Edmonds Judd

Kids

Fences may not create friendships, but they do help make properties look tidy and defined. However, disagreements over who should pay for them can quickly turn a friendly wave into a frosty silence. Fortunately, the Fencing Act 1978 sets clear rules to help property owners handle fencing disputes without unnecessary stress.

 

Who Pays for the Fence?

If you are building or replacing a fence on a shared boundary, your neighbour is generally required to share the cost—provided the fence is “adequate,” meaning it’s reasonably fit for purpose. Before you start digging, discuss your plans with your neighbour. If you cannot agree, the Fencing Act provides a formal process to resolve disputes.

 

A Formal Process with Strict Timeframes

If you want your neighbour to contribute, you must serve them with a fencing notice detailing the fence type, cost, and who will build it. They have 21 days to agree or object. If they don’t respond, they are deemed to have accepted and must pay their share.

 

If they object, they must issue a cross-notice within 21 days, outlining their concerns or suggesting changes. If no agreement is reached, mediation, arbitration, a Disputes Tribunal, or a District Court ruling may be needed.

 

Common Fencing Issues

What if my neighbour wants a premium fence, but I prefer something simple?
They can only require you to pay half the cost of an adequate fence—not a luxury upgrade.

 

What if my neighbour sells their house mid-process?
You will need to start over with the new owner.

 

Can my neighbour refuse to let the builder step onto their land?
Yes, but you can seek a court order for reasonable access.

 

What if they damage the fence?
They must cover the full repair cost.

 

What if urgent repairs are needed while they are overseas?
You can fix the fence and recover half the cost when they return.

 

Fencing Around Swimming Pools

If your neighbour installs a swimming pool near the boundary, they must fence it in. You may need to contribute, but only up to the cost of a standard boundary fence.

 

Height Restrictions

Most fences can be built without needing council consent. However, local council rules may impose restrictions, particularly in heritage areas, so it is always worth checking before starting work.

 

Need Help?

Navigating fencing laws can be tricky but getting it right the first time saves headaches. If you need advice or assistance, the team at Edmonds Judd are here to help your fencing project go smoothly— hopefully without neighbourly disputes turning into courtroom battles.

 

Fiona Jack


What happens if your loved one loses mental capacity due to illness or accident?  Who will make decisions about whether they need to go into care?  Who can manage their finances to pay for their medical costs and living costs?

 

Hopefully your loved one has enduring powers of attorney in place appointing people to make decisions about their welfare and property.  But what if there are no enduring powers of attorney?

 

In that case, you will need to apply to the Family Court for orders under the Protection of Personal and Property Rights Act 1988 (PPPR).  There are various types of court orders that can be made appointing one or more people to manage someone else’s affairs.  Deciding which court orders to apply for depends on the circumstances and needs of the person who has lost capacity.

 

Before applying to the court, you should be aware of the strict legal obligations and responsibilities you will have if appointed, and that the court will have ongoing oversight to ensure affairs are being managed appropriately.

 

While it may cost a few hundred dollars to get enduring powers of attorney while someone is healthy, it can cost a few thousand dollars to get court orders if  they lose capacity there are no enduring powers of attorney in place.  So, it is a good idea to encourage your loved ones to get enduring powers of attorney while they are still healthy.

Kerry Bowler, Solicitor Kerry Bowler


Disinheriting your children

Can it be done?

In New Zealand, people making wills have a great deal of freedom to dispose of their assets as they wish. If, however, a will-maker entirely excludes some close family members from their will, those people will often have claims against the will-maker’s estate.

In the recent case of what is known as the Alphabet case,[1] an abusive father tried to use a trust to disinherit his children on his death.

 

 

Family Protection Act 1955

The Family Protection Act 1955 is designed to protect family members who have been excluded from a will or left without adequate provision. It allows certain groups of people (including spouses, partners and children) to claim against an estate for further provision.

The court follows a two-step approach when evaluating claims under the Act. First, it must decide whether the will-maker owed a duty to the claimant and, if so, whether that duty has been breached. Second, the court must consider what is required to remedy the breach.

