Executor Duties in NZ: A Practical Guide for Executors of a Will

Being named as an executor is a position of real responsibility, and it usually arrives at a difficult time. If a family member or friend has appointed you in their will, you are the person the law looks to for carrying out their wishes, gathering in their assets and making sure the right people receive what they are entitled to. This guide explains what an executor actually has to do in New Zealand, the order the work happens in, and the areas where executors most often need professional help. It is written for people who have just been asked to act, as well as for anyone thinking about who to name in their own will.

An executor is the person, or people, named in a will to administer the estate of the person who has died. The role is sometimes described as trustee, and the two terms often refer to the same people. Executors are responsible for proving the will where required, collecting the assets, paying the debts and taxes of the estate, and distributing what remains to the beneficiaries named in the will. Executors and beneficiaries are frequently the same people, for example where a surviving spouse is both the executor and the main beneficiary, but that is not always the case.

The executor’s authority comes from the will itself, and where a court grant is needed, from the grant of probate issued by the High Court. Until any required grant is in place, banks, KiwiSaver providers and insurers will generally not release significant assets. The framework for the role sits in the Administration Act 1969.

You do not have to act as an executor simply because you have been named. If you would prefer not to take on the responsibility, you can renounce, which means formally stepping aside before you begin dealing with the estate. Renouncing involves signing a document, and it is important to do this before you start acting, because once you have intermeddled in the estate you may lose the right to step back cleanly. If you are named alongside others, they can usually continue without you. If you are unsure whether to accept, it is worth talking to a lawyer early so you understand what the role involves before you commit.

The immediate priority after someone dies is the family and the funeral, and the estate work does not have to begin straight away. When you are ready, the practical starting point is usually a conversation with the law firm that holds the will, which is often the firm that prepared it. That first discussion helps confirm who the executors are, what the will says and roughly what assets are involved. A death certificate will be needed, and this is usually obtained through the funeral director. The death certificate is accepted as proof of the death and is used to notify banks, insurers and other organisations.

Where executors live in different parts of the country, meetings can be held by phone or video, and most communication after the initial period is by email. Getting organised early makes the rest of the administration smoother.

Once you have accepted the role, your duties run through the whole administration, from locating the will to the final distribution. The main tasks are:

• Locate the original will, confirm its terms and keep it safe and unmarked, because the High Court will not accept a will that has been altered or damaged.
• Identify all assets and liabilities, including bank accounts, KiwiSaver, investments, property, vehicles, life insurance and any debts owed by the estate.
• Work out whether a grant of probate is required, and apply to the High Court where it is, usually with the help of a lawyer.
• Collect in the assets once any grant is issued, sell property where the will requires it, and pay all debts, funeral costs and tax.
• Keep clear and accurate records of everything received and paid on behalf of the estate.
• Distribute the balance of the estate to the beneficiaries named in the will, in the correct shares and at the right time.

Executors are personally responsible for administering the estate correctly, which is why many choose to act with professional support rather than carry the risk alone.

One of the first practical issues executors meet is that a bank will freeze an account held in the sole name of the person who has died once it is notified of the death. This is a safety measure to prevent unauthorised withdrawals, but it also stops direct debits. Payments that are still essential, such as insurance premiums, rates and power, need to be reviewed quickly and alternative arrangements made. Insurance matters most here, because a missed premium can cause a policy to lapse. Where an account is held jointly with a partner, the account usually remains open, and the deceased’s name can be removed by taking the death certificate to the bank. Part of the executor’s job is to manage these arrangements so nothing important is lost in the gap.

Not every estate needs a grant of probate. Whether it does depends on what the person owned and how it was held. As a general rule, probate or letters of administration is required where the deceased owned land or a house in their sole name, or held assets worth more than the current threshold with a single institution. Assets held jointly usually pass to the surviving owner automatically and do not need a grant. Working out which category an estate falls into is one of the executor’s first real decisions, and it sets the timeline for everything that follows. Our companion article, Probate in NZ, explains the process and the current threshold in full.

Throughout the administration, money received and paid on behalf of the estate is handled through the law firm’s trust account, which gives an accurate record of every transaction relating to the estate. Funds paid in should reference the estate name so they can be tracked, and payments out must be supported by evidence such as the relevant invoice. Any payment from the trust account is approved by the executors and then authorised by a director of the firm. This structure protects both the executors and the beneficiaries by keeping the money trail clear and auditable.

Executors do not usually distribute an estate the moment probate is granted. Certain people, including a surviving spouse, partner, or children who believe they have not been adequately provided for, may bring a claim against an estate under the Family Protection Act 1955. In addition, estates may be subject to other claims, including relationship property claims by a surviving partner and testamentary promise claims where a person alleges that the deceased promised to provide for them in their Will in recognition of services rendered during the deceased’s lifetime.

An executor who distributes within six months of the grant can be personally liable if a claim is later successful. For that reason, careful executors generally wait until the six month period has passed before making final distributions, unless the risk of a claim is clearly negligible. This is why beneficiaries are often told that funds will not be paid immediately after probate.

The responsibility that comes with the role is genuine. If an executor distributes the estate incorrectly, pays the wrong people or ignores a valid claim, they can be held personally liable for the loss. Executors are also expected to act in the interests of the beneficiaries and to keep proper accounts. None of this should put people off acting, but it does explain why so many executors choose to work with an experienced estates team. Our estate administration lawyers regularly act for executors across Hawke’s Bay who want the reassurance of professional support and someone to liaise with banks, insurers and other organisations on their behalf.

Can an executor also be a beneficiary in NZ?

Yes. It is very common for an executor to also be a beneficiary, for example where a surviving spouse or an adult child is both administering the estate and receiving from it. Being a beneficiary does not prevent you from acting, although you must still carry out your duties even handedly for all beneficiaries.

How much is an executor paid in NZ?

A family member or friend acting as executor is not usually paid, although they can be reimbursed for reasonable expenses. Professional executors, such as a law firm or trustee company, charge for the work involved. It is sensible to confirm the basis of any fees at the outset so the estate and the beneficiaries know what to expect.

How long does an executor have to settle an estate in NZ?

There is no fixed deadline, but a simple estate is often settled within about a year. Executors commonly wait until at least six months after the grant before making final distributions, to allow the claim period to pass. Estates involving a property sale, a trust or a dispute can take longer.

Can an executor be removed?

Yes. Where an executor is unable or unwilling to act, or is not administering the estate properly, the High Court can remove and replace them. This is not common, and it is far better to raise concerns early with a lawyer than to let a problem develop.

Acting as an executor can feel daunting, but you do not have to do it alone. Bramwell Bate’s experienced estates team supports executors and families throughout Hawke’s Bay with probate applications, dealings with banks and insurers, and the full administration of estates. Whether you need someone to handle the whole process or simply to guide you through the parts that matter most, we can help. Contact us on 06 872 8210 or through our website and we will talk you through the next steps.