Long awaited Increase to Threshold for Probate

The threshold for requiring Probate or Letters of Administration will rise from $15,000 to $40,000 from 24 September 2025. This long-awaited update reflects the reality of today’s estate values and will provide welcome relief for many families navigating the estate process. The current $15,000 threshold was set back in 2009 and much has changed.

A threshold of $15,000 was an unrealistic amount for estates given rising KiwiSaver balances which are now a common and significant part of people’s estates, even modest estates now often exceed the outdated limit.

The low threshold meant a lot of time was spent preparing court documents, calling in assets, and dealing with day-to-day administration of an estate causing costs to quickly accumulate when in some cases, the assets of the estate were minimal. This welcome increase means estates with minimal assets can be administered quicker without incurring court or legal costs.

What might this mean for you?

The threshold increasing to $40,000 means estates valued below this figure, where assets are held solely in the deceased’s name, can be administered without needing to apply to the High Court for Probate or Letters of Administration.

This will cause fewer delays in releasing funds to beneficiaries and enable faster payment of estate liabilities, which may reduce stress for families at a time which is already challenging, allowing loved ones to focus on grieving rather than paperwork.

For any questions, please contact our Estates Administrator and Legal Executive, Michelle Hoy on 06 872 8210 or by email at [email protected].