FamilyLaw

When Luke and Yassica’s daughter Mildred decided to purchase a house, Luke and Yassica were keen to support and help her. Then Mildred told Luke and Yassica that she was going to purchase with her partner Jack so that they could combine resources. They were still struggling to be able to afford the sort of house that Luke and Yassica thought they should live in. Luke and Yassica had some savings that they were happy to allow Mildred and Jack to use, so they started thinking about how they could best help Mildred and Jack.

 

After talking to their solicitor, Luke and Yassica proposed to Mildred and Jack that they would provide them with $25,000 towards their purchase. Luke and Yassica’s solicitor would prepare a simple document that would record that the payment of $25,000 would be a loan to Mildred and Jack. Mildred and Jack would not be required to pay any interest, no security would be taken, but they would need to agree that the loan could be called up at any time. This arrangement gave Luke and Yassica the comfort of knowing that they were helping Mildred and Jack to get into a lovely home, but if Mildred and Jack’s relationship ended, Luke and Yassica would be able to call for repayment of the loan, so that the benefit of their hard-earned savings was kept in the family.

Evoto


Law Commission recommendations

The Law Commission recently reviewed the Protection of Personal and Property Rights Act 1988 (PPPR Act). This legislation governs how decisions are made for adults who lack capacity and can no longer make some decisions for themselves.

The PPPR Act applies widely; it includes adults who have declining capacity due to dementia, lack capacity due to intellectual disabilities or have a temporary loss of capacity (for example) due to injuries.

The Commission has made a number of recommendations for reform, particularly regarding property managers and welfare guardians who are appointed by the court to make decisions for people who cannot make decisions themselves.

 

Overall approach

The Commission recommends repealing the PPPR Act and replacing it with new legislation. The biggest shift is away from asking what is in a person’s ‘best interests’ (often considered paternalistic), and towards asking what the person’s own wishes, values and rights are, and how those can be respected.

Court-appointed decision-makers would be expected to support the person’s participation in decisions wherever possible; they would only step in to decide for them where genuinely necessary.

 

Changes to the roles of property managers and welfare guardians

The Commission also recommends renaming ‘property managers’ to ‘property representatives’ and ‘welfare guardians’ to ‘welfare representatives.’ The change reflects a shift in emphasis: these representatives would not simply make decisions they think are best, but would instead be required to represent the person’s wishes and values as far as possible.

Representatives would have clearer statutory duties. They would be required to act honestly, in good faith and with reasonable care, understand the person’s circumstances, support the person to participate in decisions, communicate in a way the person can understand, respect the person’s rights, and make decisions centered on the person’s wishes and values.

The scope of appointments might become more limited than they are currently. Representatives would only make decisions that the person lacks capacity to make and only where someone else genuinely needs to make those decisions. If a person retains capacity for some decisions, they would continue making those decisions themselves.

Property representatives would continue to have financial reporting obligations, and the existing financial limits on decisions they can make without court approval would be modified.

Welfare representatives could also be made subject to reporting requirements where appropriate. Representatives would also be expected to notify the court if significant changes occur that affect their suitability or the ongoing need for the appointment.

The court would have greater flexibility to tailor appointments. It could appoint multiple representatives, divide responsibilities, impose reporting obligations, require consultation between representatives and include safeguards where conflicts of interest exist.

Where a representative is also a spouse or partner, conflicts of interest would not prevent appointment, but specific conditions might be imposed from the outset to ensure conflicts of interest are handled appropriately.

 

Reasons for the proposed changes

Currently, many court-appointed representatives are family members with no legal training. The Law Commission found that the current duties are scattered between the PPPR Act and case law, making the roles difficult to understand. It recommends a single, clear list of statutory duties, and clearer obligations for representatives, so they are better equipped to understand their role and responsibilities.

The current law is also viewed as not sufficiently focussed on the person for whom decisions are being made. Property managers and welfare guardians are not always aware that they need to consider the person’s rights, wishes and values, rather than just making the decision they think is best.

