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Health Issues

Estate Planning and the Unexpected: A Family Law Story

Employment, Estate, Health Issues, House, Latest news, Social Media, Trusts
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A tear trickled down Luke’s face as the hearse carrying his late father, Steve, drove away from the funeral home and down the road. It had been a beautiful service and his brother Bob, who owned a burger bar, provided some excellent catering. Steve had been a wonderful father, and had prepared for this moment by getting his Will and Enduring Power of Attorney sorted out nice and early.

As Steve’s executor, Luke immediately set about administering his father’s estate. It was an immense job, so he enlisted the assistance of Edmonds Judd. They met with him and explained the administration process and gathered from him an idea of Steve’s assets and liabilities. They applied to the High Court for Probate and contacted the banks, insurers and real estate agent on Luke’s behalf. They found the odd liability, such as a small credit card debt, and closed any outstanding accounts.

Luke was relieved. This was starting to look easy!

He put down the phone after talking to his helpful solicitor and poured himself a nice cup of tea. Then, just as he was sitting down, he heard a knock on the door.

“Who could that be?” he wondered aloud. He wasn’t too surprised, as he had had many callers recently offering their condolences. He was surprised however, to open the door to see himself staring back at him. Luke blinked in surprise.

“Luke”, the doppelganger said. “I am your brother. Your long-lost twin brother, as a matter of fact. I was adopted when we were just babies. I’m guessing from the look on your face that Steve never told you?”

Luke was shocked. The stranger was indeed identical to him, right down to the freckles on his nose and the way he turned up the cuff on his jeans. The stranger continued.

“My name is Han, and it’s nice to meet you. Listen, I know this is awkward timing, but my understanding is that Steve left behind a sizable estate. I’m going to need to some of that money, as I have significant gambling debts I need to pay off. That won’t be a problem, right? After all, it’s only right that I get a slice of the pie”.

Luke invited Han in for a drink, and pondered what to do next. Once Han had taken a few old photos of Steve and left, Luke picked up the phone and called his solicitor back, explaining the whole thing. His solicitor was very helpful.

“You see Luke, sometimes children who are left out of their parent’s Will can make a claim under the Family Protection Act 1955. The law says that parents have a moral duty to provide for their children. However, because Han was adopted out as a child, he won’t be able to successfully make a claim. The Adoption Act 1955 changes the legal relationship between adopted child and birth parent. Steve did not have to provide for Han in his Will”.

“I don’t know,” said Luke. “Is it really fair that Han not get anything out of the Estate?”

“Well, if you and the other beneficiaries of the Estate feel that way, you can enter what’s called a Deed of Family Arrangement”. It would record that the beneficiaries have come to an agreement to do something different to what’s in the Will, and that would allow us to make a distribution to Han. You would need to get all of the beneficiaries to agree, though”.

Luke thanked his solicitor and hung up the phone. He had a lot to think about. He decided to give his brother Bob a call, to see what he thought. But Bob was having his own problems at his burger bar…

 

Jamie Graham

Steve’s Big Decision: He’s ready for the next chapter – Retirement

Estate, Health Issues, House, Kids, Latest news, Media, Property, Relationships, Retirement
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Brought to you by Edmonds Judd – Your Life Your Lawyers

 

Steve has spent the last 45 years building a life he was proud of—raising a family, growing his business, and working hard every step of the way. But now, for the first time in decades, he was thinking about something new: retirement.

 

The thought was both exciting and overwhelming. Should he downsize to a smaller home? Maybe move into a retirement village? What about his Will—did he have one and if so, was it up to date? And who would make decisions for him if one day he couldn’t?

 

That’s when Steve decided it was time to talk to someone who understood the journey ahead—someone who specialised in elder law.

 

At Edmonds Judd, Steve found the guidance he needed. The team took the time to sit down with him, listen to his concerns, and explain everything. This helped Steve put a clear, confident plan in place—updating his Will, setting up Enduring Powers of Attorney, and walking through the legal details of retirement village living. Most importantly, they made sure Steve’s wishes—and his family—were protected.

