Simply Probate

Can You Withdraw Money From a Dead Person's Account in NZ?

Published: 1 October 2024 • Updated: 1 October 2024

Understanding Financial Access After Death in New Zealand

One of the most common and urgent questions that arises after someone passes away is whether family members can access the deceased’s bank accounts. This practical concern often comes up when there are immediate expenses such as funeral costs to cover, or ongoing household bills to pay.

This guide explains the rules around accessing a deceased person’s bank accounts in New Zealand, the proper legal processes to follow, and what exceptions might apply in certain situations.

The General Rule: Accounts Are Frozen

When a bank is notified of a customer’s death, the standard procedure is to freeze their accounts. This means:

  • Automatic payments and direct debits are typically stopped
  • Credit cards and online banking access are deactivated
  • Joint accounts may be treated differently (explained below)
  • Term deposits may continue until maturity

This freezing of accounts serves to protect the deceased’s estate until the proper legal authority to manage it has been established.

When There Is a Will

If the deceased left a will, the executor named in the will has the authority to access accounts, but only after:

  • The will has been validated through the probate process
  • The High Court has issued a Grant of Probate
  • The executor has presented this grant to the bank

When There Is No Will

If there was no will (intestacy):

  • The court-appointed administrator has authority after receiving Letters of Administration
  • This person is typically the spouse/partner or next of kin
  • The process can take longer than probate (typically 6-8 weeks)

Immediate Access Options Before Probate/Administration

Funeral Expenses

Most New Zealand banks understand the need to pay funeral costs and may release funds specifically for this purpose:

  • The funeral director’s invoice is usually required
  • Banks typically limit this to the actual funeral costs
  • Some banks may require a statutory declaration
  • This is at the bank’s discretion and policies vary

Joint Accounts

Accounts held jointly with the deceased generally remain accessible:

  • The surviving account holder retains full access
  • These accounts typically operate on a “right of survivorship” principle
  • The funds automatically belong to the surviving account holder
  • The account doesn’t form part of the estate requiring probate

Small Balances

For accounts with smaller balances:

  • Many banks have simplified processes for releasing funds under the statutory threshold ($15,000 until 23 September 2025, $40,000 from 24 September 2025 onwards)
  • This typically requires a statutory declaration and indemnity
  • Death certificate and proof of relationship are usually needed
  • This approach is at the bank’s discretion, not a legal right

Bank-Specific Policies in New Zealand

While all banks follow the same general legal principles, their specific policies may vary:

ASB Bank

  • May release up to the statutory threshold ($15,000 until 23 September 2025, $40,000 from 24 September 2025 onwards) with a statutory declaration
  • Requires confirmation no one is applying for probate/administration
  • Needs indemnity from the person receiving funds

ANZ

  • Considers releasing funds for funeral expenses upon request
  • Offers a simplified process for estates under the statutory threshold ($15,000 until 23 September 2025, $40,000 from 24 September 2025 onwards)
  • May require additional documentation for overseas deceased customers

BNZ

  • Has specific deceased estate teams to handle these matters
  • May consider hardship applications for surviving family
  • Offers guidance through their bereavement support services

Westpac

  • Will consider releasing funeral expenses directly to funeral directors
  • Has procedures for small estates without formal administration
  • Provides dedicated estate management support

Kiwibank

  • Offers a simplified process for small balance accounts
  • May release funds for immediate needs with proper documentation
  • Has specific forms for deceased estates

The Formal Process for Accessing Accounts

1. Notify the Bank

The first step is always to notify all banks where the deceased held accounts:

  • Provide a death certificate
  • Inform them if there is a will
  • Let them know who the executor or likely administrator will be
  • Ask about their specific requirements and processes

2. Apply for Probate or Letters of Administration

3. Present Grant to Financial Institutions

Once the Grant of Probate or Letters of Administration is received:

  • Present the original or certified copies to each financial institution
  • Complete the bank’s deceased estate forms
  • Provide identification and proof of your role
  • Specify whether funds should be paid to an estate account or distributed

4. Estate Account

The executor/administrator typically:

  • Opens a specific estate account (e.g. “Estate of [name], deceased”)
  • Transfers all funds from the deceased’s accounts to this estate account
  • Uses this account for receiving estate income and paying debts
  • Keeps clear records of all transactions for the estate accounts

Accessing a deceased’s accounts without proper authority can have serious consequences:

Potential Criminal Charges

  • Unauthorised access might constitute theft or fraud
  • This applies even to family members with good intentions
  • Banks have security systems that can detect unusual access

Civil Liability

  • You could be personally liable to reimburse the estate
  • Other beneficiaries might take legal action against you
  • You might be removed as executor/administrator

Bank Penalties

  • Banks may freeze all accounts if they suspect unauthorised access
  • This can cause further delays in releasing legitimate funds
  • Your own banking relationship could be affected

Special Circumstances and Exceptions

Power of Attorney

It’s important to understand that:

  • An Enduring Power of Attorney ends when the person dies
  • It does not give authority to access accounts after death
  • A new legal authority (probate/administration) is required

Accounts in Trust

For accounts held in trust:

  • The treatment depends on the type of trust
  • Some trusts continue after death and trustees retain authority
  • Trust deeds should be reviewed by a legal professional

Term Deposits and Investments

Fixed-term investments may be handled differently:

  • Some may continue until maturity
  • Others might have early release provisions for deceased estates
  • Investment platforms may have specific deceased estate processes

Practical Tips for Executors and Families

Keep Records of All Expenses

If you’re paying for funeral or other necessary expenses:

  • Keep detailed records and receipts
  • You can claim reimbursement from the estate later
  • Document why the expense was necessary

Consider Funeral Insurance/Pre-paid Funerals

To avoid issues with funeral expenses:

  • Funeral insurance pays directly to the funeral provider
  • Pre-paid funeral plans avoid the need to access accounts
  • Some funeral directors will wait for payment until probate is granted

Plan for Account Access in Advance

While alive, consider:

  • Maintaining a joint account for household expenses
  • Leaving a small emergency fund accessible to family
  • Documenting all accounts clearly for your executor
  • Discussing your financial arrangements with family members

This information is current as of May 2025 but is subject to change as bank policies and laws evolve. For the most current advice specific to your situation, please consult with a legal professional.