Deceased Estate NZ: A Practical Guide for Executors and Administrators

What Is a Deceased Estate?

A deceased estate is the total of a person’s assets and liabilities at the date of their death. It includes:

• Real property (houses, land, investment properties)
• Bank accounts and term deposits
• KiwiSaver and superannuation balances
• Shares, managed funds, and other investments
• Vehicles, boats, and other registered assets
• Personal belongings (furniture, jewellery, collections)
• Life insurance policies (where payable to the estate)
• Business interests
• Outstanding debts, including mortgages, credit cards, and personal loans

In New Zealand, the legal process of managing a deceased estate is called “estate administration.” The first step is almost always obtaining a grant from the High Court — either probate or letters of administration — which gives the executor or administrator legal authority to deal with the estate’s assets.

Who Manages a Deceased Estate in NZ?

The answer depends on whether the deceased left a valid will.

If there is a will: The executor named in the will manages the estate. The executor applies for probate — a court order confirming the will is valid and authorising the executor to act. See our complete probate guide for the full process.

If there is no will (intestacy): The court appoints an administrator — usually the deceased’s spouse or partner, or their closest next of kin. The administrator applies for letters of administration, which serves the same purpose as probate but without a will to validate. The estate is then distributed according to the intestacy rules in the Administration Act 1969, not according to what anyone believes the deceased would have wanted.

If the executor cannot act: If the named executor has died, lacks capacity, cannot be found, or refuses to act, someone else can apply for “letters of administration with will annexed.” The administrator follows the terms of the will as far as possible.

For a full breakdown of what the executor or administrator must do, see our executor duties guide.

Do You Always Need a Grant from the Court?

Not always. Some estates can be managed without applying for probate or letters of administration. You may not need a grant if:

• The estate consists only of jointly owned assets (which pass automatically to the surviving owner)
• No single institution holds more than $40,000 of the deceased’s assets
• The only assets are personal belongings and small bank balances that institutions are willing to release without a grant

Institutions will typically release funds up to $40,000 on the basis of a statutory declaration rather than a court order. Property transfers through Land Information New Zealand always require a grant, regardless of value.

For detailed guidance, see our article on when probate is not required.

The Deceased Estate Process: Step by Step

Here is the standard process for managing a deceased estate in New Zealand.

Step 1: Locate the will and secure the estate

Find the original will (check with the deceased’s lawyer, bank, or at home). Secure any property — change locks if necessary, notify insurers, and redirect mail. Obtain multiple certified copies of the death certificate from Births, Deaths and Marriages NZ.

Step 2: Identify assets and liabilities

Contact banks, KiwiSaver providers, insurers, and other institutions to identify what the deceased held. While a formal schedule of assets and liabilities is not required for the court application itself, identifying assets early is an important part of the estate administration process. For guidance on dealing with banks, see accessing deceased bank accounts in NZ.

Step 3: Apply for probate or letters of administration

Prepare and file the court application at the Wellington High Court Probate Registry. The application includes:

• Form PR1 (application for probate) or equivalent for letters of administration
• Probate in Common Form (for probate applications)
• Form PR2 (affidavit of the executor or administrator)
• The original will — which must accompany the application

The High Court filing fee is $269. Simply Probate prepares probate applications for a fixed $699 + GST, with documents ready in 1–2 business days (letters of administration applications are available on application). See our probate application guide for details on the forms.

Step 4: Receive the grant

The court typically processes compliant probate applications within 1–2 weeks, assuming no queries arise. Letters of administration applications typically take 2–4 weeks. See our probate timeline guide for details. Once the grant is issued, banks and other institutions will recognise the executor’s or administrator’s authority to deal with the estate.

Step 5: Collect assets and pay debts

With the grant in hand, the executor or administrator:

• Closes bank accounts and transfers funds to an estate account
• Claims KiwiSaver and insurance payouts
• Pays outstanding debts, including funeral expenses, mortgages, and credit cards
• Files the deceased’s final tax return with Inland Revenue
• Sells property if required by the will or necessary for distribution

Step 6: Distribute the estate

Most executors wait at least 6 months from the date of the grant before making final distributions. If the estate is distributed within 6 months of the grant, the executor may be personally liable for any debts of the estate that come to light afterwards. Claims under the Family Protection Act 1955 have a separate 12-month limitation period. For a full explanation, see the 6-month rule after probate.

Distribution follows the terms of the will (if there is one) or the intestacy rules (if there is not).

Deceased Estate Costs in NZ

The costs of managing a deceased estate fall into several categories.

Court fees:

Application type	Fee
Probate application	$269
Letters of administration	$269

Legal fees:

Provider	Typical cost
Simply Probate (application preparation only)	$699 + GST
Traditional law firm	$2,000–$5,000+
Public Trust (full administration)	Varies — often a percentage of estate value

Other costs that may arise:

• Property valuations: $500–$2,000
• Real estate agent commissions (if property is sold): 2–4% of sale price
• Accountant fees for final tax returns: $300–$1,000
• Conveyancing fees for property transfers: $1,000–$2,000

For a comprehensive breakdown, see our probate cost guide.

