What Happens If You Die Without a Will in New Zealand?

It is a common misconception that if you pass away without a will, all your assets automatically go to your spouse or partner. In reality, the legal process is far more rigid.

Dying without a valid will is known as dying “intestate”. When this happens, you lose the power to decide who inherits your life’s work. Instead, your estate is distributed according to a strict legal formula set out in the Administration Act 1969.

For families already dealing with grief, navigating an intestate estate can be a lengthy, stressful, and expensive experience. Here is exactly what happens to your assets, your family, and your estate if you pass away without a will in New Zealand.

The Legal Formula: Who Gets What?

Under the Administration Act, the government essentially writes a will for you based on a fixed hierarchy of relationships. The rules do not take into account your personal wishes, promises you made while alive, or the unique dynamics of your family.

Here is how your assets are divided based on who survives you:

If you have a spouse or partner, but no children and no parents: Your spouse or partner inherits your entire estate.
If you have a spouse or partner and children: Your spouse receives all personal chattels (furniture, vehicles, personal items), a prescribed amount set by law (currently $155,000), and one-third of anything remaining. Your children share the remaining two-thirds equally.
If you have a spouse or partner and parents, but no children: Your spouse receives all personal chattels, the first $155,000, and two-thirds of the remaining estate. Your parents receive the final one-third.
If you have children, but no spouse or partner: Your entire estate is divided equally among your children.
If you have no spouse, no children, and no parents: The estate moves down the family tree to siblings, then grandparents, and then aunts and uncles.
If no relatives can be found: Your entire estate passes to the Crown.

The Blended Family Complication

It is vital to note that the Administration Act does not cater well to modern, blended families. Stepchildren do not automatically inherit anything under these intestacy rules unless they have been formally adopted. If you want to provide for stepchildren, friends, or charities, a formal will is the only way to guarantee it.

The Process: Letters of Administration

When you have a will, your chosen executor applies for “Probate” to carry out your wishes. When you die without a will, a family member must apply to the High Court for “Letters of Administration” before they can touch your assets.

This process comes with several hurdles:

Cost and Delays: Applying for Letters of Administration is generally more complex, time-consuming, and expensive than obtaining Probate. Family members must be tracked down, and consents must be gathered from everyone entitled to be an administrator.
Loss of Control: You do not get to choose who manages your estate. The court appoints an administrator based on a priority list, which might be someone you would never have chosen for the job.
Guardianship: If you have young children, dying without a will means you have not legally appointed a testamentary guardian for them. The courts will have to decide who cares for your children.

The Small Estates Exception

There is one small exception to the formal court process. A recent legislative update (effective 24 September 2025) increased the small estates threshold in New Zealand.

If your financial assets at a single institution (like a bank or KiwiSaver provider) are under $40,000, those specific funds can sometimes be released to your next of kin without requiring formal Letters of Administration. However, if you own property, or if your funds exceed this $40,000 threshold at any single institution, the formal and costly court process is completely unavoidable.

Take Control of Your Legacy

The intestacy rules are a safety net, but they are rarely a perfect fit. Relying on the Administration Act often leaves spouses underfunded, stepchildren excluded, and families tangled in legal bureaucracy.

Having a valid, up-to-date will is one of the kindest things you can do for your loved ones. It removes the guesswork, minimises legal fees, and ensures your legacy is passed on exactly as you intended.

Ready to secure your family’s future? The experienced estate planning team at Senior Law Nelson is here to help you draft a will that protects what matters most. Contact us today to arrange a consultation.