Red Tape Reform Urged as NZ Probate Threshold Lags Behind Inflation

Regulation Minister David Seymour has highlighted growing public frustration over outdated probate rules, with over 750 submissions pouring into the Ministry for Regulation’s Red Tape Tipline. A key concern raised involves the stagnant threshold for probate, which many New Zealanders now view as a burdensome relic failing to reflect modern economic realities.

Probate is the legal process required to administer a deceased person’s estate. Currently, if an estate’s value exceeds $15,000, executors must seek approval from the High Court. But that $15,000 cap has remained unchanged for over 15 years—despite nearly 50% inflation over that same period.

“The maximum value for distributing an estate without probate is $15,000. This has not changed in over 15 years,” Seymour noted. “In that time, inflation has increased 48 per cent, New Zealand made same-sex marriage legal, and the All Blacks have won two Rugby World Cup titles.”

Inflation Adjustment Would Raise Threshold to $22,000

An internal investigation by the Ministry for Regulation found that if the threshold were simply indexed to inflation, it would now sit at approximately $22,000. This simple adjustment, Seymour emphasized, could spare grieving families unnecessary stress and save valuable court resources.

One submission particularly stood out. A member of the public recounted the emotional and procedural ordeal of applying to the High Court over a modest estate—an experience that took more than six months to resolve. “This clogs up the courts and means probate takes much longer than necessary, for estates which are of a value lower than the value intended to require probate,” said Seymour.

Legal Mechanism for Change Already Exists

Encouragingly, fixing the outdated threshold doesn’t require an overhaul of the law. The Administration (Prescribed Amounts) Regulations 2009 govern the current limit, and they can be amended with Cabinet approval. The responsible Minister has the authority to initiate the process.

“This is an easy fix,” Seymour emphasized. “I have written to the Minister of Justice, Hon Paul Goldsmith, with the Ministry for Regulation’s findings. He is responsible for the regulation.”

A Small Policy Shift with Big Impacts

Raising the probate threshold to better reflect today’s economic conditions could alleviate stress for thousands of Kiwis dealing with the death of a loved one. It would also reduce caseload pressure on the judicial system by eliminating the need for High Court intervention in low-value estates.

As Seymour and the Ministry await a response from the Minister of Justice, the growing call for regulatory modernization serves as a stark reminder: even small, outdated rules can cause significant public frustration when left unchecked.