Raising the Probate Threshold and Implications for Estate Planning

5 September, 2025 | Carolyn Ranson

Families who have lost a loved one will soon find it easier and cheaper to manage their estate, thanks to a change in the law.

On 31 July 2025, Justice Minister Paul Goldsmith announced that the amount of money that can be released from a person’s estate without needing High Court approval will increase from $15,000 to $40,000. This change will take effect on 24 September 2025.

What Does This Mean?

Previously, even small estates had to go through the High Court process if the value was more than $15,000—often due to KiwiSaver balances. This could result in delays and legal costs that reduced the value of the estate.

With the new $40,000 threshold, banks, insurers, and KiwiSaver providers can release funds directly to family members without requiring court documents—saving time, stress, and money.

This will also reduce pressure on our High Court so this change will have a positive ‘knock on’ effect across the board.

Frequently Asked Questions (FAQ)

What is probate?
Probate is the legal process of proving a will in the High Court and getting a court order granting permission to distribute a person’s assets after they die.

Who can receive money without probate?
Executors, spouses, children, other relatives, or someone named in the will may be able to receive funds, depending on the situation.

Do I still need a will?
Yes! A will is essential to ensure your wishes are followed and to make things easier for your loved ones.

What if the estate is over $40,000?
Probate or letters of administration (if there is no will) will still be required for larger estates.

How long does probate take?
Once filed, most probate applications are granted by the High Court within 15 working days.

Tips for Estate Planning After the Threshold Change

• Make a Will: Decide who inherits your assets and who will manage your estate.
• Keep Your Will Updated: Review it after major life changes.
• Talk to Your Family: Share your wishes to avoid confusion.
• Consider Your KiwiSaver: Check provider rules and update beneficiary details.
• Name Beneficiaries Where You Can: For insurance and superannuation.
• Get Advice: Especially for complex estates or business interests.

Contact Us!

We are experts in probate, estate matters, asset protection, and estate planning, including Will preparation. To obtain assistance complete the form below or email suzanne.sumner@smithpartners.co.nz and we will respond to you promptly with details on how you can become a client.

Note: This article is for informational purposes only and does not constitute legal advice. For personalised guidance, please consult with our legal professionals.