Dealing with the deceased’s property: Wills, intestacy, and small estates
Small estates: No need for court approval
Court approval not necessary for amounts below specific limits
Administration Act 1969, ss 64–65, 82A Administration (Prescribed Amounts) Regulations 2009, regs 4, 4A
If the estate is a small one, it may not be necessary to apply to the courts for approval to deal with the estate (probate for a will, or letters of administration if there’s no will).
A range of institutions and individuals can transfer the following to the executor/administrator, family members, or other beneficiaries, without any need for probate or letters of administration:
- Money owing to the deceased, up to the value of $40,000, held by
- a superannuation fund,
- a building society, industrial and provident society, friendly society, or credit union,
- a bank,
- an employer of the deceased (provided that the deceased was employed by this employer within the six months before the date of death),
- a local authority,
- a trustee corporation,
- Kāinga Ora–Homes and Communities,
- the Accident Compensation Corporation,
- the Chief Executive of the Ministry of Social Development, or
- the Crown (i.e. the government);
- A life insurance pay-out, up to the value of $40,000;
- Government stock, up to the value of $15,000;
- Local authorities stock, up to the value of $15,000; and
- Shares in a company, up to the value of $15,000.
The executor/administrator or beneficiary will usually need to provide a copy of the death certificate in these cases. The person or organisation paying or transferring the money or other property must also be satisfied that probate or letters of administration haven’t been granted.
Even if court approval isn’t needed because it’s a small estate, the executor has to follow the directions in the will. If there’s no will, they are still obligated to follow the rules of who is entitled to what property (“the laws of intestacy”).
Tip: In practice, banks won’t know the total net worth of the estate, just the amount the deceased held with that individual bank. If there is less than $40,000 at a singular bank, you might be able to apply directly to that bank without having to get approval from the High Court.
