Public Trust says today’s announcement that probate thresholds are rising to $40,000 on 24 September will be welcome news for New Zealand families – and says the change does not alter the essential need for every New Zealander to have a will.

Chief Executive Glenys Talivai says:

“When it comes to estate administration, we know that New Zealand families just want to do the right thing. Many people feel a weight of responsibility when it comes to sorting out their loved one’s affairs and they don’t want to make a mistake.

“By lifting the threshold to adjust for inflation, many families will avoid the need to go through the formal probate process to validate a will for smaller estates, saving time, money and effort. As well as reducing the administrative burden on families, it will free up the Court’s valuable time.

“Even with the threshold rising, every New Zealander should have a will. Our experience tells us that regardless of the value of your assets, leaving behind clear wishes is one of the greatest gifts you can give your loved ones. And with the average KiwiSaver balance being $37,079, many people may have more assets than they realise.

“A will is the best way to help ensure the things that matter go to the people that matter. It provides clarity about your wishes for your assets and other special items, and it’s how you can appoint someone you trust to help take care of your kids when you’re no longer around.

“Public Trust has been advocating for an increase to the threshold for some time, and we’re pleased to see it moving forward.”

What is probate?

Probate is part of the estate administration process and involves an application to the High Court for a will to be recognised and approved legally. It gives someone the authority to administer an estate – paying bills, closing accounts, and distributing assets. Obtaining probate can take up to couple of months.

Currently, probate is required if someone dies with more than $15,000 in assets in their sole name. With the changes coming to effect on 24 September, this will now be required for estates with more than $40,000 in assets.

© Scoop Media