When someone dies without a will, it’s called intestacy. This means there’s no one with the authority to manage the estate. The law dictates who will benefit from the estate.
If the estate is worth less than $40,000 and doesn’t include property, their next of kin can usually handle it. For anything larger, the law requires formal administration.
To manage a larger estate, someone needs legal authority. This comes from the High Court in the form of ‘letters of administration on intestacy’. These letters give the chosen person – called the administrator – the power to collect assets, pay debts and distribute the remaining assets.
Letters of administration are also required when a will exists, but no executors named, or none of the named executors are able or willing to act. In these cases, the document issued is called ‘letters of administration with will annexed'.
Choosing an administrator is a big decision. It should be someone who:
Makes decisions objectively,
Understands the legal responsibilities,
Has a good understanding of accounting and tax law and
Has time to manage the process.
To apply for letters of administration, you’ll need to show the court:
There’s written agreement on who will be the administrator,
Confirmation that the person applying is entitled to apply and
If there is no will, a search has been conducted.
Once the court grants the letters of administration on intestacy, the administrator can get started. They’ll manage the estate and distribute assets according to New Zealand law. This depends on family circumstances – like whether there’s a partner, children or parents. If no relatives can be found, the estate goes to the New Zealand Government.
In the case of letters of administration with will annexed, then they’ll manage the estate and distribute the assets according to the will.
You choose the level of support that suits your situation. We’ll guide you through each step, so you can focus on what matters most.
Want to know more? Visit our probate and letters of administration page here.
Estate administration takes time, and it’s often more complex when there’s no will – but you don’t have to do it alone, we’re here to help.
If you’d like more information or support to help you feel fully equipped in your role as administrator, get in touch – we’re here to help.