When is probate not required?

The short answer

Probate is not always required. It depends on the value and type of the assets, and on the rules of each bank or organisation holding them. Small estates, jointly owned property, and assets with nominated beneficiaries can often be dealt with without a grant of probate. But “not required” is decided asset by asset — and each organisation sets its own thresholds.

When probate is typically not required

Common situations where probate may not be needed include:

• small estates — where the estate is worth less than around $40,000, banks may release funds under section 65 of the Administration Act 1969, subject to their own checks;
• small bank balances — many banks release modest amounts with simpler paperwork, below their individual limits;
• jointly owned property — assets held as joint tenants pass automatically to the surviving owner by survivorship;
• insurance and superannuation with a beneficiary nomination — these are often paid directly to the nominated person, outside the estate;
• KiwiSaver and other schemes — paid out according to the scheme’s own rules, which may not require probate for smaller amounts;
• assets held in a trust or by other ownership arrangements — these pass under the trust or arrangement, not the will; and
• personal possessions of modest value — usually collected and distributed by the executor without formal authority.

The catch

A few important caveats:

• each bank and organisation has its own thresholds and requirements — what one bank releases without probate, another may not;
• releasing small amounts still usually requires a death certificate and proof of who should receive the money;
• even when individual assets do not need probate, the executor still needs to collect and distribute the estate properly; and
• an estate may be “small” in one asset but still require probate for another — such as a house or significant holdings.

How to find out

The reliable way to know is to ask each organisation directly: banks, share registries, insurance companies and KiwiSaver providers each publish or explain what they require for a deceased customer. If the estate is simple and small, this is often straightforward. If assets are significant or the situation is unclear, legal advice will save time and mistakes.

Why probate is still often worth it

Even when probate is not strictly required, obtaining it can still be sensible:

• it gives the executor clear authority to deal with every asset at once;
• it avoids repeated paperwork and queries from different organisations;
• it provides certainty for banks, beneficiaries and anyone dealing with the estate; and
• it protects the executor if there are questions later about whether distributions were authorised.

The bottom line

Probate is not needed for every estate — small estates, joint assets and nominated beneficiaries can often be handled without it. But the rules vary by asset and by organisation, so check each one, and consider probate when it simplifies the job. Our guide on probate and guide on bank accounts after death cover the surrounding detail.