 

Steve created an estate plan that matched his life now—not the one he had twenty years ago. Steve knew that his family would be protected, and that his wishes would be carried out no matter what the future held.

 

He learned that retirement planning wasn’t just about money—it was about peace of mind.

 

“It’s not just legal paperwork,” Steve told his children Luke and Sally one evening, “It’s making sure you’re all taken care of, no matter what.”

 

Thanks to Edmonds Judd, Steve now looks forward to his next chapter in his life with confidence and clarity.

Rachael Beattie

Over the fence

Health Issues, House, Latest news, Media, Relationships
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Employer obligations: mental health

As an employer, you have a duty of care for both the physical and mental health of your employees’ health.

Health and Safety at Work Act 2015 (HSWA): Under the HSWA, you have an obligation to minimise the stress and mental health impacts that arise from within your workplace. This includes monitoring increased workloads to ensure your employees are not overexerted and stressed, investigating any bullying claims and ensuring a safe working environment.

Employees’ rights: Your employees are not obliged to disclose a mental health condition unless it will directly impact their ability to safely perform their role. If you ask about a mental illness that directly impacts their ability to perform their role safely, they must tell the truth. There is a risk of disciplinary action if they do not provide you with the correct information.

You cannot discriminate against any employee (or potential employee) if they have a mental illness. These discriminations could be:

  • Not offering a job due to their disclosed mental illness
  • Not promoting as a consequence of their mental illness, or
  • Providing less favourable terms of employment as a result of their mental illness.

Employee action for perceived discrimination: If your employee believes they are being discriminated against, they may wish to discuss this with you to try and resolve the matter. If this is not successful or not appropriate, they can seek support from the Employment Mediation Services, raise a personal grievance or make a complaint to the Human Rights Commission.

What can employers do? You can help to facilitate a positive working environment and take steps to protect your employees by:

  • Providing support if a traumatic work event occurs
  • Offering flexible working environments including hours/days worked and the location for work to be completed by, for example, using other machines
  • Allowing time off to attend appointments
  • Providing resources such as counselling, work mentoring or stress management courses, and
  • Changing your employee’s duties.

It is important that you talk with your employees and take necessary steps to support them the same way you should protect their physical wellbeing.

Firearms reform 2025

Commercial, Employment, Health Issues, Latest news, Media, News
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Government considers current legislation to be outdated and overly complicated

The government is currently undertaking a comprehensive reform of our firearms laws; it aims to modernise the Arms Act 1983 which it considers to be outdated and overly complicated. The overhaul is the fourth phase of a commitment to reform the firearms regulatory system following on from three previous phases implemented after the 2019 Christchurch mosque shooting.

Public consultation on the proposed changes took place earlier this year.

 

Proposed changes

Key proposals include:

  • Rewriting the Arms Act 1983 entirely to create a more coherent and effective legislative framework that balances public safety with the rights of lawful firearms users
  • Strengthening Firearms Prohibition Orders, expanding the criteria and allowing the courts to impose Orders on gang members and associates convicted of drug, firearms or violent offences
  • Reviewing the Firearms Registry to assess its effectiveness and identify areas for improvement. The government aims to ensure it is promoting public safety without imposing unnecessary burdens on lawful firearms owners
  • Transferring the Firearms Safety Authority (to be renamed the Firearms Licensing Authority) from the responsibility of New Zealand Police to the oversight of another government entity. The government believes this will enhance independence and effectiveness of firearms administration, and
  • Amending the regulations of shooting clubs and ranges to ensure their facilities are operating safely and compliantly while supporting legitimate activities of firearms enthusiasts.

 

Potential benefits

The proposed reforms have several potential benefits, including:

  • Improved public safety with stricter controls and strengthened Firearms Prohibition Orders
  • Better regulation and oversight to modernise outdated laws
  • More effective firearms licensing through an independent Firearms Licensing Authority, allowing police to focus their resources more on illegal firearms and gang-related gun violence rather than administrative licensing work
  • Enhanced gun owner responsibilities through increased requirements for safe storage, record-keeping and reporting, and
  • Stronger measures against gun trafficking through stricter background checks, licensing and a well-regulated system.

