Estate Planning in NZ: What You Need, What It Costs, and What Most People Miss

An estate plan is the set of legal documents and ownership arrangements that determine who receives your assets when you die, who makes decisions if you become incapacitated, and who raises your children. In New Zealand, most adults need four things: a will, two enduring powers of attorney, and a clear picture of which assets pass through the will and which do not.

Why a Will Alone Is Not Enough

A will directs what happens to your assets when you die. Enduring powers of attorney (EPAs) protect you while you are alive, if you lose the ability to manage your own affairs. Most people treat estate planning as writing a will and stop there. In our experience advising New Zealand households, the biggest risk is not the absence of a will but the gap between what people assume their plan covers and what it actually covers. Several of the most valuable assets a family holds, such as the home in joint tenancy, life insurance with a named beneficiary, and a KiwiSaver Scheme balance, may bypass the will entirely.

For most couples, putting a proper plan together costs between $1,500 and $3,500, based on indicative rates from New Zealand law firms in 2025 and 2026. Dying without one costs more in legal fees, time, and family stress.

What Happens If You Have No Plan

If you die without a valid will in New Zealand, you die "intestate." Under the Administration Act 1969, a formula determines who inherits. The court applies that formula, not the family.

The intestacy formula works roughly like this: a surviving spouse or partner receives personal chattels plus the first $155,000 of the estate. That threshold was set by the Administration (Amounts to Spouse and Children) Order 2009 and has not been updated in seventeen years, a period over which the national median house price has more than doubled, according to REINZ sales data. If you have children, the remaining estate is split: one-third to the spouse or partner, two-thirds shared equally among the children. If you have no children, the spouse or partner receives a larger share and the remainder passes to parents, then siblings, then increasingly distant relatives. If no relatives can be traced, the estate goes to the Crown.

To illustrate what this means in practice, consider a married couple with two children, aged eight and twelve:

• Family home: $950,000 (held as joint tenants, mortgage of $350,000)
• KiwiSaver Scheme balances: $120,000 (Partner A) and $85,000 (Partner B)
• Life insurance: $500,000 policy on Partner A, naming Partner B as beneficiary
• Savings and investments: $60,000 in Partner A's sole name

Partner A dies unexpectedly. The home passes automatically to Partner B through joint tenancy (outside the will). The life insurance pays directly to Partner B as the named beneficiary (also outside the will). These two assets transfer cleanly.

Partner A's KiwiSaver Scheme balance ($120,000) and the savings ($60,000) fall into the estate, however, and intestacy rules apply. Partner B receives the first $155,000 plus one-third of the $25,000 residue, roughly $8,300 in total from the residue. The children share the remaining $16,700, held by the court until they turn twenty. Partner B must apply to the High Court for Letters of Administration to access any of these funds, a process typically taking several months and costing $5,000 to $15,000 or more depending on estate complexity and whether any aspect is contested. No testamentary guardian has been named for the children.

With a plan, Partner A's will directs the entire estate to Partner B (or into a trust for the children, or in whatever proportions Partner A chose). The executor named in the will steps in to manage probate without any court appointment needed. Partner B receives the full $180,000 in the estate, on top of roughly $600,000 in home equity and the $500,000 insurance payout, according to the directions Partner A set out while alive. A guardian is named for the children. If Partner A had become incapacitated rather than dying, EPAs would have allowed Partner B to manage finances and care decisions without court involvement. The total cost of the plan is roughly $2,000 to $3,000.

Your Will: The Foundation

A will specifies who receives your assets on death, who manages the process (your executor), and, if you have minor children, who you want to raise them. Under the Wills Act 2007, you must be eighteen or older (with limited exceptions), and the will must be in writing, signed by you, and witnessed by two people.

Choosing the right executor matters more than most people realise. This person will locate assets, pay debts, apply for probate (a High Court process confirming the will's validity and authorising the executor to act, typically taking six to eight weeks for straightforward estates according to the Ministry of Justice), and distribute the estate. It can be a trusted family member, a friend, or a professional such as a lawyer or trustee company. The role carries legal obligations, so it pays to choose someone organised, willing, and ideally younger than you.

Guardianship for Children

For parents of minor children, naming a testamentary guardian in your will is one of the most consequential decisions in your entire financial plan. Under the Care of Children Act 2004, this appointment takes effect on your death (or the death of both parents). Without it, the Family Court decides who raises your children. If you are in the early years of parenthood, this is the single strongest reason to make a will now rather than later.

How Relationships Affect Your Estate Plan

New Zealand law contains several traps here. Marriage or entering a civil union automatically revokes any existing will, unless the will was made in contemplation of that specific marriage or union. Entering a de facto relationship does not revoke your will, which means provisions for a former partner may remain in force longer than intended. Separation from a spouse does not revoke will provisions either; only a new will or a formal revocation does.

