There have been recent updates to the Administration Act 1969 which impacts probate applications.
Probate is the formal process where an application is made by an executor appointed by the will to have the will verified by the Court. Probate means “to prove”. The court will validate that the will is the last of the deceased, and that who they have appointed as their executor/s are authorised to administer the estate.
Probate is required if the financial assets of an estate exceed the prescribed amount.
The prescribed amount has been changed as of 24 September 2025. The previous prescribed amount was $15,000.00. This prescribed amount had not been changed since 2009.
Probate is now required where the financial assets of an estate exceed $40,000.00.
The rationale behind the increase was to align the prescribed amount with the average amount held in KiwiSaver by New Zealanders.
It is important to note that there are certain types of financial assets that can be dealt with without having to formally apply for probate. Any sum of money under $40,000.00 held by the following institutions is payable without requiring administration:
- the trustees of a superannuation fund
- a society
- a bank
- an employer
- a local authority
- a trustee corporation
- Kainga Ora
- ACC
- Ministry of Social Development
- the Crown
The prescribed amount does not apply to ALL financial assets. For instance, the new prescribed amount does not apply to shares and debentures. The prescribed amount for these financial assets remains at $15,000.00.
Further, it does not apply to cryptocurrency, as exchanges and blockchain platforms institutions did not exist when the Administration Act 1969 was first enacted.