The court takes a conservative approach in making awards for further provision. It will do no more than the minimum that it believes is necessary to address any breach of duty. There is no presumption of equal sharing between children, and the court will not rewrite a will based on its own perception of fairness. There is no formula, however, for assessing what is required to remedy a breach; each case depends on its own facts.

Important factors will include the size of the estate, the claimant’s personal circumstances and other competing claims (such as from siblings or a parent/stepparent). In many cases, however, a financially stable adult child might expect to receive 10–15% of a parent’s estate. That could increase if a child is in poor circumstances or has suffered abuse at the hands of their parent.

 

 

Making a successful claim

When a successful claim is made under the Act, the award will be paid from the deceased’s estate. That necessarily means that claims are limited by the size of the estate. If a will-maker has gifted or transferred assets to a trust during their lifetime, or to other people, their estate may have little or nothing left in it. This has the effect of preventing estate claims because there is no estate available.

In the Alphabet case, an abusive father transferred his assets into a trust. His children wanted to bring claims against his estate, but there was nothing in it. They argued that they should effectively be able to unwind the transfer of assets to the trust, so that those assets went back into their father’s estate, and they could bring claims under the Act. This case went all the way to the Supreme Court.

 

 

Alphabet case

In the Alphabet case, the deceased father was referred to as Robert, and his children as Alice, Barry and Cliff. Alice, Barry and Cliff experienced egregious abuse at Robert’s hands and, understandably, did not have a relationship with him.

Robert took deliberate action during his lifetime to transfer most of his assets to a trust. None of his children were beneficiaries of that trust.

Alice, Barry and Cliff argued that Robert owed them fiduciary duties as a parent, and that he breached those duties when he abused them. They argued that the abuse created an ongoing fiduciary obligation which Robert breached when he transferred his assets into a trust. They argued that the transfer of assets could (and should) be unwound on this basis, and Robert’s assets returned to his estate; this would allow them to make claims under the Act.

Fiduciary duties are duties to put someone else’s interests before your own. They usually arise in relationships of particular trust and confidence. The Supreme Court acknowledged the existence of fiduciary duties between a parent and a minor child, but it found that these duties ended when the parent’s caregiving responsibilities ceased. It did not agree that there remained a fiduciary duty owing later on which would prevent Robert transferring his assets to a trust.

The court noted that the Act does not contain any mechanism to ‘claw back’ assets which have been put in a trust or transferred to another person in order to avoid estate claims. It noted that this might be the subject of future law reform but it was not existing law.

Robert’s three children therefore failed in their attempt to bring assets back into Robert’s estate, on which they could then have made Family Protection Act claims.

 

 

Law Commission

The Law Commission recently prepared a comprehensive review of succession law. It proposed that some form of anti-avoidance, or ‘claw back’ provision, be included in any law reform efforts that would address situations such as the Alphabet case.

While the government has considered the Law Commission’s report, it has not yet taken any steps to progress law reform efforts. For the time being, this means trusts may continue to be used in order to prevent some potential estate claims, particularly those brought by children.

[1] A, B and C v D and E Limited as Trustees of the Z Trust [2024] NZSC 161

 

 

DISCLAIMER: All the information published in Trust 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 Trust eSpeaking 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


Luke is very excited about the impending birth of his first child and is taking the time to reflect on his life so far. As he is driving to the store to pick up some groceries, he recalls the first job he ever had – working as a bartender in a lovely little Scottish pub in Dunedin. His pay wasn’t significant back in those days, but he worked hard and he saved his pennies. It wasn’t long before he’d saved up enough to go on a big holiday!

Luke had always dreamed of flying to Indonesia to see the Komodo dragons in the wild. Once he was sure he had enough in the bank, he went to ask his manager, Mr Moyes, if he could have some time off.

“Tell me lad,” Mr Moyes said, furrowing his brow, “how long have you been working for me now?”

“Why, nearly six months, Mr Moyes! I reckon I deserve a break” Luke said, sheepishly. Beads of sweat began to drip down his pimply face.

