Is Probate required when the estate assets are less than $15,000 per institution but totals more than $15,000?

Losing a loved one is never easy, and navigating the complexities of estate matters can add to the overwhelming emotions. One common question that arises is whether it is possible to access funds from a bank account or insurance policy when the total amount in that institution falls below the prescribed amount payable under the Administration Act of $15,000, but the overall estate value exceeds this threshold.

Under Section 65 of the Administration Act 1969, if the amount payable from a bank account (or any other institution listed in the Act) does not exceed $15,000, the institution can pay the funds to any person who appears to be entitled, upon application. Those institutions listed in the Act include employers, ACC, Housing New Zealand, KiwiSaver, and life insurance providers.

This means that total estate value can exceed $15,000 without requiring administration if the amounts held in each institution are individually less than $15,000.  However, the presence of any interest in land within the estate will necessitate the grant of administration.

In short, when the total amount in a bank account is less than $15,000, but the overall estate value surpasses this threshold, it is possible to obtain the funds without obtaining a grant of probate or letters of administration from the court. Banks (and other financial institutions) have the discretion to make payments to anyone appearing to be entitled to the funds. However, if the estate includes any interest in land, probate or letters of administration will be required.

Navigating estate matters can be challenging, and seeking professional legal advice is always recommended to ensure compliance with the specific circumstances of your situation. At Caring Estates we understand the complexities of estate law and provide compassionate, transparent, and flexible services to guide you through the process, alleviating your burden during this difficult time.