BNZ and Kiwibank Deceased Estate: Closing Accounts After a Death in NZ

When someone dies in New Zealand, their bank accounts don't automatically close. They freeze. The money stays there — inaccessible to the family and the executor — until the bank receives formal notification and the appropriate authority to release the funds. For families dealing with BNZ or Kiwibank accounts, knowing the exact process can make a significant difference to how quickly the estate moves forward.

What Happens to a Bank Account When Someone Dies

When a New Zealand bank is notified that an account holder has died, standard procedure is to freeze any accounts held solely in the deceased's name. This protects the estate — preventing anyone from withdrawing funds that belong to the estate and must be properly distributed.

Joint accounts work differently. If an account is held jointly with a surviving spouse or partner, the surviving account holder retains full access and control. Joint accounts do not form part of the deceased's estate — the right of survivorship means they pass directly to the surviving holder. The bank simply needs to update the account records by removing the deceased's name.

Sole accounts are frozen immediately on notification. The executor cannot access them, make withdrawals, or use them to pay bills — including funeral invoices — without providing the bank with the appropriate documentation.

The $40,000 Threshold: The Most Important Number

Under the Administration Act 1969, as amended in September 2025, banks can release funds of up to $40,000 to the next of kin or executor without requiring a formal grant of probate from the High Court.

This applies per institution. If BNZ holds $37,000 across the deceased's accounts and Kiwibank holds $29,000, both banks can potentially release those funds informally — even though the combined total is $66,000 — because neither individual bank holds more than $40,000.

When informal release is possible (under $40,000 at that bank): The executor or next of kin contacts the bank's deceased estates team, provides a death certificate, completes the bank's statutory declaration form, and signs an indemnity that protects the bank for releasing the funds without a court order. The bank then releases the balance to the estate account.

When probate is required (over $40,000 at that bank, or estate includes real estate): The bank will not release funds without a sealed grant of probate or letters of administration from the NZ High Court. There is no way around this requirement — the bank is legally prohibited from releasing amounts above the threshold without court authority.

BNZ Deceased Estate Process

BNZ has a dedicated deceased estates team that handles account closures and fund releases.

Step 1: Notify BNZ Contact BNZ as soon as possible after the death. You can do this in person at any branch, by phone, or by writing to their deceased estates team. If you use the myTrove portal (mytrove.co.nz) to notify agencies of the death, BNZ may be notified automatically — but it is still best to contact them directly to initiate the claims process.

Step 2: Gather the required documents BNZ will typically require:

• The original or a certified copy of the death certificate (issued by Births, Deaths and Marriages, currently $35.00 per copy)
• The original will, or a copy if the estate is straightforward and under the threshold
• Proof of identity for the executor or person dealing with the estate
• If probate is required: a certified copy of the sealed grant of probate or letters of administration
• If probate is not required (under $40,000): BNZ's statutory declaration form and indemnity, which they supply

Step 3: Request date-of-death balances Ask BNZ for a statement showing the balance in each account at the date of death. This is needed for the estate inventory and, if probate is required, for the High Court application.

Step 4: Pay funeral and urgent costs Before the full account release, BNZ — like most NZ banks — will consider releasing funds directly to pay a funeral director's invoice, even before the formal estate process is complete. Present the death certificate, proof of your authority (relationship to the deceased), and the funeral director's invoice.

Step 5: Close and transfer Once the formal process is complete, BNZ transfers the balance to the estate account (a separate bank account the executor opens specifically for the estate) or directly to beneficiaries where the estate is simple and the threshold is met.

Kiwibank Deceased Estate Process

Kiwibank's process is broadly similar, as it is governed by the same Administration Act 1969 threshold rules that apply to all New Zealand banks.

Notification: Kiwibank can be notified by phone, in-person at a branch, or through a written notification. Like BNZ, Kiwibank may receive a notification via myTrove, but direct contact with their deceased estates team is recommended to initiate the account closure process formally.

Documents required:

• Death certificate (certified copy)
• Identification of the executor or administrator
• Completed Kiwibank deceased estate claim form (provided by the bank)
• Will (if available) or statutory declaration confirming intestacy
• Probate grant if the balance exceeds $40,000

Joint accounts: Kiwibank will update joint accounts to remove the deceased's name upon presentation of the death certificate and identity verification from the surviving account holder. No probate is required for this step.

KiwiSaver through Kiwibank: If the deceased held a KiwiSaver account through Kiwibank Invest, this is treated separately from standard bank accounts. The same $40,000 threshold applies to the KiwiSaver balance specifically — it is assessed independently of any other Kiwibank accounts the deceased held. Contact the Kiwibank Invest team separately about the KiwiSaver claim process.

Other Major NZ Banks

The process described above is substantially the same across all major NZ banks, including ANZ, ASB, Westpac, and TSB. Each bank has its own deceased estates team and its own versions of the statutory declaration and indemnity forms, but the underlying legal framework — the $40,000 threshold, the requirement for probate above that amount, the ability to release funeral cost funds early — is consistent.

How Long Does It Take?

For estates under the $40,000 threshold at each bank, informal release typically takes 2 to 6 weeks once all documents are submitted — sometimes faster for simple cases.

For estates requiring probate, the bank cannot release funds until the High Court issues the sealed grant. The High Court probate process takes 6 to 8 weeks once the application is filed, and the application itself takes time to prepare. In practice, families should expect 3 to 5 months from the date of death to the date of bank account closure for probate-required estates.

Setting Up an Estate Account

Before the bank can release funds, you need somewhere to receive them. Most banks in New Zealand will open an estate account for an executor — a separate bank account in the name of "The Estate of [Deceased's Name]." This keeps estate funds separate from the executor's personal finances, which is legally important.

Contact any major NZ bank to open an estate account. You'll need the grant of probate or letters of administration to do so for a formal estate. For small informal estates, some banks will work with you using the death certificate and statutory declaration.

The New Zealand Estate Settlement Guide includes a bank notification tracking worksheet, the exact documents each major NZ bank requires, and instructions for navigating the $40,000 threshold — including a step-by-step assessment of whether your estate qualifies for informal closure without going to the High Court.

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