Under the Property (Relationships) Act 1976 (PRA), a surviving spouse or partner can elect to claim a 50/50 division of relationship property instead of accepting what the will (or intestacy) provides. This "election" right can substantially alter the intended distribution of an estate. It is one of the most commonly overlooked issues in New Zealand estate planning, particularly for couples with blended families or significant separate property.

The Family Protection Act 1955 also allows family members who believe a will made inadequate provision for them to challenge it in court. A will is powerful, but in New Zealand it is never entirely beyond dispute.

Enduring Powers of Attorney: Protecting You While You Are Alive

A will only takes effect when you die. An enduring power of attorney (EPA) protects you during your lifetime if you lose the ability to make decisions. Under the Protection of Personal and Property Rights Act 1988, there are two types, and most people need both.

EPA for property: Authorises someone you choose (your "attorney") to manage your financial affairs, including bank accounts, investments, paying bills, and selling property. This EPA can be drafted to operate immediately (even while you still have capacity) or only upon certified incapacity. The flexibility is useful if you travel frequently or want a trusted person to manage day-to-day finances as you age.

EPA for personal care and welfare: Authorises someone to make decisions about your health, living arrangements, and daily care. This EPA only activates when you are assessed as lacking mental capacity, confirmed by a relevant health practitioner or court declaration. It cannot operate while you are capable of making your own decisions.

Both EPAs must be signed while you have full mental capacity and witnessed by a lawyer who certifies you understand what you are signing. The cost is typically $200 to $500 per EPA, with many lawyers offering a combined package with your will for $800 to $1,500. These figures are indicative and vary by firm and region.

If you become incapacitated without EPAs in place, your family must apply to the Family Court for a welfare guardian or property manager appointment. This process is time-consuming, expensive, and public. For anyone planning for a long retirement, EPAs are as important as a will. For younger adults who could face incapacity through accident or illness, they are equally urgent.

Assets That Bypass Your Will

Joint tenancy property: If your home (or any other property) is held as joint tenants, it passes automatically to the surviving owner by right of survivorship. Your will has no say. Property held as tenants in common, by contrast, does form part of your estate and is governed by the will or intestacy rules. The distinction is critical, especially for couples who have contributed unequal amounts or who have children from prior relationships.

Life insurance: If your policy names a specific beneficiary (as most do), the payout goes directly to that person. It does not pass through your estate or your will. This is generally a good thing, as it avoids probate delays, but only if the named beneficiary is still the person you intend. A policy naming an ex-partner will pay the ex-partner regardless of what your will says.

KiwiSaver Scheme balances: Most KiwiSaver Scheme providers do not offer binding death benefit nominations. In practice, your KiwiSaver Scheme balance typically falls into your estate and is distributed via the will or intestacy rules. Some providers allow a non-binding nomination (a preference, which the trustee considers), but this varies by provider. It is worth confirming the position with your specific scheme.

Your beneficiary designations, your property ownership structure, and your will need to tell the same story. If they conflict, the designation or the legal ownership structure wins, every time. In our work with New Zealand families, misalignment between these documents is one of the most common issues we see, and one of the easiest to fix once identified.

Trusts: When They Help and When They Do Not

Family trusts were once a staple of New Zealand estate planning. They are far less useful than they were a decade ago.

The Trusts Act 2019, which came into force in January 2021, introduced mandatory duties for trustees (including a duty to know the trust terms, act honestly and in good faith, and exercise reasonable care and skill) and gave beneficiaries a presumptive right to trust information. The compliance burden increased, and ongoing administration costs of $500 to $2,500 or more per year are now common. From 1 April 2024, the trustee income tax rate rose from 33% to 39% under the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024, removing the tax advantage once justified many trust structures. A de minimis threshold applies: trusts with $10,000 or less of net trustee income in a year continue to be taxed at 33%, which limits the impact for smaller trusts but not for most trusts holding meaningful income-generating assets. In our practice, we regularly see trusts now costing more to maintain than they save. The combined effect is that many New Zealand trusts no longer serve their original purpose, and a significant number are being wound up.

Trusts still help in specific circumstances: protecting assets for vulnerable beneficiaries, managing the distribution of wealth across generations, or in some business structures. The default assumption should no longer be every family with property needs a trust. New trusts should only be established on clear, current legal advice, and every existing trust deserves a formal review.

Supporting Documents

Letter of wishes: A non-binding document addressed to your executor and trustees, explaining the reasoning behind your decisions and providing guidance the will cannot easily cover, such as how you would like a family business managed during transition, which personal items carry sentimental significance, or how you hope your children will be raised. It carries no legal force, but lawyers and advisers increasingly recommend one as a companion to the will. For families with complex dynamics or significant wealth passing between generations, a thoughtful letter of wishes can prevent more disputes than any clause in a trust deed.

