What to Do Financially When a Partner Dies in NZ: The First Steps for Money, KiwiSaver and Claims

A plain NZ adviser guide to the money side of losing a partner: what to do in the first 90 days, how to claim on life insurance, what happens to their KiwiSaver, who to notify, and the support available including the Funeral Grant and NZ Super.

Losing a partner is hard enough without a wall of paperwork landing on top of grief. Yet the money side cannot wait indefinitely: bills keep arriving, an insurer needs to be told, and accounts have to be sorted out. This guide sets out the practical financial steps for the first few months after a partner dies in New Zealand, in roughly the order they tend to come up. Almost none of it has to happen on day one. Most of it can be done at your own pace, and a lot of it you do not have to do alone.

TL;DR: Very little is urgent in the first week. Where the estate cannot pay, Work and Income may help with a Funeral Grant of up to $2,697.43 ¹. Life insurance is claimed by giving the insurer a death certificate and a claim form ¹⁰. KiwiSaver does not pass straight to you — it goes to the estate ⁵. NZ Super moves from the couple rate to the single rate ³⁴.

What needs to happen in the first few weeks after a death in NZ?

In the very first days, the only essential financial task is registering the death and obtaining the death certificate, usually arranged through the funeral director. Almost everything else can wait. Banks, insurers and providers are used to dealing with bereaved families and there is no penalty for taking a fortnight to get to them.

It helps to think of the first 90 days in three loose stages rather than one overwhelming list.

Figure (described): a timeline-checklist titled "First 90 days after a partner dies: a money action plan", running left to right across three columns. Week 1 lists notify and funeral grant; weeks 2 to 4 list the insurance claim and accounts; months 2 to 3 list probate, KiwiSaver, NZ Super and rebuilding the plan. Source: Smiths Financial.

A practical tip that saves a lot of repeat trips: ask the funeral director or the Births, Deaths and Marriages service how many certified copies of the death certificate you are likely to need. Each insurer, bank and provider will usually want to see one. Many people order several at once.

How do you claim on a life insurance policy?

If your partner held life cover, this is often the step that brings in the most money and the one worth starting early. The process is more straightforward than people fear.

Industry guidance is to contact the insurer as soon as is practical. To lodge a claim you generally need to supply the death certificate and a completed claim form from the insurer ¹⁰. The insurer then assesses the claim and, once satisfied, pays the benefit to the people named on the policy.

Where the money goes depends on how the policy was set up:

• If a beneficiary was nominated, or the policy was owned by you, the payout usually goes directly to that person, often within weeks, and outside the estate.
• If no beneficiary was named and the deceased owned the policy, the benefit is usually paid into the estate and distributed under the will ⁵.

That direct-payment feature is the main reason life cover behaves so differently from KiwiSaver: it can reach a surviving partner quickly, while estate assets can take months. Our guide on KiwiSaver and life insurance on death walks through how the two sit alongside each other.

Whether a claim is paid depends on the terms, conditions, exclusions, stand-down periods and underwriting of the specific policy, and on the disclosure made when it was taken out. This is a summary only — always read the policy wording or product disclosure statement. If the policy was arranged through an adviser, that adviser can usually manage the claim on your behalf, which is one less thing to carry. We work with a panel of selected insurers, listed in our disclosure.

What happens to your partner's KiwiSaver?

This is the part that catches many people out, because KiwiSaver does not work like life insurance. There is no binding beneficiary nomination. When a member dies, their account is closed and the full balance is paid to the estate — the executor or administrator — and then distributed under the will, or under the intestacy rules if there is no will ⁵. It does not pass automatically to the surviving partner.

In practice that means:

• You contact the provider (Simplicity, Milford, Generate, Booster, Kernel, Fisher Funds, ANZ or whoever holds the account) and notify them of the death.
• For a smaller balance, the provider can often release it to eligible family without a court grant.
• For a larger balance, the provider usually waits for probate or letters of administration before releasing the funds ⁶.

So a partner's KiwiSaver can sit untouched for weeks or months while the estate is sorted, which is worth knowing if you were relying on it for near-term cash. Whether you receive the full balance also depends on the will. Our detailed guide on what happens to KiwiSaver on death and the estate covers the thresholds and the process.

