The Law Commission recently concluded its thorough examination of New Zealand’s Law of Succession, leading to a comprehensive report with 140 proposed changes. Recognizing the outdated nature of current laws, the Commission seeks to align them with contemporary family structures and values. The government, acknowledging the need for change, released its response on July 18, 2022.

Central Recommendations and Changes:

1. Introduction of the “Inheritance (Claims Against Estates) Act”: The most pivotal recommendation is the repeal of Part 8 of the Property (Relationships) Act 1976, the Family Protection Act 1955, and the Law Reform (Testamentary Promises) Act 1949. In their place, a new legislation, the “Inheritance (Claims Against Estates) Act,” is proposed. This act aims for clarity, accessibility, and alignment with the New Zealand Bill of Rights Act and te Tiriti O Waitangi, particularly in the succession of taonga.

2. Reform in Relationship and Succession Law: The Commission suggests changes affecting succession law concerning couples. The existing option for a surviving partner to choose between the deceased’s Will and relationship property division under the Property (Relationships) Act is set to be replaced. Instead, the surviving partner will retain gifts from the deceased’s Will, and the option to divide relationship property will remain.

3. Agreements for Estate Claims: The current limitation preventing couples from creating agreements to opt out of estate claims against each other will be addressed. Strict requirements for these agreements, similar to Contracting Out Agreements, will be imposed, ensuring compliance with legal standards.

4. Multi-Partner Relationships: The report touches on the application of succession laws in multi-partner relationships, emphasizing the need for broader considerations in family law for non-traditional relationships.

5. Claims Against Estates for Further Provision: The Family Protection Act’s legal test for claims against a deceased’s estate is deemed unsatisfactory. The proposed repeal of the Act suggests alternatives for claims by surviving partners, children, and grandchildren, taking into account financial need, recognition, and the best interests of the child.

6. Intestacy Reform: Significant reform is recommended for intestacy cases, introducing changes to the eligibility of certain family relationships, proportions of inheritance, and acknowledging whāngai arrangements under tikanga.

Government’s Response:

The government accepted the need for reform, emphasizing the importance of te ao Māori perspectives and diverse family structures. While recognizing the significance of these changes, the government foresees several years before their implementation.

This brief overview covers only a fraction of the Commission’s recommendations, indicating a substantial overhaul across various aspects of succession law. For in-depth information or legal assistance on succession law matters, feel free to contact our Private Client & Trust team. We are here to guide you through these anticipated changes.