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If a person has not a left a will, then they die "intestate". This means that the deceased’s estate must be dealt with in accordance with the Administration Act 1969 (Act) which sets out how the deceased’s assets are distributed and to whom, depending on the deceased’s circumstances as follows:

If the deceased leaves a spouse/partner but no children or parents: The spouse/partner receives all personal chattels and the entire estate.

If the deceased leaves a spouse/partner and children: The spouse/partner receives all personal chattels, the sum of $155,000.00 (plus interest from date of death to the date the money is distributed to the spouse/partner) and one-third of the remaining estate. The children inherit the remaining two-thirds.

If the deceased leaves a spouse/partner but no children, and has surviving parents: The spouse/partner receives all personal chattels, the sum of $155,000.00 (plus interest as set out above) and two-thirds of any remaining assets. The parents inherit the remaining one-third.

If the deceased leaves children but no spouse/partner: The children inherit the entire estate in equal shares.

If the deceased leaves no spouse/partner or children: The estate passes to the deceased’s parents. If no parents are alive, it goes to siblings, then grandparents, then uncles and aunts.

If the deceased’s assets for each class of asset are worth less than $15,000.00, the deceased’s next of kin can administer the estate (in accordance with the Act) without needing to apply for Letters of Administration. If, however the value of an asset class (such as Kiwisaver or funds in held with a financial institution – which includes fractional share ownership platforms such as Sharesies, Hatch or Kernel) is more than $15,000.00, then Letters of Administration must be applied for to distribute the assets.

How do you apply for Letters of Administration? There are several actions that must be taken to meet the requirements for grant of Letters of Administration. The applicant needs to prove:

A. A will has been searched and advertised for;

B. The appropriate family member is applying to be Administrator and has support of all other family members at the same level of kinship (for example, the deceased’s children must all agree that one of them is approved to act by all of the remaining children);

C. The relationship between the deceased and the persons who are the beneficiaries under the intestacy rules set out in the Act; and

D. All of the deceased’s children have been accounted for.

Once the application has been prepared and compiled with all supporting documentation, the application is filed at the High Court and the court filing fee is paid. The High Court Probate Unit will review the application and either approve and grant Letters of Administration, or decline and explain what is missing from the application. 

Letters of Administration can be a very costly and time-consuming process, and your assets may not be given to the people you would like them to go to, as the Act prescribes a formulaic approach to the administration of your estate. If you wish for your assets to be left to your beneficiaries in a way that is different to the default rules set out in the Act, you should ensure you have a legally valid will in place, which should be reviewed when major life events occur to ensure the contents of your will stay current.

Having a will is one of the most important things you can do to protect your loved ones and ensure your wishes are honoured after you pass away. Here’s why creating a will is crucial:

Control Over Asset Distribution: Without a will, New Zealand’s intestacy laws decide who inherits your estate. A will lets you choose exactly who gets what (subject to certain duties you may owe to certain people) whether it’s family, friends, charities, or specific causes you care about.

Protect Your Loved Ones: If you have children, a will allows you to nominate guardians, authorising someone you trust to make major decision for how your children are raised in the event you cannot do so. It also helps provide for dependents, ensuring they receive financial support.

Avoid Legal Complications: Dying without a will can lead to delays, disputes, and costly legal fees for your family. A will makes the process smoother and less stressful, reducing the likelihood of disagreements over your estate.

Choose Your Executor: An executor is responsible for managing your estate. By naming an executor in your will, you ensure someone you trust is in charge, rather than leaving it up to the default rules set out in the Act.

Support Charitable Causes: If you want to leave a legacy to a charity or cause close to your heart, a will ensures your contribution is made as intended.

Reduce Stress for Family: Losing a loved one is difficult enough without the added burden of navigating an unclear estate. A will gives clarity and certainty, making it easier for your family to handle practical matters.

Prevent Unintended Consequences: Without a will, your estate could be divided in a way that doesn’t align with your wishes, even excluding important people in your life.

Writing a will is not just for the elderly or wealthy—it’s a responsible step for anyone who wants to protect and provide for their loved ones.