Relief for grieving families

We heard from a submitter to our red tape tipline that some Kiwis are suffering distressing and needless legal difficulty at what is already a hard time, because the probate threshold has failed to keep up with changes in society and inflation.

The probate threshold relates to the value of certain individual assets of a deceased estate. For assets with a value over $15,000, those executing a will or administering an estate are forced to go through a more formal legal process requiring court oversight. Below the threshold, there is no court approval needed to distribute assets, saving time, effort and money.

What did we do?  

We completed a rapid review and found the threshold for estate assets that can be distributed without probate hasn’t been updated since 2009. Inflation since then has gone up by 48 per cent.  

If the threshold were updated just to reflect the increase in inflation, it would lift from $15,000 to around $22,000.

We found these current settings are out-dated and no longer fit-for-purpose, creating unnecessary difficulty in the lives of New Zealanders mourning the loss of a loved one.  

We advised the Regulation Minister David Seymour that it would be relatively straightforward to remedy. The Administration (Prescribed Amounts) Regulations 2009 set the probate threshold. The responsible Minister can amend the regulations with appropriate Cabinet approval.

Minister Seymour agreed, and has written to the responsible Minister of Justice, Hon Paul Goldsmith with our recommendation for change.

What is the benefit for New Zealanders?  

Sparing New Zealanders unnecessary administrative burden when distributing smaller estates, so they can focus on what’s most important to them during that difficult time in their lives.