“Well, Luke,” Mr Moyes began, shifting uncomfortably in his seat, “it’s not that I don’t think you deserve a nice holiday. Aye, you’re an excellent worker, and you have a knowledge of whisky as fine as any Scotsman! But I just wonder, won’t the shortfall from the lack of wages during your holiday be an issue?”

Luke gulped.

“But sir, I thought I would simply take annual leave. After all, I’ve accrued ten days’ worth. That’s more than enough for my holiday, assuming it doesn’t take longer than that to find the Komodo dragons.”

“Well, you see Luke,” Mr Moyes responded, offering a wry grin. “Here in Aotearoa New Zealand, you can’t actually take annual leave until you’ve been working continuously at the same place for 12 months. You continue to accrue it, yes, but there’s no entitlement to actually take the accrued leave until your first anniversary of employment. You can take annual leave you’ve accrued before then, but this is at my sole discretion, being your gaffer and all”.

“Oh,” Luke exclaimed, crestfallen. He had so been looking forward to travelling to Indonesia. Mr Moyes looked him up and down and sighed.

“Tell ya what lad, I think we’ll manage without you. You can take the leave you’ve accrued, no problem”.

Luke jumped for joy. He was going to Indonesia! He paused, wondering if he could try his luck further.

 

“Actually Mr Moyes, how would you feel if I went to Indonesia for three weeks instead of two?” Mr Moyes jumped out of his seat.

“That’s a bit cheeky!” he said, his eyes as big as wagon wheels. “But alright, you can take leave that you haven’t accrued yet in this country too, also at my own discretion. Just be warned, though. If you leave my employ before you’ve accrued that extra week of leave, I’ll require you to pay me back. Every cent!”

Mr Moyes’s warning fell on deaf ears though, as Luke could think only about Indonesia, sipping on coconuts and surveying the local fauna.

Of course, Mr Moyes was right.  Most employees are entitled to four weeks of annual holidays, and they start accruing this leave from their first day on the job. Accrued leave then sits there, unused, until the 12-month anniversary of your employment. Your employer can let you take the leave you’ve accrued before the 12-month anniversary, but this is at their sole discretion.

 

You can also take leave before you’ve accrued it but this can be risky, as you may have to pay your employer the difference, if you resign before it’s accrued.


Luke snapped back to reality. He hadn’t worked for Mr Moyes for some time now, but he would always remember his words and his warning. He smiled, and thought about the life lessons he would pass down to his child. Unfortunately, contemplating this was very distracting for Luke, and he crashed into the car in front of him! Luckily, no one was hurt, but Luke wondered what Sally would think of him crashing her brand new Tesla…

 

Jamie Graham


The Supreme Court recently issued its much-anticipated ruling in A, B and C v D and E Limited as Trustees of the Z Trust known as the Alphabet case. It concerns the extent of fiduciary duties owed by a parent to an adult child. ⚖️

The case involves a father, who transferred most of his assets to a trust during his lifetime, leaving his adult children without any entitlement to those assets. The children argued that due to past abuse they suffered at their father’s hands, including physical, emotional abuse and sexual abuse, their father owed them fiduciary duties that extended into adulthood. They believed his actions in transferring assets breached those duties, and the assets should revert to his estate to satisfy their Family Protection Act claims to be provided for from his estate.

While the Court agreed that fiduciary duties exist between a parent and minor child, it ruled that those duties generally end once the child reaches adulthood or the caregiving responsibility ends. The Court rejected the notion that such duties continued into adulthood, despite the children’s vulnerability due to the abuse they suffered during childhood. Importantly, the Court noted that imposing fiduciary duties in this case would create legal uncertainty and “reverse engineer” a remedy for past wrongdoing.

The Court also ruled against treating the trust assets as part of the father’s estate. However, it acknowledged the need for legal reform in this area and pointed to the Law Commission’s 2022 proposal to allow courts to unwind property transactions that intentionally defeat claims under succession law.

While the Court was sympathetic to the appellants, it ultimately found that the law could not support their claim in this case. The ruling highlights the need for further reform in this area of law, which the Law Commission’s proposals may address in the future.

