​When you pass away, your home becomes part of your estate. How it is handled depends on several key factors, including whether you have a will, how the property is owned, and your family or legal arrangements. Planning ahead can make the process smoother for your beneficiaries.

​

Step 0: Have a Will

​

Before anything else, the single most important step you can take is to have a valid will in place. A will makes everything simpler for the people you leave behind. Without one, the process of managing your estate can become incredibly slow, complex, and stressful for your family — often turning into a major hurdle that delays everything from accessing funds to selling or transferring property.

​

If you own a business, not having a will can create even bigger problems. The lack of clear instructions may stall or even jeopardize the continuation of the business, leaving employees, partners, and clients in limbo. A properly drafted will ensures your wishes are followed, reduces the risk of disputes, and provides clarity for both your loved ones and any business interests.

​

Tip: Even a simple will can prevent confusion, protect your assets, and give your family peace of mind.

​

Step 1: Does your will include your home?

​

• With a will: If you have a valid will, it will specify who inherits your home and any conditions attached. Your executor, the person you appoint in your will, is responsible for carrying out these instructions. Having a clear will reduces the chance of disputes and speeds up the process.

• Without a will (intestate): If you don’t have a will, New Zealand’s intestacy laws apply. Generally, your spouse or civil union partner inherits first, followed by children or other close relatives. This process can be more complicated, as the law determines the distribution, which may not match what you would have wanted. Guidance on intestacy can be found at Public Trust.

​

Tip: Even a simple will can prevent confusion and family disputes, and it ensures your wishes are followed.

​

Step 2: How is your home owned?

​

Ownership type directly affects what happens after your death:

• Joint Tenants: If your home is owned jointly with another person as joint tenants, the surviving owner automatically inherits your share. This happens immediately upon death, bypassing probate. It’s important to note that this may override instructions in a will.

• Tenants in Common: If you own the property as a tenant in common, your share of the property becomes part of your estate and is distributed according to your will or intestacy laws. This allows you to leave your share to someone other than your co-owner.

​

For more details, see Community Law.

​

Step 3: Applying for probate or letters of administration

​

• With a will: Your executor applies for probate, a legal document confirming the will’s validity and granting the executor authority to manage the estate. Probate ensures that banks, property registers, and other institutions recognize the executor’s right to act.

• Without a will: If there is no will, an administrator must apply for Letters of Administration. This legally authorizes them to handle the deceased’s property and distribute assets according to the law.

• ​

More information can be found at Govt.nz – Wills, Probate & Estates.

​

Step 4: Transferring property ownership

​

Once probate or Letters of Administration are granted:

1. Transmission Application: This form is completed to legally transfer the property from the deceased to the beneficiary or surviving owner.

2. Land Information New Zealand (LINZ): The completed application is submitted to LINZ to officially update the property title.

​

This ensures the legal ownership is correctly recorded, which is essential if the property is to be sold or mortgaged.

​

Step 5: Tax considerations

​

• Inheritance Tax: New Zealand does not have inheritance tax, so beneficiaries typically do not pay tax just for inheriting the property.

• Bright-Line Test: If an inherited property is sold within the bright-line period (currently 10 years for most properties), the sale may be subject to tax if the property is considered residential land (IRD – Inheriting Property).

​

Tip: Consulting an accountant or tax advisor before selling can help avoid surprises.

​

Step 6: Selling the property

​

If the beneficiary decides to sell:

• Legal assistance: Engaging a lawyer ensures all steps, including title transfer and sale agreements, are handled correctly.

• Real estate agent: Using an experienced agent can help achieve the best price and navigate the local market.

• Preparation: Consider minor repairs, decluttering, or staging the home to maximize value.

​

Step 7: Special considerations for Māori land

​

Māori land has specific rules:

• A Māori Land Court order is required to transfer ownership when an owner dies.

• Ownership succession may follow iwi or hapū rules, which differ from general inheritance law.

​

More guidance: Community Law – Succession of Māori Land.

​

Frequently asked questions

​

Q: Can I sell my home before I die?
A: Yes, but consider the impact on your estate and beneficiaries. Selling while alive can simplify inheritance, but may affect tax planning and entitlements.

Q: What if I want to leave my home to someone not in my will?
A: If there’s no will, the laws of intestacy decide who inherits. A will allows you to specify your wishes, within New Zealand legal requirements.

Q: How long does it take to transfer ownership after someone dies?
A: This depends on whether probate or Letters of Administration are required. Simple estates can take a few weeks; complex estates may take several months.

​

Need Help?

• Public Trust: Offers estate management services, especially for intestate estates.

• Community Law: Provides free legal information to understand property inheritance rules in NZ.