Succession Planning

Waipa is becoming one of New Zealand’s most attractive retirement destinations, with new retirement villages reflecting a growing community preparing for the next chapter of life.

For Steve, this became personal when his grandmother started talking about leaving the family home she had lived in for over 40 years. It wasn’t just a house to her — it was where she raised her children, hosted countless Sunday dinners, and built a lifetime of memories. The idea of moving brought both practical questions and a deep sense of emotion for the whole family.

Steve noticed that while his grandmother was ready for a simpler lifestyle, she was unsure about what came next — whether to downsize, consider a retirement village, and whether her legal affairs were still in order.

Together, they discovered her Will hadn’t been reviewed in many years and no longer reflected changes in her family or her current wishes. It was a gentle reminder of how easily these documents can become out of date over time. They also spoke about Enduring Powers of Attorney, ensuring the right people could step in if needed, and the importance of carefully understanding retirement village agreements before making any decisions.

Taking the time to get everything in order gave Steve’s grandmother real peace of mind. It also reassured Steve and the rest of the family that her wishes were clear and would be respected.

With the right planning and legal guidance from the team at Edmonds Judd, what initially felt overwhelming became a clear, supported transition — allowing Steve’s grandmother to focus on enjoying her next chapter with confidence, comfort, and security.

 

Rachael Beattie


Over the fence

Biosecurity overhaul

In July 2025, the Ministry of Primary Industries released its proposed ‘Biosecurity System Action Plan.’ It is intended to guide new legislation to amend the Biosecurity Act 1993, and to overhaul current biosecurity regimes to improve process, obligations and rights. This will impact importing/exporting, practices on farm and government accessibility to farms.

The action plan is presented in two tranches. The first focuses on immediate priorities – clarifying roles, modernising processes and providing training tools. The second tranche will build on successful initiatives, consider social and cultural impacts and develop long term resolutions. Significant progress on both tranches by 2030 is proposed.

Key proposed amendments following submissions and consultation include:

  • Placing greater decision-making discretion with regional councils and management agencies – including the ability to create exemptions, issue permits for pests and produce small scale management plans
  • Increasing and introducing new penalties, including for obstructing a lawful search
  • The ability to grant one-off or ad hoc permits for imported goods, and
  • Removing the need for the current exemption for regional councils to enter private land to manage pests.

A draft bill is anticipated to be presented to Parliament in late 2026.

To read more on the Biosecurity System Action Plan, the steering group workshops and the proposed next steps, click here.

 

Employee v contractor

On 21 February 2026, a new ‘gateway test’ was introduced to determine whether an individual is an employee or a contractor in terms of employment law. The gateway test does not apply retrospectively.

Gateway test: An individual is a contractor if they meet all the gateway test criteria. These are:

  • There must be a written agreement stating they are an independent contractor or are not an employee
  • No restriction from working for others (except while undertaking agreed work)
  • They are not required to work at a specified time/period OR they can subcontract the work, subject to legally required or justifiable vetting
  • Additional future work can be declined without the arrangement being terminated, and
  • There has been a reasonable opportunity to seek independent advice before entering into the arrangement.

If all criteria are satisfied, the individual is a contractor. If any of the criteria is not met or for claims brought prior to 21 February 2026 the common law test (below) applies.

The four factors below are considered together to determine whether an individual is a contractor:

  1. Intention – what did the parties intend the relationship to be? Consider entitlements received – for example, contractors are not entitled to holiday pay.
  2. Control v independence – high employer control over hours, work and methods may be indicative of an employer/employee relationship
  3. Integration – is the role fundamental to an employer’s business and continuous in nature, and
  4. Fundamental/economic reality – does the economic reality reflect a person in business on their own account? Consider fee structure, tax obligations, ability for the individual to profit and who bears financial risk.

The distinction between an employee and contractor is highly relevant for the rural sector as you may have both contractors (such as sharemilkers and contract milkers) and employees (farm hands, managers, etc) working on your property.

 

Wills and EPAs: essential for rural sector

For people who are responsible for farms and other major assets, it is important to ensure you have a current will and Enduring Powers of Attorney (EPAs). If you don’t have these and you die unexpectedly, lose mental capacity, or are unable to attend to your personal affairs for a period, it could lead to not only farming operations being disrupted, but also family uncertainty and having to spend time and money on sorting things out.

Will: Your will sets out your instructions about the distribution of your property to your family after you die. Even if you have a will, it is good practice to regularly review it, so it reflects your current situation and wishes.

If you don’t have a will, there is legislation[1] that decides how your estate is divided up; this arrangement may not be what you would wish. To prevent this, it’s optimal (and much easier) to ensure you have a valid will that reflects your wishes. Your family will thank you for it.

EPA: An EPA is a legal document that allows a trusted person (your attorney) to manage your affairs and personal care. There are two forms of EPA – one covering property affairs and the other about your personal wellbeing. An EPA for personal care only applies if you lose mental capacity, while an EPA for property can also apply while you have capacity.

For a property EPA, your attorney could be a trusted friend or relative, or you could appoint a trustee company to manage your property matters.

For a personal care and welfare EPA, you can only appoint a person as your attorney.

We can help you set up EPAs and a will or, if you already have them, review them so they reflect your current situation.

[1] Administration Act 1969.

 

 

DISCLAIMER: All the information published in Rural 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 Rural eSpeaking may be reproduced with prior approval from the editor and credit given to the source.
Content Copyright © NZ LAW Limited, 2026.    Editor: Adrienne Olsen.       E-mail: [email protected]      Ph: 029 286 3650


A few years on from her decision to take out a reverse equity mortgage, and having enjoyed the benefits of releasing some of the capital tied up in her home, Karen is now feeling less confident about living on her own. Many of her old friends have moved away from her neighbourhood, and she is finding that she would like more support close at hand. She has decided to investigate moving into a retirement village.

This option offers several advantages. Karen would no longer need to worry about home maintenance, security, insurance, or rates. She would have ready access to assistance should she suffer a fall or other medical event. And if she feels like company, there would be plenty of like-minded people nearby.

However, Karen has been warned that there can be significant financial implications when selling a home and buying into a retirement village. To fully understand her position, she meets with her solicitor.

Her solicitor explains that most — though not all — retirement villages operate under Occupation Right Agreements (ORAs). Under an ORA, Karen would pay a capital sum in exchange for the right to live in her chosen unit. She would not own the land or building itself, and her right to occupy the unit would be subject to certain terms and conditions.

These conditions often include payment of a regular weekly fee for as long as the unit is occupied. There is also usually a deferred management fee (sometimes called an exit fee), which is deducted from the original capital sum when Karen leaves the village — whether that is because she chooses to move elsewhere or upon her death. In addition, there will be village rules governing what residents can and cannot do within their units and the wider village.

Karen’s solicitor takes the time to carefully explain the legal and financial implications, including how the move may affect the estate she intends to leave to her family. Once Karen fully understands her options, she is in a position to decide whether a move to a retirement village is the right step for her.

 

Mandy Rasmussen