NZ Legal Thresholds

The $15,000 Rule.

In New Zealand, many small estates can be settled without the cost and delay of full probate. Understanding the $15,000 threshold can save your family thousands.

What is the $15k Rule?

Section 65 of the Administration Act 1969 allows banks, insurance companies, and other institutions to pay out assets up to **$15,000** directly to survivors without requiring a Grant of Probate.

"If the total value held at any one institution is beneath $15,000, you likely don't need probate for that specific asset."

This Includes:

Bank Accounts
Life Insurance Policies
KiwiSaver Balances
Shares & Bonds
Government Bonds
Superannuation

The 'Catch'

While $15k is the legal threshold, institutions are **not forced** to pay out without probate. They may still request it if they believe there is a dispute or the situation is complex.

Avoid High Legal Fees

If you're dealing with a small estate, don't let a lawyer talk you into full probate unless absolutely necessary.

Real Estate Exception

**Crucial:** The $15,000 rule does NOT apply to real estate. If the deceased owned land or a house (solely), you will **always** need probate to transfer the title.

Next Steps after Settlement

Once you've settled the small assets, you may need help with the physical components of the estate.

Small Estate FAQs

Is it $15,000 in total, or per bank?

Legally, it applies per institution. However, if the total estate is large, institutions will eventually notice and request probate for security.

How do I claim the money?

You'll need a certified copy of the Death Certificate, the Will (if any), and a signed 'Indemnity Form' from the institution protecting them from future claims.

What if there is no Will?

The $15,000 threshold still applies, but you'll be dealing with 'Letters of Administration' instead of Probate. The process is similar for small amounts.