Do You Have to Wait 6 Months After Probate in NZ?

Understanding the Six-Month Rule in New Zealand Probate

If you’re an executor or beneficiary of an estate in New Zealand, you may have heard about the “six-month rule” and wonder: “do you have to wait 6 months after probate in NZ before distributing assets?” This is one of the most common questions about the probate process in New Zealand.

This guide explains the six-month rule, when it applies, when exceptions might be possible, and how to navigate this waiting period effectively.

What Is the Six-Month Rule in New Zealand?

The Legal Basis

The six-month rule refers to the period after probate is granted during which certain family members can make claims against an estate under:

The Family Protection Act 1955 - Allowing claims from close family members who believe they weren’t adequately provided for
The Law Reform (Testamentary Promises) Act 1949 - Enabling claims from people who were promised something by the deceased in return for services or support

Under these Acts, eligible claimants have up to 12 months from the grant of probate to file claims. However, executors generally wait 6 months before making final distributions, as this provides a reasonable balance between protecting the executor and not unnecessarily delaying beneficiaries.

Is the Six-Month Wait Legally Required?

This is a key distinction that many people misunderstand:

There is no strict legal requirement that executors must wait 6 months before distributing assets
However, executors who distribute before 6 months may be personally liable for any successful claims if they were aware of potential claimants
The 6-month period has become standard practice as a protective measure for executors

Protection for Executors Who Follow the Six-Month Rule

Executors who wait 6 months before distributing receive important legal protections:

Under Section 47 of the Administration Act 1969, executors can distribute assets after the six-month period without being personally liable for any claims they weren’t aware of at the time of distribution
This provides significant protection, although it’s important to note that the estate itself remains liable for valid claims made within the full 12-month period

When Early Distribution May Be Possible

There are several circumstances when distributing before the six-month period ends might be reasonable:

Low-Risk Scenarios

Small estates with simple family structures
When all potential claimants are also the beneficiaries
When potential claimants provide written waivers of their right to claim

Partial Early Distributions

Distributing specific gifts while holding the residuary estate
Making interim distributions while keeping enough funds to cover potential claims
Advancing funds to beneficiaries in genuine financial need

Protective Measures for Early Distribution

If distributing early, executors should consider:

Getting indemnities from beneficiaries (written agreements to return funds if needed)
Keeping detailed records of distribution decisions
Documenting any known potential claimants and the assessment of risk

What to Do During the Six-Month Waiting Period

The waiting period doesn’t mean nothing happens with the estate. Executors can and should:

Continue Estate Administration

Collect all assets and transfer them to estate accounts
Pay debts, taxes, and administration expenses
Sell assets that need to be liquidated
Prepare for eventual distribution

Communicate with Beneficiaries

Explain the six-month rule and why it exists
Provide regular updates on estate administration progress
Set realistic expectations about when distributions might occur
Discuss any pressing financial needs that might justify advances

Address Potential Claims Proactively

Identify any potential claimants
Consider whether negotiated settlements might be appropriate
Consult with legal advisors about likelihood of claims and potential impact

Special Circumstances Affecting the Six-Month Period

Contested Wills

If the validity of the will itself is being challenged:

The six-month period doesn’t begin until the will dispute is resolved
The grant of probate is typically delayed until will validity is determined
This can significantly extend the overall timeline

International Assets

When the estate includes overseas assets:

Different countries may have different waiting periods and rules
Multiple probate processes may run in parallel
The executor may need to follow the longest applicable waiting period

Trusts Created by the Will

If the will establishes ongoing trusts:

Initial trust funding might proceed after six months
Trust distributions follow the terms of the trust, not the six-month rule
Trustees have separate duties that continue beyond the probate process

After the Six-Month Period: Next Steps

Once the six-month period has passed, executors typically:

Review potential claims - Check if any claims have been filed or notified
Prepare final accounts - Document all estate transactions to date
Calculate final distributions - Determine exact entitlements for each beneficiary
Create a distribution plan - Decide how and when distributions will be made
Execute distributions - Transfer assets or funds to beneficiaries
Obtain receipts - Have beneficiaries acknowledge receipt of their inheritance
Close estate accounts - Finalise all administrative details

Common Questions About the Six-Month Rule

Can beneficiaries force distribution before six months?

No, beneficiaries cannot legally compel an executor to distribute before the six-month period ends. The executor has a duty to administer the estate properly, which includes protecting it against potential claims.

What happens if claims are made after distribution?

If claims are made after assets have been distributed:

The estate remains liable until the 12-month period expires
Beneficiaries may need to return distributions to satisfy valid claims
Executors may be personally liable if they distributed knowing of potential claims

Can the six-month period be extended?

The six-month waiting period is a minimum guideline. Executors can extend this period if:

They become aware of potential claims
Estate administration is complex and ongoing
There are other legitimate reasons for delay

Can the court order earlier distribution?

The High Court can issue directions regarding distribution timing. Beneficiaries or executors can apply to the court for such directions if there are compelling reasons to distribute early or uncertainty about the proper approach.

Legal Advice for the Six-Month Rule

When navigating the six-month rule, professional legal advice is valuable for:

Assessing the risk of potential claims
Determining if early distributions are appropriate
Drafting indemnities and releases from beneficiaries
Responding to pressure from beneficiaries
Managing complex family dynamics

Remember that all probate applications in New Zealand must be filed with the Probate Registry at the Wellington High Court, with a current filing fee of $269 (though fee waivers may be available for those who qualify).

Need Guidance on Estate Distribution Timing?

At Simply Probate, we understand that waiting periods can be frustrating for beneficiaries and challenging for executors. Our experienced team can help you navigate this aspect of probate with confidence, ensuring you make appropriate decisions about distribution timing.

*This information is current as of May 2025 but is subject to change as laws and court practices evolve. For the most current advice on the six-month rule, please consult with a legal professional.*Month Rule in New Zealand?