Kerry Bowler, Solicitor Kerry Bowler


If you think you might succumb to temptation and buy a holiday house at your favourite beach this holiday season, here’s some points to consider when entering a sale and purchase agreement.

 

Your best option is to talk to a lawyer before you enter a contract to buy that beach bach. But, they might be on holiday too. So, if you can’t get to your lawyer, make sure your sale and purchase agreement has some conditions in there to offer you a level of protection. There are the usual LIM, building inspection, and finance conditions. But, you might want to also consider having these conditions too:

 

  1. Due diligence condition: this condition allows you to do some investigations before the contract becomes unconditional. If the property doesn’t stack up, you can cancel the contract, usually without providing a reason. This clause can potentially save you thousands of dollars!
  2. Subject to solicitor’s approval condition: this condition can be sued to cancel the contract on the grounds of conveyancing aspects of the purchase. So, not as broad a protection as the due diligence clause, but still a “good to have”.
  3. Insurance condition: given the changing nature of insurance in New Zealand and the impact that natural disasters can have, it is worth adding a condition that provides you are able to obtain insurance for the property.

 

Don’t get caught up in the hype. There’s always “someone else” interested in the same property. Take your time and make sure it is the right purchase for you.

 

Finally, make sure you get some accounting advice, there could be some unexpected tax complications.

 

We’re open again from 6th January to help you with your property purchases and conveyancing needs. We can also help you with ownership structures, negotiating property sharing agreements, succession planning, and any disputes that might arise

 

Wishing you all the best for the Summer holidays.

Joanne Dickson


Meet Luke and Sally. They’ve been together for about a year, and now they have some exciting news—Sally is pregnant with their first baby! Amid the joy, Sally wants to find out what her pregnancy means for her job and what leave she can take once the baby arrives.

Pregnancy Rights at Work

First things first: the law protects pregnant employees. Under the Human Rights Act, it’s illegal for anyone to treat Sally unfairly because of her pregnancy. In fact, employers can (and often do) offer extra support, like flexible work hours, to make things easier for expecting mothers.

Understanding Parental Leave

Sally is planning to be her child’s main caregiver, so she looks into her parental leave options under the Parental Leave and Employment Protection Act (let’s call it the Parental Leave Act for short).

The Parental Leave Act defines a primary carer as the biological mother (or another person, like a partner, in certain situations). If you’re the primary carer, you may be entitled to:

  • Unpaid parental leave from your employer, and
  • Paid parental leave payments, which are handled through Inland Revenue.

How Long Has Sally Been at Her Job?

What Sally qualifies for depends on how long she’s worked for her employer and how many hours she’s worked each week. Let’s break it down:

  1. 6-Month Test:
    If Sally has worked for her employer for at least an average of 10 hours a week in the 6 months before her baby’s due date, she qualifies for:

    • Up to 26 weeks of unpaid leave, and
    • Up to 26 weeks of parental leave payments.
  2. 12-Month Test:
    If Sally has worked for at least 10 hours a week in the 12 months before her baby’s due date, she’s eligible for:

    • Up to 26 weeks of paid parental leave, and
    • Extended unpaid leave of up to 52 weeks total.

Good news for Sally—she meets the 12-month test, so she’s entitled to the full benefits.

What About Luke?

Sally and Luke also have the option to share parental leave. If they decide Luke will be the primary carer at any point, he can take over Sally’s entitlements, but this means Sally would no longer have primary carer benefits during that time.

If Luke doesn’t take over as the primary carer, he can still apply for partner’s leave:

  • 1 week if he’s worked 10+ hours weekly for the last 6 months, or
  • 2 weeks if he’s worked 10+ hours weekly for the last 12 months.

What Does Sally Need to Do?

To take parental leave, Sally must give her employer at least 3 months’ notice before her due date. She’ll also need to include a certificate from her midwife confirming her pregnancy and due date.

Need Help?

Parental leave laws can seem complicated, but knowing your rights can make the process smoother. If you’re unsure about your entitlements or how parental leave might affect your job, we’re here to help—just reach out!

