Settling the estate

You need authority to act. If you're the executor named in the will, you may need probate before institutions will deal with you. If there's no will, you'll need Letters of Administration from the High Court.

Some things don't need probate — banks may release small balances (under $15,000–$25,000) with a death certificate and signed indemnity. Ask each institution what they require.

If the deceased owned property (house, land), it cannot be transferred without probate.

• Joint ownership — if the property was held as joint tenants, it passes automatically to the surviving owner. You still need to update the title with LINZ.
• Sole ownership — the executor transfers it according to the will (or intestacy rules). This requires probate, a transmission application to LINZ, and usually a solicitor.
• Selling the property — the executor can sell on behalf of the estate once they have probate. Real estate agent fees and solicitor costs come from the estate.
• Mortgage — notify the bank. If there's life insurance on the mortgage, it may pay it off. Otherwise, the mortgage becomes a debt of the estate.

• Registration — update with Waka Kotahi / NZTA online or at an agent. You'll need the death certificate.
• Insurance — notify the insurer. If the vehicle is no longer being driven, you may be able to reduce cover.
• Selling — the executor can sell on behalf of the estate. Transfer registration to the buyer in the usual way.
• WOF and rego — keep these current if the vehicle is still being used or is for sale.

The estate is responsible for the deceased's debts — not you personally (unless you were a co-borrower or guarantor).

Debts are paid in this order:

1. Funeral costs — always first
2. Estate administration costs — solicitor fees, court fees
3. Secured debts — mortgage, hire purchase
4. Unsecured debts — credit cards, personal loans, utilities
5. Tax — final income tax, any GST owed

If the estate can't cover all debts, they are paid in the order above. Beneficiaries only receive what's left. If there's nothing left, there's nothing left — debt does not pass to family members.

Once debts are paid and the creditor notice period has passed:

• Wait at least 6 months from probate before final distribution — this protects against claims under the Family Protection Act
• Prepare estate accounts — a summary of all assets, debts paid, and how the remainder is being distributed
• Get beneficiary sign-off — have each beneficiary approve the accounts before you distribute
• Keep records — as executor, keep copies of everything for at least 7 years