Inheriting property or assets through a will is a common occurrence, yet many beneficiaries in New Zealand are unsure of the process that unfolds after the will-maker passes away. This guide aims to demystify what happens when you are left something in a will, covering the key steps and considerations that come into play.
Understanding the role of the will and the executor
When a person passes away and leaves a will, they typically appoint an executor. The executor’s role is to manage the deceased’s estate, ensuring that the distribution of assets, including property, money, and personal items, takes place in accordance with the terms of the will.
The probate process
Before the executor can distribute the assets, they must usually apply for and be granted probate. Probate is a legal process where the court confirms the will’s validity and grants the executor authority to administer the estate. You can read more about the probate process here.
Executors are usually expected to apply for probate within three months after the death. The time it takes to grant probate can vary depending on the court’s schedule, but as of 2024 the process is taking around two months. This means that, in most cases, you would expect probate to be granted within around six months from the date of death.
Some small estates are exempt from the requirement to seek probate. Details about what qualifies as a small estate can be found here.
Waiting period post-probate
Once probate is granted, there is generally a six-month waiting period in New Zealand before the estate’s assets can be distributed. This period allows for any claims against the estate, such as debts or disputes over the will, to be made.
The administration process
Once probate is granted, the executor will gather in all the assets of the estate. If required to give effect to the terms of the will, the executor will need to sell assets. The executor also needs to identify all debts owed by the deceased and make sure these are paid. Only once this is done can the executor distribute the assets in accordance with the will. This includes transferring property titles, distributing funds, or handing over specific items to the named beneficiaries.
The executor is usually expected to finalise the administration of the estate and distribute its assets within 12 months from the date of probate. This is sometimes called the executor’s year. For more information, read the guide on how long an executor has to administer an estate.
Your rights as a beneficiary
If you have been left something under the will, you are called a “beneficiary”. As a beneficiary, you have certain rights:
- Right to information – You are usually entitled to be told that you are a beneficiary, and to be informed about the estate’s probate and administration status and any delays in the process. The executor will typically contact you at an early stage of the administration and let you know that you have been left something under the will.
- Inventory and account -There is a presumption that executors must provide beneficiaries with an inventory and account of the estate’s assets and liabilities upon request.
Potential delays in receiving inheritance
Several factors might delay the distribution:
- Probate delays – Although probate is usually granted within around 6 months from the date of death, it can sometimes take longer. This is particularly the case if an error is made in the application and it needs to be resubmitted.
- Settling estate debts – Before beneficiaries can receive their inheritance, any debts or liabilities of the estate must be settled.
- Claims against the estate – If there are any claims made against the estate, such as disputes over the will or claims by family members or creditors, these need to be resolved first.
What if you don’t receive your inheritance?
If the will-maker passed away some time ago and you still haven’t received your inheritance, there are steps you can take. Read the free guide on what to do if you were left something under a will but never received it.