The Probate (and Letters of Administration) threshold (prescribed amount) was increased on 24 September 2025, from $15,000 to $40,000 under the Administration Act.

Probate is the High Court’s seal of approval to administer an estate of someone with a Will, and Letters of Administration is the same approval for an estate of someone who passes away without a Will.

This new threshold means that those named as executors, or in the case of those passing without a Will, certain family members, will be able to deal with loved one’s assets when they pass away without having to formally apply to the High Court for Probate or Letters of Administration, so long as the deceased’s assets are under the $40,000 threshold.

However  there are a few restrictions, and things you need to consider when deciding if Probate and/or Letters of Administration are still required.

What the new threshold applies to:

It applies to certain types of financial assets, for example:

• Funds held by a KiwiSaver or Superannuation provider.
• Funds held in a bank.
• Funds held by an employer.
• Funds held by Kainga Ora, ACC, MSD or the Crown.

The new threshold also applies to life insurance policies, where there is not another named owner or beneficiary.

What the new threshold does not apply to:

The increase in the threshold does not apply to shares, which remains at $15,000.

The new threshold also doesn’t apply to non-financial assets, such as real estate, vehicles, jewellery or artwork.   

Accordingly, if the deceased owns real estate, Probate or Letters of Administration will need to be applied for in order to deal with this asset as no real estate will be under the threshold level.

There are some exclusions of financial assets from the new threshold, such as cryptocurrency, exchanges and blockchain platforms such as Ripple, Binance, Bitcoin and Ethereum.  This is because these are not institutions included in the list in section 65 of the Administration Act.

The reason is that cryptocurrency and the like were not in existence in 1969 when the Act came into force, and there have been no further changes to the Administration Act, except for the increase to the threshold. 

Accordingly, if the deceased held cryptocurrency and the like then Probate or Letters of Administration will need to be applied for if it is over $15,000.

Does the increase only apply to those who die after 24 September 2025? 

No, it does not.  As long as there is not already a Grant of Probate or Letters of Administration in place, the new threshold will apply to any applications for Probate or Letters of Administration made after 24 September 2025, regardless of when the person passed away.

Jointly owned assets

The threshold only applies to assets in a person’s sole name.  Any jointly owned assets such as bank accounts and real estate will transfer to the surviving owner without the need to apply for Probate or Letter of Administration (as was the case before the change to the threshold). 

Please note that there will be documentation to sign and evidence such as a death certificate required to be provided in order for the transfer to take place. It does not happen automatically.

In the case of jointly owned real estate, this change of ownership will be required to be completed by a legal professional. 

It is always recommended to seek legal advice, and especially if you are unsure if the above new threshold will apply.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.