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MANAGING KIWISAVER FUNDS AFTER THE LOSS OF YOUR LOVED ONE

Dealing with the financial affairs of your loved one who has passed away can be overwhelming, especially when it comes to their KiwiSaver funds. Understanding the process for accessing these funds is essential during this challenging time.

PROBATE AND WILL

If your loved one had a valid will and their KiwiSaver balance is more than $15,000, the process typically involves applying to the court for ‘probate.’ This grants you and other relatives legal authority to administer the estate, including the KiwiSaver funds. Once probate is granted, the funds are transferred to the estate and distributed according to the instructions in the will.

However, if the KiwiSaver balance is less than $15,000, funds may be released without the need for probate.  Each provider will have their own requirements for closing the account and releasing the funds but usually they will require a copy of the Will and death certificate and for the Executors to sign a form and provide their IDs and proofs of address.  It’s important to check with the specific provider for their requirements in such cases.

INTESTACY (NO WILL)

In the event of intestacy (no will) and a KiwiSaver balance exceeding $15,000, the closest relative to your loved one will need to apply for the appointment of an administrator through the court.  Under the Administration Act 1969, the closest relative is the Spouse/De facto Partner, then children, then parents, and then siblings. 

Once “Letters of Administration” are granted, the administrator can manage the estate, including the KiwiSaver funds.

For balances less than $15,000, the process may vary depending on the provider’s policies and letters of administration may not be required.  You will need to check with the provider’s requirements but usually they require a copy of the death certificate and evidence of the applicant being the closest relative such as marriage certificate or birth certificate along with their ID and proof of address.

TIMEFRAME

The timeframe for transferring KiwiSaver balances can vary based on the complexity of the estate and the specific provider’s policies. In cases where probate or Letters of Administration are required, the process can take between 6 months. However, if the balance is less than $15,000 and the provider allows for simplified release, the process may be expedited. 

While you may be able to obtain the funds in less than 6 months, it is recommended to wait at least 6 months from the date probate or letters of administration is granted before distributing to protect the administrator from personal liability should any claims against the estate be raised. 

Navigating KiwiSaver funds after the loss of your loved one requires understanding the specific processes and requirements.  Whether it’s obtaining probate or Letters of Administration or following simplified procedures for smaller balances, Caring Estates is here to provide clear communication and proactive planning to ease the burden on you and your family during this challenging time.