Increased probate threshold good news for bereaved families

Families of the deceased will save time and money as a result of changes to probate law and new systems put in place by the Ministry of Justice. 

Justice Minister Hon Paul Goldsmith announced on 31 July 2025 that Cabinet has approved an increase in the financial threshold at which the High Court needs to approve the distribution of assets when someone dies, from $15,000 to $40,000. 

The threshold was last set in 2009 before the implementation of KiwiSaver. Most estates now include KiwiSaver balances of more than $15,000 which means they have to go through the High Court process. This results in a significant proportion of smaller estates being eaten up in court costs and legal fees.

The increase in the threshold means banks, insurers and others will be able to distribute assets   in smaller estates without the relatives and other beneficiaries of the deceased person having to go to the High Court, leaving more of an estate for the beneficiaries.  

The change means small, straightforward estates can be quickly distributed without incurring court or legal costs while freeing up valuable High Court time to deal with more complex and higher value estates. 

The Law Commission recommended the Government consider increasing the threshold in its review of the law of succession in 2021. Following a 2024 report from Parliament’s Petitions Committee recommending a change, the Minister asked the Ministry to consult with key stakeholders, including the law profession and financial services industry on an appropriate new threshold. 

Probate applications are handled by Registrars at the High Courts in Auckland, Wellington, and Christchurch, with administration centrally managed by a team at the Wellington High Court.

The Ministry has recently reviewed its probate processes to ensure applications are handled as efficiently as possible. The Ministry has an internal standard of completing 75 percent of probate applications in 15 working days, and as of June 2025, 89 percent were completed in that timeframe. 

This change to the threshold amount will be in the Administration (Prescribed Amounts) Amendment Regulations(external link) and will come into force on 24 September 2025.

You can find full information about probate on the Ministry’s website

The Minister’s announcement is available on the Beehive website(external link).

The Ministry's briefing, Cabinet paper, Cabinet minute and other related information is available on the Ministry's website [PDF, 1.7 MB]

 

 

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