New Increase in Probate Threshold
Until recently, if your spouse passed away with a $17,000 KiwiSaver or bank balance, an application for Probate or Letters of Administration on intestacy was needed to withdraw the funds. This safeguard ensured that funds were only released to the correct person entitled to administer the estate.
On 25 September 2025, the threshold to release funds without a formal High Court application was increased from $15,000 to $40,000.
This change aims to make it easier and faster for families to access smaller estates, reducing stress and legal fees. The 'Select Institutions' able to release up to $40,000 each without a court order, are banks, Kāinga Ora, local authorities, building and friendly societies, and trustees of a superannuation fund (for example KiwiSaver providers). Greater responsibility is now placed on those institutions releasing funds to ensure they are paid to the appropriate person, so they will be working to create appropriate internal policies to ensure the applicant is the correct person.
The increased threshold does not apply to shares, company bonds (shareholder advances) or loans, which remain subject to the older $15,000 cap. Real property (land or houses) will still require a grant of Probate/ Letters of Administration and formal legal assistance to transfer ownership. By virtue of joint ownership, transmissions by survivorship will still be available with minimal legal assistance. Digital assets such as cryptocurrencies are not included in the new regulations and neither is jewellery, art, vehicles and other chattels which will still require an application to the Court (unless jointly owned).
If multiple accounts at Select Institutions are held with the same institution and the total value exceeds $40,000, a formal application for Probate or Letters of Administration will still be required.
The new $40,000 threshold applies from the date of application, not the date of death, so may apply to an estate which has not yet been administered, but has existed for some time.
While a valid Will remains essential to determine who is entitled to inherit, this reform will simplify the process for modest estates. For many families, the increased limit will make the administration of smaller estates faster and more cost-effective.
We are here to assist with all aspects of estate and succession planning, including proactive or retrospective guidance how the new rules may apply to your or your family’s situation.
Eden Barley, Senior Solicitor
E: eden.barley@swlegal.co.nz
STEINDLE WILLIAMS LEGAL, Level 2, Suite 2.1,
18 Sale Street, T: 09 361 5563, www.swlegal.co.nz