With each benefit, however, shortcomings follow. Potential drawbacks include:

  • Possible overreach and bureaucracy leading to inefficiencies, delays and higher administrative costs
  • Limited impact on criminals and gangs given most gun crimes involve illegally obtained firearms, unaffected by strict laws. Police unions have expressed concerns that moving licensing away from the police could weaken police ability to monitor gun-related crime
  • Compliance challenges, with some gun owners struggling to comply with new laws due to lack of awareness or financial barriers, such as affording secure storage or meeting new licensing requirements
  • Potential for unintended consequences, such as over-regulation leading to more non-compliance or a larger black market, and
  • Farmers and pest controllers who rely on firearms for work may face unnecessary restrictions affecting their business operations.

Federated Farmers has been particularly vocal about the rewrite, noting that the changes over the previous government’s term were ‘a whole lot of really silly, impractical amendments’ that have made it harder for people to access firearms.

Farmers have noticed how those changes have made it harder but cannot identify anything that has made it easier. Farmers have a genuine need for firearms and gun laws need to be more straightforward for those who need reasonable access to firearms.

The government has now completed public consultation; it aims to pass the new firearms legislation before the end of its current term in 2026.

Emissions Trading Scheme

Commercial, Employment, Estate, First Job, Health Issues, Online, Property
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A change in approach?

The Emissions Trading Scheme (ETS) will turn 17 years old in September. An integral part of the Climate Change Response (Emissions Trading) Amendment Act 2008, the ETS has undergone significant change throughout its existence.

 

What is the ETS?

The ETS is New Zealand’s main tool for reducing greenhouse gas emissions. It essentially works by requiring participating businesses to measure and report on their greenhouse gas emissions. Businesses that participate in the scheme must surrender what is known as an ‘emissions unit’ for each tonne of carbon dioxide that they emit. One tonne of CO2 will cost you one emissions unit.

Over time, the government will reduce the number of units that are supplied into the ETS. The effect of this is that emissions units increase in demand as participating businesses buy and sell emissions units from each other. The price of emissions units in the ETS will (in theory) trend upwards, helping New Zealand to steadily move towards the goal of being a net zero emitter of greenhouse gas by 2050.

 

Recent developments in the ETS

There has been some concern regarding the conversion of productive farmland into forestry in order to gain emissions units. The government has announced changes to the ETS; its aim is to strike a balance between achieving New Zealand’s climate goals, and protecting the longevity of our most profitable farmland.

The government has signalled that the proposed changes to the ETS will be formally introduced to the House this year, with the new rules expected to come into force by October 2025.

 

All trees created equal?

The most significant proposed change to the ETS is the temporary prohibition of the registration of exotic forestry (non-native) for emissions units on Land Use Capability (LUC) 1–5 farmland. LUC separates land into eight categories based on an assessment of the land’s capability for use. LUC Class 1 land is the most versatile, with LUC Class 8 land being the least versatile.

At present, any tree can be planted on any farmland to earn emissions units (provided the tree species planted can reach at least five metres in height). This means there is no incentive to prioritise the planting of native trees over the planting of exotic species, such as the Radiata pine.

The proposed changes will also require ETS participants to exercise greater discretion in choosing which areas of farmland to plant on; should you wish to plant an exotic species, you must do so on your less productive land.

 

A flexible approach

The proposed rules are not entirely hard and fast as there is some wriggle room for ETS participants. Up to 25% of LUC Class 1–6 land on a farm can be used to plant exotic forestry for the purpose of registering it under the ETS.

The proposed new rules have also scrapped plans to include agricultural processors (meat processors, dairy processors, nitrogen fertiliser manufacturers and importers, live animal exporters) in the ETS. Agricultural processors had been due to enter the ETS from 1 January 2025, but the passing of the Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Bill on 26 November 2024 has stopped this.