 

Kristin O’Toole

 


Our last article discussed claims by a partner on separation or death.

 

Conversely, some blended families want to provide for their new partner on their death and seek to minimise the risk of a claim by their respective children.

 

Under the Family Protection Act (FPA), parents owe a moral obligation to make adequate provision for their children in their Will.

 

To minimise the risk of FPA claims, couples may change the ownership of their assets so that those assets do not form part of their estate and are not open to claims under the FPA.

 

Some common ownership structures include:

 

  1. Transferring property into a discretionary family trust; and/or
  2. Transferring property into joint names so that it passes by survivorship on death.

 

These ownership structures make it more difficult for children to make claims against estates.

 

However, section 88 of the Property Relationships Act (the Act) allows an executor to make an application for division of relationship property against the surviving partner, where refusing them the right to do so would cause a “serious injustice”. If an executor is not willing to make the claim, the deceased’s children may apply to the court to have them removed.

 

If most relationship property is jointly owned or was transferred to a trust during a relationship, then that could meet the threshold for a serious injustice. In these circumstances the court may divide relationship property so that the estate has property available for the children to make an FPA claim.

 

A contracting out agreement is one of the only tools that can help to prevent these types of claims.

Libby McDonnell


Why should I look at my will?

Review at life’s milestones

You should review and update your will regularly. It is not something that, once done, you should just stick in a drawer and forget about. There are many significant milestones in life when you should think about whether your will is still appropriate for your unique circumstances.

 

If you don’t often review your will, particularly after important life milestones, you may discover (or worse, your family may discover after your death) that your will does not leave everything the way you intended. This means that certain people or causes may miss out on an inheritance or a gift in your will. Also, out-of-date wills can cause significant complications for the people involved in the management and distribution of your estate.

 

With the summer holidays coming up and some time away from the treadmill of daily life, this is an ideal time to review your will.

 

Buying a home is a milestone

Many people make a will when buying their first home. Although there is no reason why you cannot make a will before then, this is often the trigger when it feels like you have something significant to leave in your will. If you buy your home with someone else, usually you will want to leave the house to that person when you die. However, this is not always the case, particularly if you are not in a romantic relationship with that person.

 

If you have children from a previous relationship, you may want to ensure your partner can continue living in the house when you die but, ultimately, you want your children to inherit your share of the house. You may have borrowed money from other family members to help with the purchase that you need to repay first. Your will should be carefully drafted to make sure it truly reflects your intentions.

 

Joint ownership vs tenants in common: The ownership structure of your home, or any asset for that matter, is also very important to understand. ‘Jointly owned’ assets pass to the surviving owner/s when one owner dies. Assets which are owned as ‘tenants in common’ remain part of a person’s estate when they die and will be distributed under that person’s will.

 

Many people are not sure, or forget what type of ownership they have, especially if their house was bought many years ago. If you are unsure, or the ownership structure of your asset/s changes, you should review your will to make sure that everything will still be distributed as you want after your death. You should also review the ownership structure at the same time.

 

Marriage, separation and divorce

Getting married, separated or divorced are all events that have a significant effect on how your will might operate when you die. If you have a will and subsequently get married or enter into a civil union, your will is automatically revoked, unless your will is specifically worded as being in contemplation of that marriage or civil union. If it is not, you could effectively be left without a valid will, even though you have made one in the past.

 

In the case of a separation order or divorce, your existing will is not revoked but the law states that your spouse or partner is treated as having died immediately before you. This means any gifts to them will be void and, instead, any backup provisions in your will would come into effect. You should update your will after a separation or divorce to ensure that it will operate as you intend.

 

It is also important to know that the simple act of ‘breaking up’ with someone is not enough to have gifts to that person automatically voided. You should take the additional steps of obtaining a formal separation order or an order dissolving the marriage, and reviewing your will. If not, you could be left in the awkward situation of leaving everything in your will to your ex-spouse or partner – which may be a very unpalatable idea for some!

