Intestacy Rules NZ

Your partner died without a will. You assume everything passes to you automatically. It doesn't — and that assumption has cost New Zealand families their homes.

Intestacy in New Zealand is governed by the Administration Act 1969, and the rules are nothing like what most people expect. Here's exactly what happens.

What "Dying Intestate" Means

Dying intestate means dying without a valid will. It's more common than you'd think — roughly 50% of New Zealanders die without one. When there's no will, the Administration Act dictates who gets what. The deceased's wishes are irrelevant because they were never formally recorded.

The estate doesn't just pass to whoever needs it most, or whoever was closest to the deceased. It follows a strict legal hierarchy, regardless of the actual nature of your relationship.

The Spouse's Share — It's Not Everything

This is where most people get a shock. If your partner dies intestate, you do not automatically inherit the entire estate.

Under the Administration Act, a surviving spouse or de facto partner receives:

• All personal chattels — furniture, vehicles, jewellery, clothing, household items
• $155,000 from the residue of the estate (this threshold has not kept pace with inflation)
• One-third of the remaining residue if there are surviving children, or the full remaining residue if there are no children and no surviving parents

So if the estate is worth $400,000 net (after debts), the calculation looks like this:

• Personal chattels go to the spouse
• First $155,000 of residue goes to the spouse
• Remaining $245,000 is split: spouse gets one-third ($81,667), children share two-thirds ($163,333)

That means the spouse walks away with roughly $236,667, not $400,000. The rest goes to the children — including children from a previous relationship.

If there are no children, the next in line after the spouse are the deceased's parents, then siblings.

The Problem With Jointly Owned Property

Joint tenancy is a separate legal mechanism from intestacy. Property held as joint tenants passes by survivorship directly to the surviving owner — it bypasses the estate entirely and the intestacy rules don't apply to it.

But property held as tenants in common (each person owns a defined share) does form part of the estate and is subject to the intestacy rules. Many couples, especially those who bought property together decades ago, don't know which one they have. Check your title at the Land Information New Zealand (LINZ) portal.

Letters of Administration — The Step Everyone Skips

Here's the part that causes the most delay. Because there's no executor named in a will, someone must apply to the High Court to be appointed administrator of the estate. This is done through an application for Letters of Administration.

Without Letters of Administration, you cannot:

• Access bank accounts in the deceased's sole name (above small-amount thresholds)
• Transfer or sell real estate held in the deceased's sole name
• Deal with most investment accounts or shares

The process involves:

1. Filing an application in the High Court (usually the nearest registry)
2. Providing the death certificate and details of the estate
3. Paying court fees (currently around $260 for the application)
4. Waiting for the court to process the application — typically 4–8 weeks for straightforward cases

If there's any dispute about who should be administrator, or if assets are complex, it takes longer.

The Distribution Hierarchy

If there's no surviving spouse or de facto partner, the estate passes down this ladder:

1. Children (in equal shares, including adopted children)
2. Parents
3. Siblings (or their children if the sibling has died)
4. Grandparents
5. Uncles and aunts (or their children)
6. The Crown (if nobody else qualifies)

De facto partners have the same rights as spouses under the Administration Act — but only if the de facto relationship lasted at least three years, or there's a child of the relationship, or the survivor made substantial contributions.

De Facto Relationships and the Risk Zone

If you were in a de facto relationship of less than three years with no children, you may receive nothing under intestacy rules — even if you lived together for two years and shared everything. This is one of the most heartbreaking outcomes in probate.

If you're in this situation and your partner has just died, you may have a claim under the Property (Relationships) Act 1976 or the Family Protection Act 1955, but these require court applications and are contested processes. Get legal advice immediately.

What To Do First

If you're dealing with an intestate estate right now, the priorities are:

1. Get the death certificate
2. Identify what assets are in the deceased's sole name versus joint ownership
3. Contact a lawyer or the Public Trust about Letters of Administration
4. Don't make assumptions about what you're entitled to — the rules may not align with your expectations

If the estate is simple and small (under roughly $15,000 in any single institution), some banks will release funds on presentation of the death certificate alone. Ask the specific institution — policies vary.

For anything more complex, including real estate in sole name, you need the court process.

The survivor benefits that apply to your situation — including what you can claim from Work and Income, ACC, and KiwiSaver — are just as important as sorting the estate. The NZ Survivor Benefits guide covers the full picture of financial entitlements after a death, separate from probate.

Why Intestacy Laws Are Outdated

The $155,000 spousal preference hasn't been reviewed in years. It was set at a level that made more sense when property prices were lower. A surviving spouse in Auckland may find that the $155,000 threshold covers a fraction of the estate's value, meaning children receive a substantial share even when the surviving spouse needs those funds to stay in the family home.

Law Commission reviews have flagged this problem repeatedly, but the threshold hasn't been updated to reflect current property values.

Practical Takeaways

• Dying without a will in NZ does not mean your spouse gets everything
• The Administration Act 1969 controls distribution through a fixed hierarchy
• You need Letters of Administration from the High Court to manage most estate assets
• Joint tenancy passes outside the estate; tenants in common does not
• De facto partners of less than three years may have no intestacy rights

If you haven't made a will yet, this is the most compelling reason to do it. If you're currently navigating an intestate estate, talk to a lawyer before assuming you know what you're entitled to.

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