 

Why the changes?

The proposed changes clearly signal the government’s desire to promote the planting of native species. It appears, however, that consideration has been given to the idea that ETS participants have benefitted from the planting of exotic species that can be planted en masse and grow quickly. This practice will remain, with the caveat being that it will need to take place on less productive farmland.

Keep a Close Eye: Your Responsibility for Grazed Livestock

Animals, Health Issues, Latest news, Media, News, Online
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When your livestock are grazing away from your property, your legal obligations as their owner under the Animal Welfare Act don’t go on holiday. It’s your duty to ensure their care meets the required standards, and that means staying actively involved in their well-being.

Here’s why regular checks and oversight are non-negotiable:

  1. Weighing and Monitoring
    Insist that the grazier regularly weighs your animals and provides detailed reports. But don’t just rely on the numbers—attend these weighing sessions periodically to verify the accuracy of the data and get a firsthand look at your animals’ condition.
  2. Feed and Water
    Livestock require enough feed to maintain good health and condition. Check that they have consistent access to high-quality, clean water to prevent dehydration and support overall well-being.
  3. Safe Surroundings
    Ensure the grazing environment is safe, free from hazards, and appropriate for the type of stock being grazed. Unsafe conditions can lead to injuries, poor health, and stress for your animals.
  4. Signs of Illness or Injury
    Early detection is key to preventing long-term issues. Look for signs of lameness or other health concerns. Timely treatment can make the difference between a full recovery and chronic problems like susceptibility to bone damage or ongoing mobility issues.
  5. Correct Handling
    Observe how your animals are being handled. Poor handling practices can lead to stress, injuries, or behavioural issues. It’s your responsibility to ensure they’re treated with care and respect.
  6. Accountability
    Don’t take a “set and forget” approach to sending livestock out for grazing. Visit them regularly to ensure the care described by the grazier matches the reality. This keeps the grazier accountable and ensures you’re meeting your obligations as an owner.
  7. Development of Young Stock
    For young stock, this period is critical to their growth and development. Regular monitoring ensures they’re meeting weight targets, growing at a healthy pace, and building the foundation for a productive future.

Ultimately, livestock owners must remain hands-on, even when animals are in someone else’s care. Regular checks safeguard their well-being and ensure you’re compliant with the Animal Welfare Act. After all, your animals rely on you to advocate for their welfare, wherever they are.

Resting in peace? Where your Will might fall short

Estate, Health Issues, Kids, Retirement
0

No one likes to contemplate their death. If we do think about the unthinkable, we like to hope that we will go as peacefully as possible with nothing left to worry about. Adequate estate planning can save your loved ones a great deal of time, money and stress while they are grieving you.

Part of your estate planning might include deciding what you want to happen to your remains after death. You may wish for your body to be interred in a family plot, have your ashes scattered somewhere special or have your remains disposed of in accordance with your cultural practices.

It may come as some shock then, that while your Will can contain instructions regarding your remains, these instructions are not necessarily binding. This can be a problem when your executors and members of your family are at odds as to what to do with your remains.

In New Zealand, the executor has both the right and the duty to make decisions about the remains of the deceased. However, there are a range of different factors that the executor needs to consider when making their decision, including cultural, religious and spiritual practices as well as the views of immediate and wider family. If it can be shown that the executor did not take all relevant considerations into account, then there may be grounds for the executor’s decision to be challenged in court.

Your wishes are of course relevant, but your executor may (and is entitled to) weigh your wishes up against any other factors that your wider family raises.

To hopefully avoid any disagreements and potential litigation after you have passed, you may wish to have a conversation with your executors and your loved ones now. This helps ensure everyone is on the same page about what should happen following your death and increases the likelihood that the wishes you record in your Will will be followed.

Edmonds Judd can assist you with this by drafting your Will and providing advice about your estate planning.

Jamie Graham, Law Clerk

Employee burnout

First Job, Health Issues, Your Own Business
0

Acknowledge and address this

The effects of burnout and work-related stress are an issue that both employers and employees should acknowledge and address.

