Relationship Property After Death in New Zealand

The PRA Does Not End When a Partner Dies

The Property (Relationships) Act 1976 does not only apply to separating couples. It also governs the division of relationship property when one partner dies. The surviving partner has the right to elect between what the deceased's will provides and what the PRA would give them — and the PRA's 50/50 equal-sharing default often delivers more than the will.

This right of election exists regardless of what the will says. A will that leaves the surviving partner a modest bequest while directing the bulk of the estate to children from a previous relationship can be overridden by the PRA claim.

The Surviving Partner's Right to Elect

Under Part 8 of the PRA, when one partner in a qualifying relationship (marriage, civil union, or de facto relationship of three or more years) dies, the surviving partner can choose one of two paths:

Option B: Accept the will. Take whatever the will provides (or the intestacy share if there is no will), plus any other entitlements under the will. The PRA is not invoked.

Option A: Elect under the PRA. Claim the 50% equal share of all relationship property that the PRA provides, as if the couple had separated. The surviving partner gives up their entitlements under the will and receives their PRA share instead.

The surviving partner must make the choice in writing, with a lawyer's certificate confirming that its effect and implications were explained. The notice must be sent to the administrator or executor of the estate, or to the High Court if administration has not been granted in New Zealand. For most estates, the deadline is six months after the grant of probate or letters of administration; for a small estate, it is the later of six months after death or six months after the grant if the grant occurs within that period.

When the PRA Election Delivers More

The PRA election is most valuable when the deceased's estate plan directed relationship property away from the surviving partner — to children from another relationship, to a family trust, or to other beneficiaries. The equal-sharing default under the PRA means the surviving partner is entitled to half of all relationship property: the family home, savings, KiwiSaver, investments, and chattels accumulated during the relationship.

If the will left the surviving partner the house but directed all investment property and savings to other beneficiaries, the PRA election may deliver a substantially larger share.

The Interaction With Trusts and Estate Planning

Family trusts complicate this area significantly. Assets transferred into a trust during the relationship are technically owned by the trust, not the deceased. Sections 44 to 44C of the PRA can address certain trust dispositions, including compensation under Section 44C where relationship property was disposed of to a trust after the relationship began, the disposition has the effect of defeating one partner's rights, and Section 44 does not apply.

Couples who want certainty — protecting both the surviving partner's rights and their wishes for children from previous relationships — can use a contracting-out agreement under Section 21 during their lifetime to specify what will happen to relationship property if one dies. The agreement must comply with the statutory formalities and should be coordinated with their wills and other estate planning.

Practical Implications

If you are separating and your partner dies before the property division is complete, get legal advice promptly. The death can change the procedure; Part 8 may require a surviving-partner election, and the deceased partner's personal representatives may be involved in any remaining relationship-property claim.

If you are not separating but want to understand how your estate plan interacts with the PRA, the key question is whether your will gives your partner at least as much as the PRA would. If it gives less, your partner can override your wishes by electing under the PRA.

The NZ Financial Split Navigator covers the PRA framework that determines relationship property classification — the same classification that applies whether the trigger is separation or death.

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