Alternatives to Public Trust NZ for Estate Administration: A Practical Comparison

If Public Trust is named as executor in a New Zealand will — or if a family is considering engaging them to administer an estate — it is worth understanding exactly what the alternatives are and what each costs. Public Trust charges a base setup fee of $6,355, an hourly rate exceeding $307, plus 5% of gross estate income collected. For a straightforward estate, these fees often consume a significant portion of what beneficiaries ultimately receive. The practical alternatives range from private law firms ($2,000–$5,000 retainer) to boutique probate services ($759 fixed fee for the High Court step only) to DIY administration using a structured settlement guide — with the right choice depending on the estate's complexity.

This is not a criticism of Public Trust as an institution. For genuinely complex estates — contested wills, insolvent estates, Māori land, cross-border assets — professional trust company administration provides valuable protection. But for a majority of ordinary New Zealand estates, families have workable, significantly cheaper alternatives.

The Real Cost of Public Trust Administration

Public Trust's fee structure is percentage-based and time-based, which means the cost scales with estate value and duration rather than with actual complexity.

For an estate worth $400,000 that generates $20,000 in rental income during the administration period, the fees would include the $6,355 setup, $1,000 in estate income fees (5% of $20,000), plus all hourly time for correspondence, bank coordination, IRD filings, and beneficiary distributions. It is straightforward to see how a modest estate can lose $12,000–$18,000 or more to administration fees.

The source of Public Trust's market position is structural: they draft a significant number of New Zealand wills through their will preparation service, and those wills often name Public Trust as executor. Families are sometimes unaware that a named executor can be replaced by agreement of the beneficiaries, or that the executor can engage a different solicitor to perform the actual work.

The Main Alternatives: Side-by-Side Comparison

Alternative 1: Private Law Firm for Full Administration

A private solicitor engaged for full estate administration typically charges $2,000 to $5,000 for a straightforward probate — substantially less than Public Trust for the same outcome. Firms like Smith Partners, DK Legal, Pier Law, and Norris Ward McKinnon are active in this space. Hourly rates of $250 to $450 are common; for an estate completed in eight to ten hours of actual legal work, the total can be well below the minimum engagement threshold at trust companies.

The practical advantage of a private firm over Public Trust: the executor maintains more direct control, communication tends to be faster, and the fee is more predictable (especially with fixed-fee offerings). The disadvantage: private solicitors are not institutional executors, so if the will names Public Trust, the family needs to formally replace them or engage the solicitor under Public Trust's oversight — a conversation worth having explicitly.

If the estate is complex — contested, insolvent, or cross-border — a private solicitor with estate specialization provides the same professional accountability as Public Trust at lower cost, provided the solicitor has relevant experience.

Alternative 2: Boutique Probate Service (Kiwilaw)

For families who want to manage the administration themselves but need professional help specifically for the High Court application, boutique probate services like Kiwilaw offer a narrow, transparent service: acquiring the grant of probate (or letters of administration) for a fixed fee around $759.

This covers preparation of the PR1/PR2 forms, sworn affidavit execution, and physical filing at the Wellington High Court Probate Unit. It does not cover asset collection, bank account closure, IRD filings, KiwiSaver retrieval, LINZ Transmission Instruments, or beneficiary distributions. Everything beyond the grant remains the executor's responsibility.

The value proposition: the High Court is the specific bottleneck where non-lawyer executors are most likely to make expensive errors (the court routinely rejects applications for minor formatting errors). Paying $759 to eliminate that risk while managing everything else independently is often the most cost-effective structure for straightforward estates.

Alternative 3: DIY Administration with a Structured Guide

The September 2025 amendment raising the informal administration threshold to $40,000 per institution means that many New Zealand estates — those where no single institution holds more than $40,000 and no real estate is held solely — can now be settled without the High Court at all. For those estates, the executor can manage the entire process using a comprehensive, NZ-specific settlement guide: inventorying assets, applying for funeral grants, notifying agencies via myTrove, closing accounts using Section 65 statutory declarations, filing the final IRD returns, and distributing to beneficiaries.

Even for estates that do require the High Court, the administrative work surrounding the court application — which accounts for the majority of executor time and most of what professional fees pay for — is manageable with a good guide. Engaging a boutique probate service only for the specific court filing step is the hybrid approach that most cost-conscious families find workable.