KiwiSaver is a long-term savings scheme. Government contributions, contribution rates, withdrawal rules and tax (PIR) settings are set by the Government and can change. Figures are correct as at 18 March 2026. Check current rules at ird.govt.nz, kiwisaver.govt.nz and sorted.org.nz, and the relevant scheme's Product Disclosure Statement.

Who do you need to notify — IRD, banks, providers, Work and Income?

There is no single switch that tells everyone. You work through the organisations one at a time, and most are used to these calls.

• Inland Revenue (IRD). You can notify IRD of the death so the deceased's tax affairs and any final return are dealt with. The one notification also updates KiwiSaver and Working for Families records, some of which a survivor may need to change ⁷.
• Banks. Tell each bank the deceased held accounts with. Jointly held accounts usually continue in the survivor's name more simply than accounts held solely in the deceased's name, which generally form part of the estate.
• KiwiSaver and other investment providers. Notify each provider so the account can be closed and released through the estate ⁵.
• Insurers. Contact the life, health and general insurers to lodge any claims and to update or cancel policies ¹⁰.
• Work and Income. If either of you receives NZ Super or a benefit, tell Work and Income so payments are corrected and any bereavement help is assessed ³⁸.

A short written list of the deceased's accounts, providers and policies — built up as you go — makes this far less repetitive. Many people keep one running note and tick organisations off as they are contacted.

What financial support exists, including NZ Super and bereavement help?

Two kinds of help are worth knowing about: short-term bereavement assistance, and the change to ongoing NZ Super.

Funeral Grant and bereavement help. Where the estate cannot meet essential funeral costs, Work and Income may pay a Funeral Grant of up to $2,697.43 toward things like a casket, cremation or burial fees, a hearse, and death or funeral notices ¹⁸. It is income- and asset-tested against both the surviving partner and the deceased, with the first $2,351 of assets disregarded ¹. There is also an income test on the survivor: for example, a deceased person's partner aged 18 or over with no children must have annual income before tax below $36,548.20 to qualify ². Some people may also receive a one-off bereavement payment to help with immediate costs after a death, subject to eligibility ⁸. Because the tests are detailed, it is worth checking directly with Work and Income rather than assuming you do or do not qualify.

NZ Super moves to the single rate. If you and your partner both received NZ Super, your payment changes after a death. NZ Super is paid per person at the couple rate while both qualify; the survivor then moves onto the higher single rate, but the household total still falls because two payments become one.

So household NZ Super falls from about $1,656.68 to $1,076.84 a fortnight once a partner dies — a drop of roughly a third — even though many fixed household costs barely change. These rates took effect on 1 April 2025; they are due to rise again from 1 April 2026 ³⁴. Our guide to NZ Super rates and eligibility sets out the full schedule, and the income drop when a partner dies covers why spending does not fall as fast as income.

How are joint accounts, debts and the mortgage handled?

How something is owned usually decides how it is handled.

Joint assets. Bank accounts and property held jointly with a right of survivorship generally pass to the surviving owner without going through the estate, which is why a joint everyday account can keep household bills running while the rest is sorted.

Solely held assets. Anything in the deceased's name alone — a sole bank account, a car, an investment — usually forms part of the estate and may need probate before it can be released ⁶.

Debts. Debts do not disappear on death, but they do not automatically transfer to a surviving partner either, unless the debt was joint or guaranteed. A solely held debt is generally settled from the estate before anything is distributed. A jointly held mortgage or loan typically continues with the surviving borrower, who remains responsible for it.

The mortgage. If the home loan was in both names, it continues, and the survivor needs to be able to keep up the repayments. This is exactly the gap life cover is often arranged to fill: a payout that clears or reduces the mortgage so the survivor is not forced to sell under pressure. There is rarely any rush to sell the family home in the first weeks; that decision is usually better made once the income picture has settled.

Smiths Financial does not provide legal or estate-administration advice. For wills, probate, debts and how assets pass, please consult a lawyer.

When does the estate and probate process come in?

Probate is a grant from the High Court that confirms the executor's authority to deal with the estate. It tends to come into play once you start trying to release the deceased's solely held assets.

As a general rule, probate is required before a bank or provider will release a deceased person's solely held assets above about $15,000 held with any one institution; assets below that level can often be released without it ⁶. A KiwiSaver balance above the relevant threshold, for instance, usually waits for probate before the provider pays it to the estate ⁵⁶.