 

Under the Health and Safety at Work Act 2015, organisations have a clear obligation to prevent harm not only to their employees’ physical health, but also their mental health.

 

 

What is burnout?

‘Burnout’ is the result of chronic workplace stress that is not successfully managed. The World Health Organization has stated burnout is an occupational phenomenon and it is not classified as a medical condition. Although burnout is not depression, it is recognised as a major risk factor for depression and anxiety.

 

Burnout affects people differently and the symptoms of burnout are varied. Some common symptoms include:

  • Exhaustion: Feeling drained and emotionally exhausted
  • Low productivity: Negativity about work or being unable to concentrate. This can affect the ability to carry out normal, everyday tasks at work
  • Increased mental distance from one’s job: Becoming cynical about work and distancing from one’s colleagues, and
  • Physical issues such as insomnia, headaches or stomach aches.

 

 

Employers’ obligations

You must be aware of your obligations to manage health and safety risks, including supporting any of your employees who are struggling mentally, and take steps to address the issues.

 

Prevention, as they say, is always better than cure, and in terms of preventing burnout you have a great deal of influence in setting the culture of your workplace. Burnout is often the result of an unhealthy workplace culture. Workplaces that have unmanageable workloads, unreasonable deadlines and lack of support can all contribute towards burnout. You should therefore proactively consider the following:

  • Are your employees given achievable goals?
  • Are there established processes to enable your employees to raise any issues and concerns they might have?
  • Is training provided to both your managers and employees on how to deal with mental health issues?

 

If a staff member discloses that they are struggling with burnout, you should take proactive steps to understand what is causing the issue and what is required to address it. It may be necessary to get advice from a medical professional (it is important to maintain confidentiality in line with your employee’s wishes and any privacy requirements).

 

In addressing your employee’s burnout, you should look for a solution that works for you both. It is prudent that all decisions and any agreements between you both are recorded in writing as evidence of the steps that have been taken.

 

Aside from the legal considerations of your health and safety duties, from a business perspective there is strong evidence that investing in the health and wellbeing of your staff provides a substantial return on investment. This is not surprising, given that burnout reduces productivity and is associated with high staff turnover. Taking steps to avoid employee burnout is good for business.

 

 

Feel burnt-out as an employee?

It is important you talk to someone at work as soon as possible. Although it may be difficult to talk about stress and burnout, it is vital that your workplace becomes aware of it and is given an opportunity to stop the situation from getting worse. By asking for help and support, it enables your employer to make necessary adjustments. This may include rebalancing the demands and responsibilities of your role, cutting back on unnecessary tasks or establishing a set of objectives to work towards.

 

 

A recent court case

Burnout was the issue in an Employment Relations Authority (ERA) case[1] in which an employee successfully argued that he was constructively dismissed because his employer had failed to provide him with a safe working environment.

 

The employee had raised concerns about his work-life balance and even informed his manager that he was ‘burnt out’ and could not continue due to being ‘broken by the workload.’ When his employer did not take prompt action to address these issues, the employee resigned.

 

The ERA held that it was reasonably foreseeable that the employee would resign unless his burnout concerns were addressed, and ruled that his employer should have taken more formal and proactive steps to understand their employee’s mental health situation. As a result, significant financial remedies were awarded to the employee, including $25,000 as compensation for hurt and humiliation.

 

 

Employers take note

Employers have a duty to protect their employees in health and safety issues, and this includes their mental health. A person’s work environment can have a significant impact on their mental wellbeing and, as a result, employers must take prompt, meaningful action should staff burnout arise.

 

If someone on your staff is struggling with burnout, it is important that they communicate this to you or their manager. For some guidance on steps to help avoid employee burnout, please contact us. We are here to help.

 

[1] Perry v The Warehouse Group Limited [2023] NZERA 773.

