Justice Minister Paul Goldsmith says updating the probate threshold will save families time and money. Photo / Mark Mitchell
Justice Minister Paul Goldsmith says updating the probate threshold will save families time and money. Photo / Mark Mitchell
The Government is reducing the cost and hassle associated with wrapping up the financial affairs of those who die with few assets.
It has agreed to increase the probate threshold from $15,000 to $40,000 from September 24.
This means an executor of an estate worth less than $40,000 won’t needto apply to the High Court to be authorised to manage and distribute the estate in accordance with their loved one’s will. They can fulfil the wishes of the will without going through the court process.
Justice Minister Paul Goldsmith said updating the probate threshold would save families time and money.
“The threshold was last set in 2009, before the implementation of KiwiSaver.” Goldsmith said.
“Most estates now include KiwiSaver balances well over $15,000, but still have to go through the High Court process. This results in a significant proportion of smaller estates being eaten up in court costs and legal fees.
“Executors need to be able to distribute lower-value assets, ensuring more of an estate goes to the beneficiaries, helping grieving families. The last thing they need is a costly legal process with extra paperwork to deal with.
“I’m assured $40,000 is still sufficiently low enough to ensure there are still appropriate safeguards through the oversight of the High Court for higher-value assets, to ensure against potential dishonesty, fraud or the deceased person’s wishes not being followed.
“The ministry undertook targeted consultation with key stakeholders, including the law profession and financial services industry to gain feedback on an appropriate threshold level.”
Jenée Tibshraeny is the Herald’s Wellington business editor, based in the parliamentary press gallery. She specialises in government and Reserve Bank policymaking, economics and banking.
