Kayla Rutherford

Qualifications

LLB (Hons), University of Waitkato 2025

Contact

M: +64 21 683 813
E: kayla.rutherford@hobec.co.nz

Kayla Rutherford is a Law Clerk in our Property and Commercial team.

Kayla completed her Bachelor of Laws with Honours at the University of Waikato, gaining experience as a law clerk and legal assistant during her studies.

She is a Bay of Plenty local, having gone to school in Mount Maunganui and is looking forward to starting her career here. Outside of work, she enjoys spending time with friends, travelling and playing sport.

Kayla Rutherford's Expertise

Property Law

Commercial Law

Kayla Rutherford's News & Resources

Update to Probate Threshold amount

Effective 24 September 2025, the threshold for informal administration under the Administration Act 1969 has increased from $15,000 to $40,000. This long-awaited change (which had not been updated since 2009) brings significant relief for families dealing with modest estates. Administration without a Grant from the Court The increase in threshold allows certain financial assets to be released when someone dies without requiring a formal grant of probate or letters of administration. The process is governed by sections 65(2) and 65(5) of the Administration Act 1969 and applies only to specific institutions and asset types. What assets are covered? The new $40,000 threshold applies to financial assets held by: Superannuation fund trustees Societies Banks Employers Local authorities Trustee corporations Kāinga Ora ACC MSD The Crown These institutions may release funds without probate, provided they are satisfied the owner has died and the recipient is one of the eligible persons listed in section 65(2)(a)–(e). Life insurance policies under section 65(5) are also covered by the new threshold. What is not covered? The increase does not apply to: Shares and debentures (threshold remains $15,000) Non-financial assets such as real estate, vehicles, jewellery or artwork Cryptocurrency, as exchanges are not listed institutions under the Act If these assets are involved, a formal grant is still required. Does it apply to deaths before 24 September 2025? Yes. The Act specifies that the new threshold applies regardless of the date of death, as long as no grant has already been issued. Families may choose to wait until after 24 September 2025 to benefit from the new threshold. Checks and balances Institutions retain discretion and may refuse informal administration. Policies vary and may evolve in response to the change. Practitioners should be aware that institutions are protected under section 65(6) for payments made in good faith. Funeral expenses: are they extra? No. While banks may release funds directly to funeral directors, this is not added to the $40,000 threshold. The prescribed amount is assessed as at the date of death. What does this mean for you? If you are managing a loved one’s estate, or advising on estate planning, the higher threshold may offer a simpler and faster pathway where assets are modest. It may also reduce legal costs in some cases, while also reducing the administrative burden on the High Court. However, it remains essential to have a valid Will and proper estate planning in place – especially as more estates are growing in value or involve trusts, cross-border assets or complex family structures. If you are unsure whether a grant of administration is needed, our succession and estates team is here to help.