Estate Administration and Probate
Estate Administration can take time, and we encourage families to focus on supporting one another while we manage the legal aspects of the process. There is usually no need to rush, and we will guide you through each stage to ensure the estate is administered correctly and efficiently.
Determining Whether Probate Is Required
One of the first steps is to establish the value and nature of the estate assets. To assist with this, we ask that you provide a list of any assets and liabilities you are aware of. This may include:
- Bank accounts
- Investments and shares
- KiwiSaver or superannuation entitlements
- Real estate
- Vehicles
- Outstanding debts or liabilities
Any documents belonging to the deceased, such as bank statements, dividend statements, insurance records, and financial statements, can help us identify estate assets and determine the appropriate process.
Generally, if the deceased’s assets exceed $40,000, an application for Probate (where there is a valid will) or Letters of Administration (where there is no valid will) will be required before the estate can be administered. Where assets are below this threshold, institutions may accept alternative documentation, including an original death certificate.
The $40,000 Threshold
The law is currently unclear as to whether the $40,000 threshold applies to each individual asset or institution, or whether it applies to the total value of all assets held across multiple institutions.
Because of this uncertainty, it is often prudent to obtain Probate or Letters of Administration where the total value of the deceased’s assets exceeds $40,000, regardless of how those assets are distributed. Taking this approach helps avoid unnecessary delays, disputes, or situations where an institution refuses to release funds without a grant from the High Court.
Applying for Probate or Letters of Administration
We prepare all documentation required for the High Court application, including the necessary affidavit that must be completed by the executor or administrator.
The affidavit confirms to the Court that the executor or administrator is entitled to act and is willing to fulfil the responsibilities associated with administering the estate. The document must be signed before a solicitor.
Once the application documents have been completed, we will arrange for signing and file the application with the Wellington High Court. Processing times vary, but applications can take up to six weeks to be issued by the Court.
While Waiting for Approval of Court Applications
While the Court application is being processed, we will begin gathering information from the estate’s asset holders so that administration of the estate can proceed as efficiently as possible once the grant is received.
If there are funds available in the deceased’s bank account, we will also ask the bank to release sufficient funds to pay the funeral expenses before the grant is issued, as banks will often consider such requests.
To enable us to make this request, please arrange for the funeral director to send the funeral invoice and a copy of the death certificate directly to us.
Statutory Timeframes for Estate Claims
New Zealand law allows certain eligible individuals to make claims against an estate.
In most cases, a claim must be filed within 12 months of the grant of Probate or Letters of Administration. Different time limits may apply in some circumstances, including claims involving minor children or intellectually disabled children. The Court also has discretion to extend these timeframes where appropriate.
When Can an Estate Be Distributed?
Executors and administrators should take care before distributing estate assets.
Generally, an executor or administrator can distribute an estate six months after the grant of Probate or Letters of Administration without incurring personal liability for distributing the estate early, provided they have not received notice that a claim is intended to be made.
Where notice of an intended claim has been received, the claimant must generally commence proceedings within three months of giving that notice. Until any claim is resolved, distribution of the estate should be approached with caution.
For this reason, we usually recommend waiting at least six months after the grant of Probate or Letters of Administration before making final distributions to beneficiaries. If an earlier distribution is appropriate, we can advise on options to protect the executor or administrator from potential future claims.
How We Can Help
Our team can assist with every stage of estate administration, including:
- Identifying estate assets and liabilities
- Preparing Probate and Letters of Administration applications
- Liaising with banks, investment providers, and government agencies
- Advising executors and administrators on their legal obligations
- Managing creditor and beneficiary enquiries
- Preparing final estate distributions
We understand that administering an estate can be a challenging experience. Our role is to provide practical guidance and support, allowing you to focus on your family while we take care of the legal process.