Accessing Bank Accounts in a Deceased Estate

Banks will freeze accounts as soon as they are notified of the account holder’s death. To access the funds, the executor or administrator generally needs to produce the grant of probate or letters of administration.

Some exceptions apply:

• Joint accounts continue to operate for the surviving account holder
• Some banks release small amounts for funeral expenses at their discretion
• Institutions may release balances under $40,000 on the basis of a statutory declaration

Each bank has its own process and documentation requirements. For a detailed guide covering the major NZ banks, see accessing deceased bank accounts.

Tax Obligations for Deceased Estates

The executor or administrator must notify Inland Revenue (IRD) of the death. Key tax obligations include:

Final income tax return: A final tax return must be filed for the period from 1 April to the date of death. This covers any income the deceased earned during that period — salary, rental income, interest, dividends.

Estate income: Any income earned by the estate after the date of death (for example, rent from an investment property, or interest on estate bank accounts) is taxable. The executor may need to apply for an IRD number for the estate.

No inheritance tax: New Zealand does not have inheritance tax, estate duty, or capital gains tax on assets transferred to beneficiaries. The $269 court filing fee is the only government charge.

IRD has a specific process for notifying them of a death — the executor should contact IRD as soon as practicable after the death.

How Long Does Estate Administration Take?

The total time from death to final distribution depends on the estate’s complexity:

Estate type	Typical timeline
Simple (bank accounts, no property)	4–6 months
Standard (one property, bank accounts, KiwiSaver)	6–9 months
Moderate (multiple properties, investments)	9–12 months
Complex (business interests, overseas assets, disputes)	12–24+ months

The court processing step takes 1–2 weeks for probate or 2–4 weeks for letters of administration, assuming no queries arise. The rest of the timeline is estate administration — collecting assets, paying debts, and distributing. For a detailed timeline breakdown, see how long does probate take in NZ.

Common Mistakes When Managing a Deceased Estate

Distributing too early. Making final distributions before the 6-month claim period expires can expose the executor to personal liability if a claim is later made under the Family Protection Act.

Not advertising for creditors. Publishing a notice in the New Zealand Gazette and a local newspaper gives protection against unknown creditors. Without this step, the executor may be personally liable for debts discovered after distribution.

Mixing estate and personal funds. Always open a separate estate bank account. Never deposit estate funds into a personal account — this creates accounting and legal complications.

Failing to file a final tax return. The deceased’s tax obligations do not end at death. The executor must file the final return and settle any tax owing before distributing the estate.

Ignoring jointly owned assets. Jointly owned property (as joint tenants) passes automatically to the surviving owner and does not form part of the estate. This needs to be checked — the title may say “tenants in common,” which is different. See joint property and probate.

Frequently Asked Questions

What does “deceased estate” mean in NZ?

A deceased estate is everything a person owned and owed at the time of their death. It includes all assets (property, money, investments, belongings) and all liabilities (debts, mortgages, outstanding bills). Managing the estate involves obtaining legal authority from the court, collecting assets, paying debts, and distributing what remains to the beneficiaries.

How do I manage a deceased estate in New Zealand?

The standard process is: (1) locate the original will, (2) identify all assets and liabilities, (3) apply for probate or letters of administration from the High Court, (4) collect assets and pay debts, (5) distribute the estate to beneficiaries. The court application costs $269 in filing fees. Simply Probate prepares probate applications for $699 + GST (letters of administration on application).

Do I need a lawyer for a deceased estate?

You are not legally required to use a lawyer — you can prepare and file the court application yourself. However, the forms and procedural requirements are technical, and errors cause delays. Most executors find professional preparation worthwhile. Simply Probate offers a fixed-fee alternative to traditional law firms at $699 + GST.

How long does it take to settle a deceased estate in NZ?

The court processes compliant probate applications in 1–2 weeks (letters of administration typically 2–4 weeks). The full estate administration — collecting assets, paying debts, and distributing to beneficiaries — can take 6–12 months depending on the complexity of the estate.

Is there inheritance tax on deceased estates in New Zealand?

No. New Zealand does not have inheritance tax, estate duty, or capital gains tax on estate distributions. The only government charge is the $269 High Court filing fee for the probate or letters of administration application.

Need Help With a Deceased Estate?

Simply Probate prepares probate applications for a fixed $699 + GST, with documents ready in 1–2 business days and NZ lawyer oversight on every application. Letters of administration applications are also available — contact us for a quote.

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Simply Probate is a probate application preparation service. We do not provide tax advice. Tax obligations arising from a deceased estate should be discussed with an accountant or tax advisor.