New Zealand Legal Guide
Probate, Executors, Debts & Taxes in New Zealand
This page explains the core legal and practical steps after a death in Aotearoa New Zealand: what an estate is, what an executor or administrator does, when probate or letters of administration may be needed (High Court), how debts are handled, how jointly-held assets work, and what tax responsibilities can still apply (even though New Zealand has no inheritance tax). It also covers finding a will, dying without a will (intestacy), disputes, relationship property on death, KiwiSaver, and planning ahead.
Quick legal summary (New Zealand)
In New Zealand, a person’s estate (everything they owned and owed) must be identified and valued. The executor (named in a will) or an administrator (appointed if there is no will) pays funeral/estate costs, debts, and any tax due from estate assets first. Only after that can the remaining estate be distributed to the people entitled to inherit. Probate or letters of administration from the High Court may be required before banks, investments, property, or providers will release or transfer certain assets. The Inland Revenue Department (IRD) may also need to be notified.
Probate and will records information is available via the Ministry of Justice / High Court guidance, and govt.nz provides a plain-English overview of wills, probate and estates.
Key terms
Clear definitions to help you understand estate administration in New Zealand.
Estate: everything the person owned and owed at the time of death. This can include bank accounts, investments, KiwiSaver, property, vehicles, valuables, and personal possessions, as well as liabilities such as loans and credit cards.
Executor: the person named in a will to manage the estate and distribute it to beneficiaries.
Administrator: the person appointed (usually by the High Court) to manage the estate if there is no will, or if no executor can or will act.
Probate: the High Court order confirming the will is valid and giving the executor authority to administer the estate.
Letters of administration: the High Court order appointing an administrator when there is no will (intestacy) or no acting executor.
Executors & administrators
Who manages the estate, what they must do, and what to do if you can’t (or don’t want to) act.
In New Zealand, an executor or administrator is responsible for collecting and protecting estate assets, paying debts and taxes, and distributing what remains to the right people.
Common responsibilities
If you don’t want to act
If you are named as executor but cannot or do not want to act, you may be able to step aside (how this is done depends on the stage of the administration and whether you have already started acting). If the estate is complex, disputed, or appears insolvent (debts exceed assets), it is often safer to get legal advice early.
What counts as the estate?
What the estate can include, and what must be dealt with before inheritance is distributed.
The estate can include
Debts, costs and tax are handled first
Executors/administrators generally pay the estate’s legitimate debts and administration costs (and any tax due) from the estate before distributing anything to beneficiaries.
Registering the death & getting death certificates
Why registration matters and when you may need certificates.
If you use a funeral director, they will usually register the death with Births, Deaths and Marriages. If you’re arranging a burial or cremation yourself, there are timeframes and steps to register the death directly.
Many organisations (banks, insurers, courts) require death certificates or certified copies as part of estate administration.
Notifying organisations in New Zealand
A practical checklist of who may need to be told after a death.
Who you notify depends on the person’s circumstances. Some organisations will freeze accounts until the executor/administrator can show authority. It’s common to notify key providers early, even while you are still gathering documents.
Common organisations to notify
Government & official agencies (common examples)
What happens to debt when someone dies in New Zealand?
How debts are paid, when family is responsible, and what happens if the estate can’t pay.
Who pays the debt?
Debts are normally paid from the estate. Family members are not usually required to pay the deceased person’s debts from their own money unless they are also legally responsible (for example, a joint debt or a guarantee).
If the estate cannot pay (insolvent estate)
If the estate’s value cannot cover all debts and costs, special care is needed. Distributing assets before debts and tax are dealt with can create personal risk for the executor/administrator. Get professional advice if insolvency is possible.
Joint debts and shared bills
Joint bank accounts & joint-owned property
What usually happens when assets are held jointly, and when court authority may still be needed.
Joint bank accounts
Some joint accounts are operated on a “survivorship” basis, where the surviving account holder can continue using the account once the bank has the required documents. Banks still often require paperwork (and may limit withdrawals) until they are satisfied.
Joint-owned property
Property can be owned in different ways. What happens on death depends on the ownership structure (for example, whether there is a survivorship mechanism or whether a share forms part of the estate). If a property share forms part of the estate, probate or letters of administration is often required.
Relationship property when a partner dies
How relationship property rules can affect what can be gifted in a will, and what the survivor can claim.
If the person who died had a spouse, civil union partner, or de facto partner, relationship property rules can be relevant. In many cases, a person cannot give away their partner’s share of relationship property in their will.
Why this matters
Property, mortgages & selling an inherited home
What happens if a property is inherited with an outstanding mortgage.
