The reality might shock you. Many people believe everything automatically passes to the surviving partner – but the law doesn't always work that way. Instead, a strict legal formula decides how the estate is divided, often in ways families never expect.
Losing a partner is devastating and navigating what happens to shared property can add another layer of stress. In New Zealand, if your partner passes away without a Will, the law decides how their assets are distributed under the Administration Act 1969. This is known as dying intestate.
The outcome for a surviving partner depends heavily on how the property is owned. Here's a breakdown of what happens in New Zealand, why ownership type matters, and the steps couples can take to protect each other.
New Zealand's Intestacy Distribution Rules
If someone in New Zealand dies without a Will, the Administration Act 1969 decides how their estate is divided.
- If there is a partner but no children or parents → the partner gets everything.
- If there is a partner and children → the partner is entitled to all personal chattels (cars, furniture, jewellery, etc.), the first $155,000 (statutory legacy), and one-third of the remainder. The children share the other two-thirds.
- If there is a partner and no children, but surviving parents → the partner gets all personal chattels, the first $155,000, and two-thirds of the remainder. The parents inherit the other one-third.
- If there is no partner but children survive → the children inherit everything in equal shares.
Important Note: Under New Zealand law, only biological and legally adopted children automatically inherit under intestacy rules. Stepchildren do not have inheritance rights unless formally adopted.
When someone dies without a Will, an administrator needs to be appointed by the High Court to deal with the estate. This process can take months during an already difficult time.
Jointly Owned Property (Joint Tenancy)
If you and your partner own property jointly – for example, your family home – then the law of survivorship applies. This means their share automatically transfers to you, the surviving partner.
As RNZ’s Ask Susan column explains, assets held in joint names – such as houses, vehicles or even joint bank accounts – bypass the estate entirely. They don't get divided under intestacy rules, regardless of what other family members might be entitled to. You simply become the sole owner.
This provides immediate certainty and security, especially for a surviving partner living in the shared home.
Property Owned as Tenants in Common
The situation is very different if you and your partner own property as tenants in common. In this case, each person legally owns a defined share (often 50/50, but it can be another split).
If your partner dies without a Will, their share does not automatically pass to you. Instead, it becomes part of their estate and is distributed under intestacy laws.
This could mean you end up co-owning your home with your partner’s children, parents, or other relatives, depending on their surviving family.
Why the Distinction Matters
- Joint Tenancy → your partner's share passes automatically to you
- Tenants in Common → their share is distributed under intestacy rules
This distinction doesn’t just apply to houses – it also matters for bank accounts, vehicles, and other jointly registered assets.
Example*: Why Having a Will Matters in New Zealand
Dot came to us for help after her husband, Jerry, passed away without a Will. Jerry owned the family home in his sole name, and Dot continued living there after his death. Jerry also had a biological daughter from a previous relationship.
At first, Dot and Jerry’s daughter had a warm relationship. But when Dot applied to administer Jerry’s estate, the law dictated how the assets would be divided. Under New Zealand’s intestacy rules, because Jerry had a child, Dot was not entitled to the entire estate. Instead, she was entitled to the personal chattels, $155,000, and one-third of the remaining estate. Jerry’s daughter was legally entitled to the other two-thirds.
This meant the house, Jerry’s main asset, was effectively co-owned between Dot and Jerry’s daughter. To stay in the home, Dot had to buy out her daughter’s share. What began as an amicable relationship quickly became strained, and Dot was forced to use her savings to cover the cost.
Had Jerry created a Will setting out his wishes, this conflict could have been avoided. Instead, the people he cared for most were left dealing with legal costs, financial stress, and the breakdown of family ties.
*This is a fictitious case study provided for explanatory purposes only.
Special Considerations for De Facto Partners
New Zealand law recognises de facto relationships, but rights can be more complex than for married couples. If your partner dies intestate, you may need to prove the relationship meets legal definitions, such as living together for a certain period, to inherit.
This makes it particularly important for de facto couples to have a valid Will to ensure their wishes are clear and legally binding
Relationship Property vs Estate Property
Relationship property laws work alongside succession laws. You may have options under the Property (Relationships) Act 1976 to claim half of the relationship property, which could override some intestacy distributions. However, this requires legal action and can be complex.
Understanding Current Law Changes
In December 2021, the Law Commission concluded its review of succession legislation and released a report to Parliament with recommendations for modernising intestacy laws. While these changes haven’t been implemented yet, they aim to:
- Simplify the distribution rules
- Better reflect modern family structures
- Provide clearer guidance for blended families
- Update the statutory legacy amounts
These reforms remain under consideration by the government, so keep an eye on these potential changes as they may affect future estate planning decisions.
Protecting Yourself and Your Family
To avoid surprises during an already difficult time, it’s important to:
- Check how your property is registered (Joint Tenancy or Tenants in Common)
- Discuss your wishes with your partner
- Seek legal advice to understand the implications of intestacy for your situation
- Make a Will to ensure your estate reflects your intentions
Consider relationship property implications and how they interact with succession laws
Common Mistakes to Avoid
Many couples make assumptions about what happens when a partner dies. Common misconceptions include:
- Assuming joint ownership: not all jointly purchased property is automatically joint tenancy
- Overlooking other assets: bank accounts, investments, and vehicles may not automatically transfer
- Ignoring blended families: biological children from previous relationships have inheritance rights
- Relying on old Wills: outdated Wills may not reflect current circumstances
Key Points: Property and Wills in New Zealand
Who inherits property if there is no Will in New Zealand?
It depends on the ownership type. Jointly owned property passes directly to the surviving partner, while tenants in common property go into the estate and are distributed under intestacy rules.
Does a partner automatically inherit a house in New Zealand?
Only if the home is owned as joint tenants. If it’s tenants in common, the deceased’s share follows intestacy laws.
Do de facto partners have the same inheritance rights as married couples in NZ?
They have rights under the law, but these can be harder to establish without a Will. Making one ensures clarity.
Disclaimer
This article is for general information only and should not be considered legal advice. For guidance tailored to your situation, speak with a New Zealand lawyer or estate planning professional.
