Administering a deceased estate in New Zealand: bank accounts, shares and other assets
Administering a deceased estate means an executor or administrator identifying, valuing and collecting every asset the deceased held, then paying debts before distributing what is left. New Zealand law lets a bank, insurer, employer or other institution pay out an estate worth up to $40,000 directly, without any grant of probate, under section 65 of the Administration Act 1969 (New Zealand Legislation, retrieved 9 September 2026), though each institution decides for itself whether to use that option.
This page covers what happens to assets once someone has died. Our companion guide to debts when someone dies in NZ covers the other side of the ledger, what the estate owes rather than what it holds, probate in NZ covers the court process itself, and dying without a will in NZ covers who ultimately receives these assets if there is no will.
The small-estates threshold
The $40,000 figure replaced a $15,000 threshold that had stood since 2009, under the Administration (Prescribed Amounts) Amendment Regulations 2025, effective 24 September 2025. It applies per institution, not per estate, so an estate spread across several institutions can access this route with each of them separately.
The table below sets out how the threshold applies to different kinds of holders.
| Holder | What it can do | Source |
|---|---|---|
| Bank | Pay out an account balance up to $40,000 without probate | Administration Act 1969, s65(2) |
| Life insurer | Pay a death benefit up to $40,000 without probate | Administration Act 1969, s65(5) |
| Superannuation fund | Pay a member's balance up to $40,000 without probate | Administration Act 1969, s65(2) |
| Employer | Pay wages or entitlements up to $40,000 without probate | Administration Act 1969, s65(2) |
| Local authority | Pay amounts owed up to $40,000 without probate | Administration Act 1969, s65(2) |
(New Zealand Legislation, Administration Act 1969, s65, retrieved 9 September 2026.)
Do you need probate to access a deceased person's bank account?
Not always. If the balance held at that bank is under the $40,000 prescribed amount, the bank may agree to pay it directly to the surviving spouse or partner, a beneficiary, or another appropriate person without any grant of probate, under section 65 of the Administration Act 1969 (New Zealand Legislation, retrieved 9 September 2026). Whether the bank actually uses this option is its own decision, not an automatic entitlement, and a bank can still insist on probate regardless of the amount.
Can an executor withdraw money from a deceased bank account?
Once probate or letters of administration are granted, yes, the bank will generally release the funds directly to the executor's estate account, since that document proves the executor's legal authority (New Zealand Legislation; Ministry of Justice, retrieved 9 September 2026). Before probate is granted, an executor can only access funds if the bank agrees to release them under the section 65 small-estates provision because the balance is under $40,000.
Can I choose not to use the section 65 small-estates option?
Yes, and an institution can too. Section 65 gives the holder discretion to pay out without a grant of administration; it does not force them to, and either the executor or the institution can instead require probate or letters of administration to be obtained in the ordinary way, even for a balance under $40,000 (New Zealand Legislation, retrieved 9 September 2026). Some institutions apply the option readily, and others prefer probate regardless of the amount, so it is worth asking each holder directly rather than assuming.
What if the estate's assets are spread across several institutions?
The $40,000 threshold applies separately to each institution, not to the estate as a whole, so an estate with $30,000 at one bank and $25,000 at a second institution could potentially avoid probate at both, even though the combined total is over $40,000 (New Zealand Legislation, s65, retrieved 9 September 2026). This only works if every relevant holder agrees to use the small-estates option; a single larger asset, such as a house held solely in the deceased's name, will usually still require probate regardless of what other institutions do.
Shares and investments
Shares held on a New Zealand share registry, principally Computershare and MUFG/Link Market Services, follow their own process, separate from bank accounts. Where the deceased died without a will, a small shareholding can also skip probate: Computershare's own Intestacy Request and Indemnity form replaces the requirement for probate where the paid-up value of the securityholding is under $15,000 (Computershare, Intestacy Request and Indemnity, retrieved 9 September 2026).
What happens to shares and investments when someone dies in NZ?
Shares registered in the deceased's name must be transferred into the name of the estate before they can be sold or transferred to a beneficiary, using an Estates Transfer Form once probate or letters of administration have been granted (Computershare, Estates Transfer Form, retrieved 9 September 2026). Named NZX brokers also note that both New Zealand share registries charge a noting fee of roughly $95 to register an estate's shareholding before it can be made available for sale (Ellis Bros, Estate Share Sales, retrieved 9 September 2026).
Do you need probate to sell inherited shares?
Generally yes, once the paid-up value is above the $15,000 intestacy indemnity threshold that Computershare applies, or wherever a valid will exists, since a share registry needs proof of who is legally authorised to instruct a transfer or sale (Computershare, retrieved 9 September 2026). Only Executors, or a lawyer acting for the estate, can normally give instructions to sell shares held in an estate's name.
Real estate and joint ownership
How a house passes depends entirely on how it was legally owned, which is a separate question from what the will says.
The table below sets out the two main forms of co-ownership and what happens to each on death.
| Form of ownership | What happens on death |
|---|---|
| Joint tenancy | The surviving owner or owners automatically get the deceased's share by the right of survivorship; it does not pass under the will |
| Tenancy in common | The deceased's share passes under the will, or under intestacy rules if there is none, and is administered as part of the estate |
| Sole ownership | The whole property passes under the will or intestacy rules, as part of the estate |
(Land Information New Zealand, Transfer creating a joint tenancy, retrieved 9 September 2026.)