If an inherited property has a mortgage, the lender will generally expect the loan to be maintained, refinanced, or repaid. Options depend on the lender, the estate’s finances, and who is inheriting.
If the beneficiary wants to sell
If the property is sold, the mortgage is typically repaid from the sale proceeds. If there is mortgage protection insurance, it may help cover the outstanding balance depending on the policy.
Small or low-value estates
When you may be able to access funds without probate or letters of administration.
Some institutions may release small balances without probate or letters of administration, but thresholds and requirements vary by provider. Ask each bank/provider what they need.
Even when a grant is usually required, some providers may release money directly to pay certain expenses (for example, funeral invoices) depending on policy and documentation.
Probate & letters of administration in New Zealand
What they are, when they’re needed, and what happens next.
When probate is used
Probate is typically used when there is a will and you are the executor, and a court order is needed to deal with assets. Letters of administration are generally used when there is no will (intestacy), or where the executor cannot or will not act.
What happens after a grant is issued
Taxes after death in New Zealand
NZ has no inheritance tax, but estates can still have tax responsibilities.
No inheritance tax / estate duty
New Zealand does not have inheritance tax, and estate duty was abolished for deaths on or after 17 December 1992.
But IRD still matters
Even without inheritance tax, there can still be income tax responsibilities for the final period of the person’s life and for estate income after death. IRD guidance explains what happens with refunds/amounts owing and related obligations, and notes that KiwiSaver funds held by IRD are transferred to the estate and the provider is notified.
Tax outcomes depend on the person’s situation and the estate. If there are rentals, businesses, overseas assets, or complex investments, consider professional advice.
How to find a loved one’s will
Where wills are commonly kept and what to check first.
If there is no will (intestacy) in New Zealand
What intestacy means, who may inherit, and why it can get complicated.
If someone dies without a valid will, the estate is distributed under New Zealand’s intestacy rules. The order of inheritance depends on family relationships and can become complex with de facto relationships, blended families, or uncertain paternity.
Common issues when there is no will
Disputes & challenging a will
Common reasons disputes arise and what to do first.
Most estates are distributed without dispute, but disagreements happen—especially with blended families, unclear promises, or concerns about capacity or pressure.
Practical first steps
Do you need a lawyer? When professional help is worth it
DIY can work for straightforward estates, but some situations are higher-risk.
A straightforward estate with a clear will and cooperative family can sometimes be handled without a lawyer. Professional help is often worthwhile if there are complex assets, disputes, or partner claims.
Situations that are often complex
Legal fees for estate work are typically paid from estate funds, but an executor/administrator may sometimes pay upfront and be reimbursed later depending on access and timing.
What happens to pets when someone dies?
How to plan for pet care and what options exist if family can’t take them.
Pet care is not automatic. Even if someone hopes a friend or relative will take a pet, it’s best to discuss this in advance and record wishes clearly.
Practical steps
Planning ahead
Small steps that can make estate administration much easier.
Cultural practices differ across families and communities. Many whānau observe tikanga and tangihanga practices—planning and clear communication can reduce stress at a difficult time.
Digital legacy: accounts, photos, subscriptions and crypto
What digital assets can include and practical steps to help your executor.
A digital legacy can include email accounts, social media, photo/video libraries, online subscriptions, cloud storage, reward points, and cryptocurrencies. Providers often have strict rules about access, even for executors.
Practical steps
Frequently asked questions (New Zealand)
Do family members inherit debt in New Zealand?
Usually no. Debts are normally paid from the estate. A family member may be responsible only if they are legally tied to the debt (for example, a joint debt or a guarantee).
Does New Zealand have inheritance tax?
New Zealand does not have inheritance tax, and estate duty was abolished for deaths on or after 17 December 1992. Estates can still have tax responsibilities (for example, income tax), so IRD may need to be notified.
When is probate (or letters of administration) required?
It’s often required when asset holders (banks, investment providers, property transfers) need court authority before releasing or transferring assets. Some providers may release small amounts without a grant, depending on their policies.
Who registers the death in New Zealand?
If you use a funeral director, they usually register the death with Births, Deaths and Marriages. If you do not use a funeral director, you may need to register the death yourself and follow the required timeframes.
Can Work and Income help with funeral costs?
Work and Income may be able to help with funeral costs in some circumstances. Eligibility and amounts depend on the situation and available assets, and the grant is intended to contribute to reasonable funeral expenses (including kai for a tangihanga).
Legal notice
This page provides general legal information for New Zealand and does not constitute legal advice. Laws and outcomes depend on individual circumstances. If you are unsure, dealing with a complex estate, or facing a dispute, consider speaking with a qualified New Zealand professional.