Simplifying small estate handling: New $40k probate threshold takes effect in September.

Currently when a person passes away having assets in their sole name with a value of $15,000 or more a formal grant of administration (either probate or letters of administration) is required to deal with those assets.

On September 24th the asset value threshold is rising to $40,000. After this date if a person passes away with assets valued less than $40,000 in their sole name, their assets can be accessed without requiring a formal grant of administration.

This will ease the burden on smaller estates, having less estate funds spent on legal costs while also making it simpler and faster for executors to administer the estate.

We recommend you have a valid will in place no matter the value of your assets to avoid costs and complexity in managing your estate.

If you have any questions how this may affect you or if you would like to complete or update your will, contact any member of our Estates, Family and Trust team.

This article is current as at the date of publication and is only intended to provide general comments about the law. Harkness Henry accepts no responsibility for reliance by any person or organisation on the content of the article. Please contact the author of the article if you require specific advice about how the law applies to you.