 

 

 

DISCLAIMER: All the information published in Fineprint is true and accurate to the best of the authors’ knowledge. It should not be a substitute for legal advice. No liability is assumed by the authors or publisher for losses suffered by any person or organisation relying directly or indirectly on this newsletter. Views expressed are those of individual authors, and do not necessarily reflect the view of Edmonds Judd. Articles appearing in Fineprint may be reproduced with prior approval from the editor and credit given to the source.
Copyright, NZ LAW Limited, 2022.     Editor: Adrienne Olsen.       E-mail: [email protected].       Ph: 029 286 3650

The Budget 2024

Commercial, Health Issues, News, Your Own Business
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A no-frills outlook

Although it is clear the economic outlook is somewhat gloomy, in delivering the 2024 Budget, the Minister of Finance, Nicola Willis, said that savings across government have resulted in responsibly-funded tax relief. “Spending is targeted, effective and affordable.”

The government has promised targeted investments in public services, including healthcare, education, and law and order. Front-line services will be increased.  Having said that, the minister has admitted the Budget is “tight but realistic” and she intends to stick closely to these allocations.

 

Tax relief

The much-promised tax cuts have been delivered.

As previously signalled, the Budget will help what the government calls ‘the New Zealand squeezed middle income earner’. For the first time since 2010, personal tax brackets have been adjusted for New Zealanders earning up to $180,000 pa. Overall, average income households will have up to an extra $102 in their back pockets each fortnight.

Additional FamilyBoost payments will help around 100,000 families manage the costs of early childhood education with up to $150/fortnight.

These tax changes take effect from 31 July this year (a month later than promised) in order for payrolls to accommodate the re settings. Changes to FamilyBoost will apply from 1 July.

The government has reiterated the restoration of tax deductibility for interest on residential investment properties, as well as the adjustment to the bright-line test from 10 years back to two years from 1 July this year.

 

Health

Frontline health services have received a boost. Emergency departments, primary care, medicines and public health will get $8.15 billion additional operating and capital funding over the next four years:

  • $3.44 billion has been allocated for hospital and specialty services (including $31 million to increase security in emergency departments)
  • An additional $2.12 billion will be available for primary care, community and public health providers including GPs, Māori health services, mental health services and aged care services
  • Free breast screening will be gradually extended for 70–74-year old women (currently only available up to 69 year olds); an extra $31.2 million
  • Pharmac will receive additional funding of $1.77 billion over four years, which is said to just cover ongoing costs for additional medicines, and
  • The mental health initiative, Gumboot Friday, has $24 million to deliver services to young New Zealanders.

 

On the other side of the coin:

  • Free prescriptions have gone for most New Zealanders. However, free prescriptions will remain for those under 14 years old, people aged 65 and over and for Community Services Card holders, and
  • Promised additional funding for cancer drugs has not materialised. Since the Minister delivered the Budget, she has stated that the government aims to make an announcement on cancer drug funding this year.

 

Education

There will be increased spending on schools and early childhood education equating to $2.93 billion in extra operating and capital funding, including $440.8 million of reprioritisation. The government is allocating:

  • $1.48 billion to build new schools and classrooms and to maintain and upgrade existing school properties. This includes funding for kōhanga reo, play centres, kindergartens, kura kaupapa Māori, special schools, and intermediate, secondary and charter schools.
  • $516.4 million to support schools and early childhood education providers, plus $153.3 million to establish charter schools
  • $477.6 million to continue the Healthy School Lunches programme for the next two years
  • $67 million to support schools to use the new structured literacy approach when teaching reading, and
  • Funding is switched to allow a fees-free final year of tertiary study, rather than free fees in the first year.

 

Law and order

The government has reiterated its pledge to crack down on crime and keep communities safe. This includes:

  • Funding of $1.94 billion for more frontline Corrections officers, increased support for offenders to turn away from crime and increased prison capacity, and
  • $651 million allocated to support frontline policing (including increased pay) and for an additional 500 police officers and additional operational support staff.

 

Public services

$140 million is budgeted for an additional 1,500 social housing places, delivered by community housing providers.