Alternative 4: Hybrid Approach — Guide Plus Targeted Professional Help

For most straightforward NZ estates, the hybrid approach is the most defensible financially:

1. Use a structured settlement guide for the administrative framework: asset inventory, myTrove notifications, bank account management, KiwiSaver retrieval, IRD filings, beneficiary communication
2. Engage a boutique probate service for the High Court grant if required ($759 fixed fee)
3. Engage a licensed conveyancer for the LINZ Transmission Instrument if real estate is involved ($180 plus professional fees)

Total professional cost for a typical estate: $939 to $1,500, versus $6,355-plus under Public Trust or $2,000–$5,000 under a full-service law firm. The executor's time investment is the real cost — expect 50 to 150 hours for a complete administration. But for a family receiving the estate rather than billing for it, that time has a tangible return.

When Public Trust (or Full-Service Administration) Is Worth the Cost

The alternatives above are appropriate for straightforward estates with a valid will, clear assets, and no family disputes. There are genuine situations where institutional or full-service administration is worth the premium:

• Contested estates: if a Family Protection Act claim has been signalled or filed, the executor faces personal liability risks that professional management mitigates. Public Trust or an experienced estate solicitor provides institutional accountability and documentation that protects against personal liability.
• Insolvent estates: when debts exceed assets, the Insolvency Act priority rules are complex and the consequences of paying the wrong creditors in the wrong order fall on the executor personally. Do not attempt to manage an insolvent estate without professional guidance.
• Complex family dynamics: blended families, de facto relationship disputes, or family members with competing claims benefit from a professional executor who can maintain neutrality.
• High-value estates with multiple asset types: shares, investment properties, overseas assets, and business interests each introduce complexity that justifies professional management.
• Māori freehold land: succession under Te Ture Whenua Māori Act 1993 involves the Māori Land Court and cultural protocols that require specialized professional engagement.

Who This Is For

• Families where the will names Public Trust as executor and they want to understand their options before committing to the fee structure
• Executors weighing whether to delegate fully to a trust company or manage the process with targeted professional help for specific steps
• Beneficiaries of estates that have been handed to Public Trust without their involvement who want to understand whether the fee structure is appropriate for the estate's complexity
• Families with straightforward estates who were told they "need" full professional administration without understanding the $40,000 threshold change that may remove the High Court requirement entirely

Who This Is NOT For

• Families dealing with contested wills, insolvent estates, Māori land succession, or cross-border estates — these genuinely benefit from professional management regardless of cost
• Executors who are not prepared to invest meaningful time in the administration process — DIY administration requires 50 to 150 hours of executor time

Frequently Asked Questions

Can the family remove Public Trust as executor if they are named in the will?

In general, a named executor cannot be unilaterally removed by beneficiaries. However, Public Trust can be renounced or replaced by agreement if all beneficiaries consent and alternative arrangements are made. This requires legal documentation. The relevant options depend on whether the estate administration has already commenced and what the will specifies. This is a question for a solicitor, but it is a legitimate question to ask before accepting the default fee structure.

Is there a way to reduce Public Trust's fees if they must be used?

Yes. Public Trust's hourly fees scale with the time they spend on the estate. Executors who provide organized, complete documentation — a full asset inventory, all death certificates, clear instructions, pre-completed institutional forms — reduce the billable hours directly. Some families have successfully negotiated fee caps or fixed-fee arrangements with Public Trust for straightforward estates. It is worth asking explicitly.

What is the difference between Public Trust acting as executor and acting as administrator?

When Public Trust drafts a will and names themselves as executor, they act in that role from the date of death. When engaged after the fact (e.g., because the named executor has died or refused to act), they act as administrator. The fee structure is similar in both cases. The key difference is whether the engagement was the deceased's choice or a subsequent family decision.

What does Kiwilaw's $759 probate service actually include?

Based on publicly available information, Kiwilaw's fixed-fee service covers preparation of the PR1 Application for Probate (or Letters of Administration), the PR2 Affidavit of Executor, sworn affidavit execution, and filing at the Wellington High Court Probate Unit including the $269 court fee. It does not include asset collection, bank account management, IRD filings, KiwiSaver claims, LINZ Transmission Instruments, or beneficiary distributions. Verify current pricing and scope directly with Kiwilaw as fees may have changed.

Can I use a settlement guide if the estate needs to go through the High Court?

Yes. A structured guide covers the entire administration process including the High Court phase — what forms are required, what documents must be prepared, what the affidavit must contain, and what to do if the application is rejected. Most executors use the guide to prepare everything and then engage a boutique probate service or solicitor to perform the actual filing. The guide's role is to ensure you arrive at that professional engagement organized and prepared, which minimizes their billable time.

The When Someone Dies in New Zealand — Estate Settlement Guide includes a dedicated comparison of institutional fees versus alternative approaches, the full High Court Probate Walkthrough for executors who need to understand the court process, and the $40,000 Threshold Decision Guide for determining whether court involvement is required at all. If you are weighing whether Public Trust's fee structure is appropriate for the estate you are settling, the guide gives you the information to make that comparison clearly.

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