 

Birth or adoption of children

There’s a lot to think about when welcoming a child into your family and a review of your will may not be high up on the to do list. Your will should, however, assign guardianship of your children and account for their future needs, particularly if your child has special needs requiring a higher level of assistance. If there is a significant age gap between your children or you have children from different relationships, your will may need to be tailored to account for this.

 

Death of an executor, beneficiary or guardian

Executors are the people you name in your will to manage and distribute your estate when you die. A will-maker will often appoint a family member or someone to whom they are very close to carry out this role. It is important to have an executor who you trust who will do a good job.

The death of an executor, beneficiary or a guardian of your young children means your will may not work as intended or could create confusion. Do review your will if this happens or should your executor’s circumstances or health change.

 

Significant changes in financial position

Receiving a large inheritance or a significant capital gain on, say, property or business assets (or perhaps winning Lotto!) can significantly alter how you want your estate to be distributed when you die. You may decide to include additional beneficiaries – perhaps more distant family members or friends, or leave a gift to a charity that you care passionately about.

Although it’s not always the case, estates of relatively higher value are often more complex and require greater planning to ensure that everything runs smoothly when you die.

 

What if I don’t have a will?

If you die without a will (called an ‘intestacy’), your assets will be distributed according to the default rules established by law. Depending on your circumstances and who survives you, your assets would usually go to some combination of your spouse or de facto partner, children, parents and siblings. Even if some family members are estranged from you, they could still receive something from your estate under the default rules.

 

Other milestones

The milestones we have noted above for reviewing your will are not exhaustive. Starting a business, having a KiwiSaver account, moving countries, changes in your health and amendments to the law are all good reasons to look at updating your will.

 

If it’s been a while since you’ve looked at your will, we hope this article gives you the impetus to pull it out of that drawer and dust it off. Better yet, talk with us about it so you can have peace of mind knowing that, when you die, your loved ones will be taken care of as you wish.

 

 

 

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


In this article we look more closely at Step 3 – Advice.

 

Once your lawyer has the details of all property owned by each of you they can assess what your rights would be if that property were divided under the RPA, and provide you with advice on how the agreement affects your property rights and the implications for you if property were divided under the agreement.

 

Why do I need advice on rights under the RPA if it’s just 50/50 and I’m contracting out?

This is where the law jumps in and says “woah there, partner! There’s a lot more to it (131 pages to be precise), so you should definitely get legal advice to check it’s what you want first”.

 

It is important that you fully understand your current property rights under the RPA before agreeing to change or give up those rights.  The starting point for under the RPA is that relationship property will generally be divided equally between partners in a qualifying relationship.  However, this is just a presumption, not a rule set in stone. There are numerous exceptions and adjustments within the RPA that can alter how property is divided based on the specific circumstances of your relationship.  Even the most experienced relationship property lawyers can find the RPA complex. That’s why seeking legal advice is essential before making any decision to contract out of the RPA.

 

Great, now you’ve had advice and know what your actual property rights are under the RPA, let’s compare that to your position under the contracting out agreement.

Even if you’re planning on entering into a contracting out agreement with the intention of maintaining a 50/50 split, it’s important to realise that the implications could be far-reaching.  Property rights, financial arrangements, estate planning, and even third-party property rights (such as those held in trusts or companies) can all be affected.  The agreement might impact more than you expected.  (*Hot tip* now is a good time to consider whether you should create or update your will as it works hand-in-hand with your contracting out agreement)

Your lawyer will be able to assess your specific situation and help you understand how the contracting out agreement compares to your rights under the RPA. They can guide you through the various consequences and ensure you’re fully informed before agreeing to anything.

 

But wait!!! It’s not enough just to receive legal advice—you need to understand it. Ensure your lawyer explains the details and feel free to ask lots of questions, we love to know you are thinking about how this all applies to you.

 

If you’re satisfied with the advice and understand the implications, it’s time to book an appointment with your lawyer to sign that contracting out agreement. This step is crucial to ensure your rights are protected and your intentions are clearly outlined.

Kerry Bowler, SolicitorKerry Bowler, solicitor