Advance directive for medical care: New Zealand has no specific legislation creating a formal "living will," but advance directives are recognised under the Code of Health and Disability Services Consumers' Rights. You can record your preferences for end-of-life medical treatment, and healthcare providers are expected to respect them.

Digital assets and funeral preferences: Passwords, cryptocurrency wallets, online financial accounts, and social media profiles all need a plan. Cryptocurrency holdings are a particular risk because they may be irrecoverable without the private key or seed phrase. A secure list of accounts and access credentials, stored with your will or in a password manager your executor can access, is the starting point. A brief written record of your funeral preferences (burial or cremation, any specific wishes) saves your family from guessing during a difficult time. A typical funeral in New Zealand costs between $8,000 and $15,000 according to the Funeral Directors Association of New Zealand. Whether pre-paying or insuring for this cost makes sense depends on your broader financial position.

What Estate Planning Costs

Cost is one of the most common reasons people delay. The following figures are indicative, drawn from published guidance by Community Law centres and current market rates from New Zealand law firms:

• Will (straightforward): $300 to $800. Complex wills involving trust provisions or blended family considerations may cost $1,000 to $3,000 or more.
• Two EPAs: $400 to $1,000 for the pair.
• Combined will and EPA package: $800 to $1,500 is a common range.
• Trust establishment: $2,000 to $5,000, plus annual administration.
• Full estate plan review for a couple (wills, EPAs, trust review, beneficiary alignment): $1,500 to $3,500.

Online will services are available for $50 to $200, but they carry meaningful risks. A generic template cannot account for the PRA election right discussed above, guardianship nuances, or the interaction between your will and assets held outside your estate. For anyone with a home, children, or a KiwiSaver Scheme balance worth preserving, professional preparation is the safer path. Two people with identical assets can face very different estate planning needs depending on family structure, relationship history, and how their property is owned.

Common Myths

"My partner will automatically get everything." Under intestacy, the $155,000 threshold described above means children are entitled to a substantial share. The PRA election right can override even a well-drafted will.

"My will controls all my assets." Joint tenancy property, life insurance with a named beneficiary, and certain superannuation arrangements all pass outside the will.

"Estate planning is only for the wealthy." Anyone who owns a home, has dependants, or holds a KiwiSaver Scheme balance has enough at stake. New Zealand has no estate tax or inheritance tax (gift duty was abolished in 2011), so tax is rarely the driver. The real costs of failing to plan are legal fees, delays, and family conflict. The 39% trustee income tax rate is the main tax consideration, and it applies only if a trust is involved and the trust's net income exceeds the $10,000 de minimis threshold.

"I set up a trust years ago, so I am covered." A trust established before the Trusts Act 2019 and the 39% trustee tax rate may no longer achieve what it was designed to do. Trusts require active compliance, regular review, and ongoing cost.

"My plan from ten years ago is still fine." Legislation changes. Relationships change. Asset values change. A will drafted before a new marriage is automatically revoked under the Wills Act 2007. Plans need regular review.

When to Review Your Plan

A formal review every three to five years is a reasonable baseline. Review your documents immediately after any of these events:

• Marriage, civil union, or entering a de facto relationship
• Separation or divorce
• Birth or adoption of a child or grandchild
• Death of a named executor, trustee, guardian, or attorney
• Significant change in asset value (buying or selling property, receiving an inheritance)
• Change in health or mental capacity of yourself or a named attorney
• Major legislative change (the 2024 trustee tax rate increase is a recent example)
• Starting, selling, or closing a business

Getting Started: A Practical Checklist

If you have done nothing yet, prioritise in this order:

1. Make a will and two EPAs. A lawyer who handles estates regularly is the right professional for this work.
2. Check how your assets are actually owned. Is your property held as joint tenants or tenants in common? Who is the named beneficiary on your life insurance? What happens to your KiwiSaver investment on death?
3. Review any existing trust. Does it still serve a purpose given current compliance obligations and the trustee tax rate?
4. Write a letter of wishes. This costs nothing and can be done at home.
5. Record your digital access credentials and funeral preferences.
6. Tell your executor and attorneys where your documents are stored. A plan nobody can find when it is needed has no practical value.

The team you may need is smaller than you think: a lawyer for the legal documents, a financial adviser for the broader financial picture, and an accountant if you have a trust or business interests.

If you would like help reviewing how your documents, insurance nominations, and asset ownership work together, get in touch.

^{Become Wealth provides financial advice, not legal advice; estate planning involves legal documents prepared or reviewed by a qualified lawyer.}