Do you need probate to access a jointly owned house?
Usually not to transfer ownership, if the property was held as joint tenants, since the surviving owner already automatically owns the whole property by survivorship the moment the other owner dies. Registering the change on the title still requires a transmission instrument under section 87 of the Land Transfer Act 2017, but that process does not depend on a grant of probate the way a tenancy-in-common or sole-owner property does (LINZ, retrieved 9 September 2026).
Other institutions and beneficiaries
What documents does an executor need to deal with each institution?
Most institutions ask for a copy of the death certificate, proof of identity for the person contacting them, and either the original will and a grant of probate, or, where a small-estates option applies, a statutory declaration or indemnity form specific to that institution (Public Trust; Computershare; Banking Ombudsman Scheme; retrieved 9 September 2026). Requirements vary by institution, so confirming the specific documents each one wants before applying saves time.
Can a beneficiary access estate assets directly, without going through the executor?
No. Legal title to estate assets passes to the executor or administrator once probate or letters of administration are granted, and a beneficiary's right is to receive their share once the executor has paid debts and completed administration, not to deal with banks, share registries or the land title directly (New Zealand Legislation; general succession law, retrieved 9 September 2026). A beneficiary who wants information about progress should ask the executor rather than approach the institution holding the asset.
Identifying and collecting every asset
An executor's first practical task is building a complete list of what the deceased owned, since nothing can be distributed, and probate cannot even be properly applied for, until the estate's assets are known. Common categories include bank and term deposit accounts, shares and managed funds, life insurance, real estate, vehicles, and personal property of value. A KiwiSaver balance has no nominated death beneficiary and is instead paid to the estate, following the small-estates threshold above (Inland Revenue, retrieved 9 September 2026).
Do bank accounts get frozen when someone dies?
Yes, a bank will freeze a deceased customer's individual accounts, including transactional accounts, term deposits, credit cards and loans, as soon as it is notified of the death, though a joint account is usually transferred into the surviving account holder's name and remains accessible (Banking Ombudsman Scheme, Deceased customers' accounts, retrieved 9 September 2026). Banks will not automatically know a customer has died, so notifying them is a step someone has to take, usually the next of kin or an estate representative.
What happens to a life insurance policy while the estate is being administered?
It depends entirely on ownership and beneficiary nomination, which is a separate question from the rest of the estate: a policy with a named beneficiary generally pays that person directly, often without waiting for probate, while a policy with no nomination, or one owned by the deceased on their own life with no other owner, typically pays into the estate and follows the will (insurer claims guidance, retrieved 9 September 2026). See who gets your life insurance payout in NZ for how this differs across insurers.
Why is it important to notify the bank as soon as possible after a death?
Because a bank cannot act on a deceased customer's accounts correctly until it knows, and because notifying early avoids money being spent from an account without proper authority, which can create complications for whoever is later confirmed as executor or administrator (Banking Ombudsman Scheme, retrieved 9 September 2026). The bank will typically ask for identification from whoever notifies it, along with a copy of the death certificate, before it will discuss the accounts at all.
Where this fits in the wider estate process
Identifying and collecting assets sits between two other steps this cluster covers in full. Before assets can be distributed, an executor also needs to work out what the estate owes: see debts when someone dies in NZ for how secured and unsecured creditors rank. And whether probate is needed at all depends on the size and type of the assets identified here; see probate in NZ for the full $40,000 threshold explanation and the court process itself, and how long probate takes in NZ for the timeline once an application is filed.
If there is no will, the fixed shares under intestacy decide who ultimately receives these assets; see dying without a will in NZ, and if the estate involves a partner, our guide to the Property (Relationships) Act in NZ covers how that separately affects entitlement. If you are the executor and have not yet made your own will, or want a professional to hold a family trust or manage a complex estate for you, our guides to making a will in NZ, Public Trust wills in NZ, power of attorney in NZ and family trusts in NZ cover those options, and QuoteHub's own free will service is a no-cost starting point. For the practical order of everything else that has to happen after a death, our when someone dies checklist and executor of a will in NZ guide cover the full picture.
If the estate you are administering includes a life insurance, income protection or trauma cover policy, a licensed financial adviser, or your nearest insurance adviser, can help the beneficiary or the estate understand how a claim works; see how a life insurance payout works after death and how to claim life insurance in New Zealand. Financial advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). QuoteHub is a trading name.
Adviser's view
The mistake QuoteHub sees most often is an executor assuming every asset works the same way. A bank account, a share portfolio, a jointly owned house and a life insurance policy all pass to the right person through completely different legal routes, some needing probate, some needing nothing more than a form, and some bypassing the estate entirely.
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Cite this page QuoteHub NZ (2026). Administering a Deceased Estate NZ: Assets, Accounts. www.quotehub.co.nz/guides/estate/deceased-estate-assets-nz. Updated 2026-09-09.
References
- Administration Act 1969, s65 (Payment without administration)
- Administration (Prescribed Amounts) Amendment Regulations 2025
- Computershare: Intestacy Request and Indemnity
- Computershare: Estates Transfer Form
- Ellis Bros: Estate Share Sales
- Land Information New Zealand: Transfer creating a joint tenancy
- Land Information New Zealand: Transmission instruments
- Inland Revenue: I'm looking after the affairs of someone who has died
- Banking Ombudsman Scheme: Deceased customers' accounts
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