How to handle financials after the loss of a partner

Losing a partner is incredibly hard, bringing both emotional pain and practical concerns. Sorting through financial aspects afterwards can feel overwhelming. From wills to figuring out what happens with KiwiSaver funds, this guide offers straight-talking advice to help you navigate financial planning decisions after saying goodbye to your other half.

What to do with financials after the loss of a partner

Managing finances during a difficult time can add an extra layer of stress when you're already navigating so much. To help make things a little easier, here are some key first steps to consider when someone passes away:

  1. Gather important papers: Locate your partner's will, insurance policies, bank statements, superannuation information, and property deeds.
  2. Let people know: Contact the banks, KiwiSaver providers, insurance companies, and relevant government departments like the Ministry of Social Development (MSD) and Inland Revenue (IRD).
  3. Look into a Funeral Grant: Work and Income offers help with funeral costs. You may be eligible for a Funeral Grant. Eligibility depends on the estate's assets and the applicant's circumstances.
  4. Look into other support: Depending on your situation, you might be eligible for other assistance, such as the Supported Living Payment, especially if you're caring for children or have health issues.
  5. Talk to experts: A good financial advisor and a lawyer specialising in estates can provide invaluable guidance during this period.

Understanding your financial options after a partner's death

Losing a partner brings many changes, and financial matters are often one of the biggest adjustments. While each relationship, depending on the status will have different matters to settle, below are a few general factors that will require action after the loss of a partner:

  • Joint bank accounts: Depending on the set up of the joint account and bank, once proof of death has been received the account may be transferred to the surviving customer. This may vary depending on the bank as well as the type of account i.e. home loan, credit or debit card.
  • Bills and loans: Generally, you are not liable for your partner's personal debts unless you co-signed for the loan or it's secured against a joint asset. However, the estate may still be responsible for settling these debts. It is always important to check or update ongoing joint bills that may be affected due to the death and transfer these into your name.
  • Insurance claims: File any life insurance claims promptly, as many insurers have a specific window of time in which you are required to alert them of the death. You will usually need a death certificate.
  • The family home: Deciding whether to keep or sell the home is a major decision. Consider your financial situation, emotional well-being, and maintenance costs. If jointly owned as joint tenants, it typically passes directly to the surviving owner. If owned solely by your partner or as tenants in common, it forms part of their estate.
  • Review your budget: Your household income and expenses will likely change, so it's wise to review and potentially adjust your budget.

Managing superannuation and KiwiSaver after a partner passes

Understanding what happens to retirement savings, such as KiwiSaver, after a loved one passes away can provide clarity and peace of mind during a challenging time.

Knowing the process and what to expect can help you make informed decisions and navigate the next steps with confidence.

KiwiSaver funds

These savings become part of the deceased's estate and are distributed according to their will or the rules of intestacy if there is no will (where the courts decide how the assets will be distributed).

Accessing KiwiSaver

When someone with a KiwiSaver account passes away, the provider must be notified, typically requiring a death certificate. The executor or administrator of the estate then applies to the provider to access the funds.

The timeframe for releasing the funds varies – if probate or Letters of Administration are needed (usually for balances over $15,000), the process can take six months or more. Smaller balances may be processed more quickly, but this depends on the provider’s requirements, so it’s best to check directly with them. Once released, the funds are transferred to the estate for distribution.

NZ Superannuation

NZ Super payments stop when someone passes away, which can add another layer of uncertainty during an already difficult time. If you’re a surviving partner, you may be eligible to apply for your own NZ Super payments. Checking your eligibility and applying as soon as possible can help provide some financial stability as you navigate this new chapter.

What happens to financials if your partner had no KiwiSaver

If your partner wasn't a KiwiSaver member, their estate will consist of other assets like bank accounts, property, investments, and insurance policies. These assets are distributed according to the will or intestacy laws. In this situation, life insurance can be helpful, as it may provide funds quicker than waiting for the estate settlement. It can assist with immediate expenses, such as funeral costs, and help your loved one maintain their lifestyle. 

Steps for estate planning and financial decisions after loss

Reviewing your own estate plan is vital after losing a partner, particularly for those in their later years. Public Trust research from 2023 indicated that only 50% of adult New Zealanders had a will, suggesting a significant number still need to arrange one.

Key steps to consider:

  • Update your will: Ensure your will reflects your current circumstances and wishes.
  • Sort Enduring Powers of Attorney (EPA): Appoint someone you trust to make financial or health decisions on your behalf if you become unable to. Review any existing EPAs.
  • Check beneficiaries: Update beneficiary nominations on any insurance policies, potentially KiwiSaver (if applicable for future contributions), and other accounts where possible.
  • Consider trusts: Discuss with a professional whether an estate planning trust could be beneficial for managing assets or protecting them for beneficiaries.
  • Organise your documents: Keep all your important financial and legal documents organised and ensure a trusted person knows where to find them.

Taking these steps helps secure your financial future and provides peace of mind.

Frequently asked questions

Here are some commonly asked questions that may help clarify things during a challenging time. Navigating finances and legal matters after the loss of a partner can be overwhelming, but understanding your options can offer some reassurance.

  1. Am I stuck with my spouse's debt? Not usually, unless you were a joint owner of the debt (e.g., co-signed a loan) or it's secured against a joint asset. The estate is typically responsible for paying debts first.
  2. Are there grants for widows/widowers? You might qualify for financial assistance such as the Funeral Grant, the Supported Living Payment, or accommodation assistance, depending on your circumstances.
  3. How long does it take to access deceased KiwiSaver funds? The timeframe varies significantly. If probate or Letters of Administration are needed (often for balances over $15,000), it could take 6 months or more. For smaller balances, it might be quicker, but it depends on the provider's process.
  4. What happens to our house? If owned as joint tenants, the surviving owner usually inherits it automatically. If owned solely by your partner or as tenants in common, their share becomes part of their estate to be distributed according to the will or intestacy rules.

Final thoughts: Navigating financial recovery and estate planning

Losing your life partner can profoundly change your life, including your financial situation. Adjusting to a new financial reality takes time, but with the right support and planning, you can build security for the future.

Seeking advice from financial and legal professionals experienced in estate matters can be helpful. Various organisations also offer support and practical guidance for those who have been widowed.

By carefully managing your finances and updating your own estate plan, you honour the life shared with your partner and create a secure legacy. If you're unsure how to cover the costs, Seniors Funeral Insurance could help ease the financial burden. Visit our website to explore policy options and request a quote today.

1 Jun 2025