Do You Have KiwiSaver? Then You NEED A Will

26 April, 2022 | Kimberley Brown

Updated 28 October 2025

KiwiSaver has changed the financial landscape for many Kiwis – and one of the big changes has been the consequences of New Zealanders having a significant asset (their KiwiSaver account) but no will.

Before KiwiSaver

Before KiwiSaver, it often wasn’t a significant issue if a person who didn’t own a home died without a will, as they did not have significant assets – and therefore in our experience, it has not been necessary to apply for a grant of administration (“Probate” or “Letters of Administration”) for many young people in their twenties or early thirties.

This is because many young people have not had a sufficient amount of assets to require a formal grant of administration.

What is formal administration?

When someone dies, a formal grant of administration is needed if they have any asset worth more than $40,000 in their own name. This could include a bank account, investment fund, KiwiSaver, life insurance policy, or property.

The threshold for requiring formal administration increased from $15,000 to $40,000 on 24 September 2025. However, this increase does not apply to shares or debentures – for those, the original $15,000 limit still applies.

Jointly Held Assets

Any asset held jointly with another person (ie a property, bank accounts, life insurance policies or shares) does not form part of the person’s estate as it transfers to the joint owner on the person’s death.

KiwiSavers with more than $40,000

KiwiSaver accounts are always held in a person’s individual name, meaning that if you have $40,000.00 or more in your KiwiSaver fund it will be necessary to apply for Probate (if you have a will) or Letters of Administration (if you don’t have a will) in order to access the funds in the KiwiSaver investment.

How a will can help

If you have a will, you yourself will have appointed an executor that you want to be in charge of your estate. The executor(s) will apply for a grant of Probate and once it has been granted they will be able to apply to the provider to have the KiwiSaver funds released.

The executor(s) will then distribute the funds in the estate to the people you have chosen as the beneficiaries of your estate. This is in many cases a fairly straightforward process.

What happens if you don’t have a will?

If you do not have a will, the Administration Act 1969 sets out the priority of who can apply to be the administrator who will be in charge of your estate (you do not get to choose). The administrator(s) will apply for a grant of Letters of Administration on Intestacy, and once it has been granted they will be able to apply to the provider to have the KiwiSaver funds released.

The administrator(s) will then distribute the funds in the estate in accordance with the rules as set out in the Administration Act, and you will not have any choice as to who are to be the beneficiaries of your estate.

In some cases the persons who will benefit under your estate under the Administration Act are the same people who you may have appointed beneficiaries under your will, but in many cases they may not be the people you want to inherit your estate.

A lot more time, cost and stress for those left behind

Applying for Letters of Administration is also a much more complicated, time consuming and expensive process than applying for Probate.

To set up an appointment to become a client and discuss your options complete the form below and we will get back to you promptly.