A Will gives you control over how your assets are distributed and who is responsible for carrying out your wishes following your passing. It also helps your family avoid unnecessary delays and legal costs.
From 24 September 2025, the threshold for probate – the legal process where the High Court validates a deceased person’s Will – will rise from $15,000 to $40,000.
Here’s what the changes will mean in practice:
- If your combined assets are valued above $40,000 (including KiwiSaver, payouts, bank accounts, property, and belongings), your executor must apply for probate (the formal process where the High Court validates a deceased person’s Will and grants the official executor’s authority to administer your estate).
- If your estate is valued below $40,000, probate may not be required – but institutions like banks and KiwiSaver providers will still need to know who should receive the money. Without a Will, this can become complicated, especially for blended families or where there is no obvious next of kin.
What Happens Without a Will?
- Estates over $40,000: If you don’t have a Will, the court will distribute your estate according to the Administration Act 1969. This can be a lengthy and expensive process, delaying loved ones’ access to your savings, KiwiSaver balance, or insurance payouts, and adding stress during an already difficult time.
- Estates under $40,000: From September 2025, smaller estates (below $40,000) can be managed by next of kin without going through probate. However, KiwiSaver balances and life insurance payouts often exceed this threshold, so many estates may still fall into the probate category.
It’s also worth remembering that Wills aren’t just about money. If you have children or pets, a Will allows you to nominate who should care for them. Without one, the courts will make that decision on your behalf, which may not align with your wishes.
The Takeaway
The increase to the probate threshold is a welcome and overdue update, making the process simpler for families managing small estates. But it doesn’t remove the need for a Will.
- Even modest KiwiSaver balances and standard life insurance cover can easily push an estate over $40,000.
- A Will ensures your loved ones avoid unnecessary legal costs and delays.
- Importantly, a Will allows you to decide who inherits your assets and who cares for your children or pets.
Having a valid Will is one of the simplest and most important steps you can take to protect your wishes and make things easier for those you leave behind.
If you want to learn more about how we can support you in creating a Will in partnership with Footprint, contact us at footprint@advicefirst.co.nz.
