When a person dies, High Court permission is usually needed to deal with the estate. However, High Court authority is not necessarily required to deal with sums of money up to the “prescribed amount.”
From 24 September 2025, the “prescribed amount” will rise from $15,000 to $40,000.
This change allows organisations such as superannuation funds, insurance companies, and banks (which we will call “asset holders”) to release up to $40,000 to a deceased person’s relatives or beneficiaries without the need for High Court permission (a grant of probate or letters of administration).
So, families will likely find it easier to access funds held by individual asset holders — provided no more than $40,000 is held with each asset holder. Asset holders are not required by law to sight formal court documents before making payments at or below this amount.
In practice, families will be able to approach one or more asset holders for the release of any sum of money that is $40,000 or less. Asset holders may release such amounts and enjoy a statutory protection afforded by the Administration Act 1969.
However, each asset holder is likely to have its own procedures to ensure funds are released appropriately. This may involve completing forms, making declarations, or providing undertakings.
Importantly, anyone receiving funds must apply the money “in the due course of administration.” Asset holders may require recipients to make a formal promise that they will perform their legal duties.
If there is a will, executors still have legal duties and must carry out the deceased’s wishes (even if they go directly to asset holders without going to the High Court). For this reason, having a valid will remains best practice, and allows the will-maker to control the distribution of his or her estate, even if the estate is modest.
Even if there is no will, relatives or recipients applying to access money from an estate must be mindful of others who may have a legal interest in the estate.
While this reform is expected to reduce legal costs and delays, relatives or recipients under an estate should still seek legal advice before accessing estate funds directly through asset holders. We suggest reaching out to a community law centre in the first instance and we recommend engaging a legal practice providing wills and estates services.