The practical sequence is usually: locate the will, identify the executor (which may be you), apply for probate if the estate requires it, then gather in the assets, pay any debts, and distribute what remains under the will. If there is no will, a family member applies for letters of administration instead, and the estate follows the intestacy rules. This is legal work, and most people use a lawyer for it. Having the will, recent statements and a list of assets ready makes it far smoother — our estate documents checklist covering wills and EPOAs is a useful starting point.

How do you rebuild your own financial plan afterwards?

Once the immediate paperwork eases, there is a quieter task: working out what your own finances now look like as one person rather than two. There is no rush, and it is usually better done after the estate has settled than in the first raw weeks.

A few things people commonly look at:

• Rework the budget on a single income. Household income has often dropped — to the single rate of NZ Super, or with the loss of a partner's wage or business income — while many fixed costs have not. Mapping the new figures shows whether there is a gap to plan around.
• Review your own KiwiSaver and the fund it sits in. Your time horizon and risk tolerance may have changed. Note too that the minimum KiwiSaver contribution rate is 3% as at this article, rising to 3.5% from 1 April 2026 ⁹, which affects what goes in if you are still working.
• Check your own insurance. Cover that made sense as a couple may need adjusting now that circumstances have changed.
• Update your own will, beneficiaries and any enduring powers of attorney. These often name the partner who has died and need revisiting.
• Avoid big, irreversible decisions while grieving. Selling the home or moving large sums is rarely urgent and is usually better left until things feel clearer.

This is general information rather than a plan for any one person. What fits depends on your assets, your health, your family and what you want next.

Frequently asked questions

What is the first financial thing to do when a partner dies in NZ? Register the death and get the death certificate, usually through the funeral director, and order a few certified copies because each bank, insurer and provider will want to see one. Almost everything else — claims, accounts, NZ Super, probate — can wait until the days after the funeral. If the estate cannot pay for the funeral, ask Work and Income about a Funeral Grant early ¹⁸.

How do I claim on my partner's life insurance? Contact the insurer as soon as is practical, then supply a death certificate and a completed claim form ¹⁰. The insurer assesses the claim and pays the benefit to the nominated beneficiary or policy owner, or to the estate if no beneficiary was named ⁵. Whether a claim is paid depends on the policy terms and the disclosure made when it was taken out. If an adviser arranged the cover, they can usually manage the claim for you.

Does my partner's KiwiSaver come straight to me? No. On death the account is closed and the full balance is paid to the estate, then distributed under the will or, if there is no will, under the intestacy rules ⁵. A smaller balance can often be released by the provider without a court grant, while a larger one usually waits for probate ⁶. Whether you receive the full amount depends on the will.

How much is the Work and Income Funeral Grant? Up to $2,697.43 toward essential funeral costs where the estate cannot pay ¹. It is income- and asset-tested against both the survivor and the deceased, with the first $2,351 of assets disregarded, and there is an income test on the survivor — for example, a partner aged 18 or over with no children must have annual income before tax below $36,548.20 to qualify ¹². Check directly with Work and Income, as the tests are detailed.

What happens to our NZ Super when one of us dies? The survivor moves from the couple rate to the single rate. Household NZ Super falls from about $1,656.68 to $1,076.84 a fortnight, a drop of roughly a third, because two payments become one even though the single rate per person is higher ³⁴. Tell Work and Income so your payment is updated. These rates applied from 1 April 2025 and are due to rise again from 1 April 2026.

Do I have to pay my deceased partner's debts? Not personally, unless the debt was joint or you guaranteed it. A solely held debt is settled from the estate before anything is distributed. A joint mortgage or loan continues with the surviving borrower, who remains responsible for the repayments. How debts are handled is a legal matter, so confirm the detail with a lawyer.

This article is general information only and is not personalised financial advice. It does not take into account your particular financial situation, goals or needs. Before acting, consider whether it's right for you and seek advice tailored to your circumstances. Craig Smith Business Services Ltd (FSP712931), trading as Smiths Financial, holds a Class 2 licence issued by the Financial Markets Authority and is a member of the Financial Dispute Resolution Service (FDRS). Smiths Financial does not provide legal or estate-administration advice; for wills, probate and estate matters please consult a lawyer. Written by Henry Smith, Financial Adviser; reviewed by Craig Smith, Principal Adviser. Last reviewed 18 March 2026.