold ($15,000 until 23 September 2025, $40,000 from 24 September 2025 onwards) without probate, though some institutions may apply their own internal policies.

2. Jointly Owned Assets

Assets that were jointly owned with the deceased often don’t require probate to transfer ownership:

Joint bank accounts automatically pass to the surviving account holder
Property owned as “joint tenants” transfers directly to the surviving owner
Jointly held investments typically transfer through a simple death notification process

This automatic transfer occurs through the legal principle of “survivorship,” where the deceased’s share directly passes to the surviving joint owner without needing to go through the estate.

3. Assets With Named Beneficiaries

Certain assets that have designated beneficiaries bypass the probate process:

Life insurance policies with named beneficiaries
KiwiSaver accounts with specified beneficiaries
Superannuation funds with binding death nominations

These assets transfer directly to the named beneficiaries through the provider’s own processes, independently of the will or probate.

4. Family Trusts

Assets properly held in family trusts aren’t considered part of the deceased’s personal estate:

Trust assets continue to be managed by the trustees
The trust deed governs what happens after the death of a settlor or trustee
No probate is required to deal with trust assets

This is one reason many New Zealanders use family trusts as part of their estate planning strategy.

Alternatives to Probate in New Zealand

Transmission Without Probate

For smaller estates, many institutions offer simplified processes:

Banks may release funds with a death certificate, will copy, and indemnity form
Share registries often have small estate procedures for transferring shares
Government agencies like IRD have their own processes for dealing with a deceased’s accounts

Statutory Declaration Process

Some organisations accept a statutory declaration from the executor or next of kin:

The declaration confirms the person’s right to deal with the assets
It typically includes indemnity to protect the organisation
It must be witnessed by an authorised person (lawyer, JP, etc.)

Letters of Administration (For No Will)

If there is no will, but the estate is too small to warrant formal Letters of Administration:

Some institutions will accept declarations from the person entitled under intestacy laws
This often requires legal advice to ensure compliance with the Administration Act 1969

The Probate Threshold: Understanding the Rules

The statutory threshold for probate in New Zealand has changed:

The threshold was $15,000 until 23 September 2025
From 24 September 2025 onwards, the threshold increased to $40,000
This applies to the total value of assets held at any single institution
Financial institutions typically follow this statutory threshold, though some may apply their own internal policies

Benefits of Avoiding Probate in NZ

When probate is not required in NZ, you can benefit from:

Faster access to assets - Avoiding the 4-6 week standard probate process
Cost savings - No court filing fees or reduced legal fees
Simplified administration - Less paperwork and formal requirements
Privacy - Avoiding the public record aspect of probate

When You Should Still Consider Probate

Even when probate might not be strictly required, sometimes it’s still advisable:

When there could be disagreements among beneficiaries
When the executor needs legal protection
When dealing with complex asset structures
When the estate includes overseas assets

How to Determine if Probate is Required for Your Situation

To assess whether probate is needed for your specific circumstances:

Make an inventory of all the deceased’s assets and their ownership structure
Contact financial institutions to understand their requirements
Check property titles to determine ownership structure
Consult with a lawyer specialising in estate administration

Remember that if probate is required, applications must be submitted to the Probate Registry at the Wellington High Court with the current filing fee of $269 (though fee waivers may be available for those who qualify).

Planning Ahead to Avoid Probate

If you’re planning your own estate, consider these strategies to minimise probate requirements:

Set up joint ownership for key assets
Establish a family trust for significant property
Ensure superannuation and insurance policies have nominated beneficiaries
Keep estate values at any single institution below threshold limits

Need Advice on Probate Requirements?

At Simply Probate, we can help you determine whether probate is required for your specific situation. Our experts can guide you through alternative options and ensure you’re taking the most efficient approach to administering your loved one’s estate.

This information is current as of May 2025. Laws and institutional policies regarding probate requirements may change, so always seek current professional advice for your specific situation.