Probate Threshold Changes articles

Starting 24 September 2025, the threshold asset value for deceased estates requiring a grant of probate in the High Court will be raised significantly—from the previous modest $15,000 to $40,000.

This marks the first update to the threshold since 2009, a time before KiwiSaver was introduced and estate values along with legal costs increased substantially. Under the old threshold, many smaller estates were swallowed up by court and legal fees, leaving beneficiaries with far less than intended. By raising the threshold, the new rules aim to ease this burden, allowing Executors to distribute lower-value estates more swiftly and cost-effectively. This ensures that more of the estate’s value reaches the rightful heirs, rather than being lost to administrative expenses. ^[1]

The Hon Paul Goldsmith, Minister of Justice, emphasized the balance the new threshold strikes: “I’m assured $40,000 is still sufficiently low enough to ensure there are still appropriate safeguards through the oversight of the High Court for higher value assets, to ensure against potential dishonesty, fraud, or the deceased person’s wishes not being followed”. The Ministry consulted extensively with the legal profession and financial services industry to set a threshold that reflects current realities without compromising protections. ^[2]

For Executors and beneficiaries alike, this change should bring welcome relief. Smaller estates can now avoid lengthy and costly probate processes, making the final stages of estate administration smoother and more efficient. This reform has been broadly welcomed as a long-overdue update that cuts red tape and legal costs for grieving families. ^[3]

If you have any questions about how this change might affect you or the administration of an estate, please reach out to our commercial or property teams at advice@shlaw.co.nz. We’re here to help guide you through the process and ensure your interests are protected.

[1] https://www.justice.govt.nz/about/news-and-media/news/increased-probate-threshold-good-news-for-bereaved-families/

[2] https://www.beehive.govt.nz/release/increasing-probate-threshold-families

[3] https://www.nzherald.co.nz/business/personal-finance/government-lifts-probate-threshold-cutting-red-tape-associated-with-death/NVYGZ5NB6ZHU7DIH2JB7WQ5XSY/