$1.1 billion is allocated to ensure disabled people can access the essential services, equipment or support they need.

Hawke’s Bay and Auckland communities will receive $1 billion-plus for the rebuild and recovery from Cyclone Gabrielle and the Anniversary Day floods. $939.3 million of this is allocated for road repairs.

 

Infrastructure

The government, as it has previously signalled, is investing heavily in roading – $4.1 billion to accelerate priority roading projects including Roads of National Significance.

$200 million will be invested to support KiwiRail carry out maintenance and renewals on the national rail network.

 

Climate change

The government wants to support the country’s transition to a low-emissions economy and climate-resilient future. The minister said that around $2.6 billion of climate initiatives funded from the previous government’s Climate Emergency Response Fund will continue.

Later this year the government will consult on plans to deliver emissions reductions over the second emissions budget period. The minister confirmed that the Emissions Trading Scheme will play a vital role in reducing emissions.

 

In summary

While the Budget could not be considered an austerity plan, it is certainly a ‘no frills’ programme indicating the government will be running a tight financial ship over the next few years.

Treasury expects the economy to pick up later this year, including inflation returning to its target band of 1–3% and a fall in interest rates.

All things being equal, the government expects the country’s operating balance (before gains and losses) to head into surplus in the 2027–28 financial year.

In the meantime, however, we will all need to hold on to our hats and buckle our belts a little tighter over the next few years.

To read more detail about the Budget, click here for the Budget documents.

 

 

DISCLAIMER: All the information published in Commercial eSpeaking is true and accurate to the best of the authors’ knowledge. It should not be a substitute for legal advice. No liability is assumed by the authors or publisher for losses suffered by any person or organisation relying directly or indirectly on this newsletter. Views expressed are those of individual authors, and do not necessarily reflect the view of Edmonds Judd. Articles appearing in Commercial eSpeaking may be reproduced with prior approval from the editor and credit given to the source.


Copyright, NZ LAW Limited, 2021.     Editor: Adrienne Olsen.       E-mail: [email protected].       Ph: 029 286 3650

Who is responsible for managing someone’s affairs?

Estate, Health Issues, House, Kids, Property, Relationships, Retirement
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Enduring powers of attorney and the transition from attorney to executor upon death

Enduring powers of attorney are legal documents that allow individuals to appoint someone to make decisions on their behalf in case they become incapacitated.

 

There are two types of enduring powers of attorney that someone can put in place:

 

  1. Property: this grants authority over financial and property matters including managing assets, paying bills, and making financial decisions. A person could appoint more than one attorney to act jointly and/or severally and direct that the powers of attorney can immediately come into effect so that the attorney can manage their property while they have mental capacity and continue to act once they become incapacitated. They can appoint a successor attorney to act in the event the first attorney is unable or unwilling to act.

 

  1. Personal care and welfare: this delegates authority over personal matters like health care and consent to treatments. A person can only appoint one attorney at a time, and it can only come into effect when they have lost their mental capacity. A successor attorney can also be appointed.

 

Specific requirements and restrictions can be put on the attorney such as a requirement to consult with or provide information to another person or to only act in relation to specific property matters. The attorney can only act in accordance with the powers given by the enduring power of attorney document. These powers are only to be used when the person who appointed the attorney is still alive.

 

When a person dies, their enduring power of attorney comes to an end, shifting the responsibility of managing their estate to the appointed executors named in their will.

 

Although an attorney may have been appointed to manage the deceased’s affairs when they were alive, the same person may not be appointed as the executor of the deceased’s estate upon their death. It is essential for individuals to understand the transition of responsibilities from enduring powers of attorney to executors upon their death. The attorney will cease to act, and the executors named in the will or appointed by the court step in to manage the deceased person’s estate. This includes handling the distribution of assets, paying off any debts, and ensuring that the deceased’s wishes are carried out according to their will.

 

You should speak to your lawyer to ensure that your affairs are managed how you intend in the event you die or become incapacitated.

Get in touch today, we’d love to talk.

+64 7 872 0236 [email protected]