 

Conclusion

Overall, the recommendations focus on encouraging people to participate in decisions which affect them and make as many decisions as they reasonably can make, but supporting them where needed. Where representatives are appointed, their role is to be as limited as possible and proportional to the lack of capacity in question.

If these changes become law, representatives will have clearer obligations, and will be accountable for respecting the rights, wishes and values of the person for whom they are making decisions.

The recommendations have not yet been considered by Parliament and may still evolve before any new laws are passed. It is, however, worth being aware that the roles and obligations of property managers and welfare guardians are likely to change in the coming years.

 

 

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.
Content Copyright © NZ LAW Limited, 2026.    Editor: Adrienne Olsen.       E-mail: [email protected]      Ph: 029 286 3650


Surrogacy in New Zealand

A complex and evolving area of law

For many of us, having a baby is relatively straightforward. For some, however, the road to parenthood is marked with U-turns, blind alleys, stop/go and much more. In the last few years, surrogacy has become an option for people for whom parenthood is not a straight path. And it’s all embedded in a legal framework.

 

In this country, surrogacy is a complex and evolving area of law, shaped by a combination of outdated statutes, modern reproductive technologies and ongoing legislative reform.

 

Legal framework

Surrogacy arrangements in New Zealand are legal, but is strictly regulated. The key, and very out-of-date, statutes governing surrogacy include the Human Assisted Reproductive Technology Act 2004, the Status of Children Act 1969 and the Adoption Act 1955. It’s worth noting that commercial surrogacy is prohibited — only altruistic arrangements are allowed – there can be no fee involved. The intended parents may only reimburse their surrogate for reasonable expenses, not pay for their services.

 

Under current law, the woman who gives birth to the child (the surrogate) and her partner (if she has one and they consent) are the legal parents at the birth of the child, regardless of genetic connection. The intended parents, even if they are genetically related to the expected child, have no legal parental rights until they complete an adoption process through the Family Court.

 

Intended parents can be married, a de facto couple, same sex couple or single female applicant. There is a restriction on a single male applicant adopting a child unless there are special circumstances.

 

Surrogacy arrangements

Surrogacy agreements are not legally enforceable in New Zealand. This means that if a surrogate mother changes her mind and wishes to keep the child, the intended parents have no legal recourse to enforce the agreement.

 

We would strongly advise all parties to seek independent legal advice before entering any surrogacy arrangement. Intending parents of the child are required to obtain a report confirming they have received legal advice before they start the surrogacy process.

 

IVF and ECART approval

Where surrogacy involves in vitro fertilisation (IVF), the arrangement must be approved by the Ethics Committee on Assisted Reproductive Technology (ECART). This process includes medical, psychological and legal counselling for all parties, and an assessment and approval of the intended parents’ suitability to adopt. The intended parents also require consent from Oranga Tamariki.

 

Adoption process

After the child is born, the baby can be in the care of the intended parents with the birth mother’s consent and subject to placement consent by Oranga Tamariki.

 

The surrogate, and any partner, must register the birth promptly, and then at least 10 days after the date of the birth, receive legal advice and sign a consent to the adoption.

 

The intended parents must apply to the Family Court for an adoption order even if one or both of them are the genetic parents of the child. The court process involves a social worker’s report and a judicial determination that the adoption is in the child’s best interests. Only after the adoption order is granted do the intended parents become the child’s legal parents, and a new birth certificate is issued.

 

International surrogacy

International surrogacy arrangements present significant legal and practical challenges, and there are international legal requirements to meet. Specialist legal advice is required for these.

 

Law reform on the horizon

The current legal framework is widely regarded as outdated and unfit for modern surrogacy arrangements. The Improving Arrangements for Surrogacy Bill, introduced in 2022, aims to simplify the process, provide for parentage orders (rather than requiring adoption), and ensure that all parties’ rights and interests (including, importantly, those of the child) are better protected. This bill is currently at Select Committee stage.

 

If you want to know more about how surrogacy could work for your situation, please don’t hesitate to contact us. We are here to help.

 

DISCLAIMER: All the information published in Property Speaking 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 Property Speaking 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 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