Intestacy Distribution in New Zealand - How Assets Are Divided

When a person dies without a valid will in New Zealand (intestate), the Administration Act 1969 provides a strict formula for how their estate must be distributed. This can sometimes lead to outcomes that the deceased may not have intended, which is why having a will is so important.

Understanding Intestacy Distribution in New Zealand

The distribution of assets under intestacy follows a pre-determined formula based on which family members survive the deceased. Here’s how it works:

Spouse/Partner Only (No Children or Parents)

If the deceased is survived by a spouse or partner but no children or living parents, the spouse or partner inherits the entire estate.

Spouse/Partner and Children

When both a spouse/partner and children survive the deceased:

The spouse/partner receives all personal chattels
The spouse/partner receives a statutory legacy of $155,000 (plus interest)
The remaining estate is divided with 1/3 to the spouse/partner and 2/3 to be shared equally among the children

Spouse/Partner and Parents (No Children)

If the deceased leaves a spouse/partner and parent(s) but no children:

The spouse/partner receives all personal chattels
The spouse/partner receives a statutory legacy of $155,000 (plus interest)
The remaining estate is divided with 2/3 to the spouse/partner and 1/3 to the parent(s)

Children Only (No Spouse/Partner)

If the deceased leaves children but no spouse or partner, the entire estate is divided equally among the children.

Parents Only (No Spouse/Partner or Children)

If the deceased leaves parent(s) but no spouse/partner or children, the parents inherit the entire estate in equal shares.

More Distant Relatives

If there is no spouse/partner, children, or parents, the estate passes to the following relatives in order:

Brothers and sisters (or their children if a sibling is deceased)
Grandparents
Aunts and uncles
First cousins

No Known Relatives

If no relatives can be found, the estate passes to the Crown.

The Importance of Making a Will

The intestacy rules are a “one-size-fits-all” approach that may not reflect your wishes. With a will, you can:

Choose who inherits your assets
Specify the proportions each beneficiary receives
Name guardians for minor children
Include specific bequests for friends or charitable organizations
Potentially minimize tax implications and administrative costs

Need Help with Intestacy Matters?

If you’re dealing with a loved one’s estate where there’s no will, our experienced team can help you navigate the intestacy process in New Zealand.