What happens to KiwiSaver when someone dies in New Zealand?

When someone dies, their KiwiSaver balance is paid out — but not always the way families expect. Unlike a life-insurance policy with a named beneficiary, KiwiSaver forms part of the person's estate.

KiwiSaver is part of the estate

You can't usually name a beneficiary on a KiwiSaver account the way you can with life insurance. Instead, the balance is paid to the deceased person's estate, and then distributed according to their will — or, if there's no will, under the intestacy rules. So who ultimately receives it depends on the estate, not on a nomination.

How to claim a deceased person's KiwiSaver

1. Contact the KiwiSaver provider (the bank or fund manager) and tell them the member has died.
2. Provide the documents they ask for — typically the death certificate, proof of your authority (as executor or administrator), and the member's details.
3. The provider releases the funds to the estate, which the executor then distributes.

Do you need probate to claim KiwiSaver?

It depends on the balance. Each provider sets a threshold (often around $15,000, but it varies):

• Below the threshold — many providers release the funds without a grant of probate or letters of administration, on a statutory declaration and the death certificate.
• Above the threshold — the provider will usually require probate (where there's a will) or letters of administration (where there isn't) before paying out.

Tax and timing

The KiwiSaver balance paid to the estate is generally not taxed as income to the beneficiaries. Timeframes vary by provider and whether probate is needed — straightforward claims can take a few weeks once the paperwork is complete.

The takeaway

Because KiwiSaver flows through the estate, a valid, up-to-date will matters — it decides who actually receives it. If you're planning ahead, you can make a free draft will on Afterword.

This article is general information about KiwiSaver and deceased estates in New Zealand, not financial or legal advice.