Financial and legal steps after someone dies in New Zealand

Notify the bank as soon as you can

One of the first things to attend to is letting your loved one's bank know they have died.

When a bank is informed of a death, it will freeze the individual accounts — including any transactional accounts, term deposits, credit cards and loans. This can feel abrupt, but it is there to protect the estate.

It is worth knowing that using your loved one's EFTPOS or credit card after their death — even with good intentions, like paying for the funeral — can constitute fraud. Notify the bank first, before using any of their accounts or cards.

Most banks have a dedicated bereavement team. Most New Zealand banks understand the need to pay funeral costs and may release funds specifically for this purpose, typically requiring the funeral director's invoice.

A helpful tool is myTrove — a free, secure service that lets you notify multiple organisations such as insurers, utility providers and banks of a death through a single online form, and connects directly to official New Zealand government death records, so there's no need to provide a physical death certificate. IRD also accepts death notifications through MyTrove.

Understanding probate and the estate threshold

You may have heard the word "probate" and wondered whether it applies. Probate is the High Court process that formally confirms a will and gives the executor legal authority to act. Whether you need it depends on what your loved one owned, and where.

From 24 September 2025, the threshold for releasing a person's funds without probate increased from $15,000 to $40,000. This means banks, KiwiSaver providers and other financial institutions can now release funds held in your loved one's sole name — up to $40,000 per institution — without requiring a formal grant of probate or letters of administration. The threshold is assessed per institution, so an account under $40,000 at one bank and another under $40,000 at a second bank can often each be released without going to court.

There are some important exceptions worth knowing, because they catch many families out:

Land and property have no threshold at all. If your loved one owned a house or land in their sole name, probate must be obtained to deal with it — regardless of its value, and regardless of how small the rest of the estate is.

Shares and government bonds keep the older $15,000 threshold. The new $40,000 limit does not apply to these — if your loved one held more than $15,000 in shares or bonds, probate will still be required for those assets.

For everything else — bank balances, KiwiSaver, life insurance held in their own name — the $40,000 per-institution threshold applies. If assets at any single institution exceed it, probate will likely be required. If there was no will, the process involves applying for letters of administration instead. Talking with a lawyer or an organisation like Public Trust can help you work out the right path for your situation.

KiwiSaver: what happens to their balance

When someone dies, their KiwiSaver funds become part of their estate, along with any other assets they had. It is not possible to nominate people to receive KiwiSaver funds directly from a provider.

For balances under $40,000, providers can now release funds more simply. You will need to complete an estate withdrawal application form and take it to a Justice of the Peace, solicitor, notary public or another person authorised to complete the statutory declaration section. For larger balances, probate or letters of administration will generally be required first.

You should contact the KiwiSaver scheme provider directly to begin the process. If your loved one had a student loan, IRD will write this off once they are notified of the death.

Tax and IRD obligations

It can feel strange to think about tax at a time like this, but settling your loved one's tax affairs is part of closing things out properly and cleanly.

In most cases a final income tax return needs to be filed for the person who has died, using their individual IRD number, covering the period from 1 April in the tax year they died through to their date of death. Importantly, there is no death duty or inheritance tax in New Zealand — these were abolished in 1993. The estate may owe income tax on earnings up to the date of death, but there is no tax simply on the act of inheriting.

If the estate earns income after the death — for example from rental property or investments — a separate tax return needs to be filed for the estate, which is treated as a different entity from the individual and requires a new IRD number. An accountant or trustee company such as Perpetual Guardian can help manage this if it feels complex.

Life insurance and other policies

No two estates look alike, and tracking down every policy your loved one held can take time. Check through their personal papers, email accounts, and any files they kept. If you are wondering whether they held life or funeral insurance, look through their belongings for documents — they may have left a list of assets and who they banked or insured with.

Life insurance policies generally pay out directly to named beneficiaries, outside the estate altogether, which means the money does not need to go through probate. Contact the insurer directly with a death certificate and they will guide you through their claims process.

Financial support that may be available to you

There are two government grants worth knowing about when it comes to funeral costs.

Work and Income offers a Funeral Grant. You do not have to be on a benefit to qualify, and you do not have to pay the money back. Work and Income may pay up to $2,697.43 if the estate of the person who has died cannot cover the costs. The grant is income and asset tested, so eligibility depends on your circumstances and the size of the estate. Always verify the current amount directly with Work and Income, as figures are adjusted over time.

If the death was the result of an injury covered by ACC, ACC can pay a funeral grant of up to $7,990.30 towards funeral and memorial costs. This amount changes every year, and ACC will base the amount on the date your loved one passed away. ACC support is based on the injury, not your income. In addition to the funeral grant, eligible partners, children and dependants may also receive a one-off survivor's grant and ongoing weekly compensation.

There is no time limit for applying to ACC, so do not feel pressured to rush that application.

When there is no will

Dying without a will is called dying intestate. Without a valid will, the court must appoint administrators to handle the estate, which takes longer and costs more than probate with a will, and may not distribute assets the way your loved one would have wanted.

If someone dies without a will, the estate does not pass to the government or Public Trust — that is a common myth. It is distributed according to a legal hierarchy of family relationships. If this is the situation you are in, speaking with a lawyer early will help.

Take it one step at a time

None of this has to be sorted out in a single week. Most of these processes have no urgent deadline beyond notifying the bank and IRD — and the people on the other end of the phone at these organisations deal with bereaved families every day. You do not need to have all the answers before you pick up the phone.

Lean on whatever help is around you — family, a solicitor, a trustee company, your funeral director. The paperwork will get done. Right now, you just have to take the next small step.

Our after someone passes guide can walk you through each of these steps in more detail, at your own pace.

Circumstances vary. Verify specific details directly with the relevant organisation before acting.

Written and reviewed with care by BesideYou.

Sources

• New Zealand Ministry of Justice: Increased probate threshold good news for bereaved families
• Banking Ombudsman Scheme: Deceased customers' accounts
• Work and Income: Funeral Grant
• Work and Income: Bereavement
• ACC: Financial support if someone has died from an injury
• Inland Revenue: I'm looking after the affairs of someone who has died
• Inland Revenue: Let us know someone has died
• Inland Revenue: File a final income tax return for someone who has died