NEW ZEALAND Law and Practice Contributed by: Violet Yu, Jonathon Russell and Sandy Chen, Cone Marshall Limited
8. Planning for Minors, Adults with Disabilities and Elders 8.1 Special Planning Mechanisms New Zealand provides flexible trust law and statu - tory mechanisms to support minors and adults with disabilities. Discretionary trusts, with clear guidance expressed to the trustee, can be applied towards looking after a minor or for adults with disabilities. One may also use wills to set up testamentary trusts to appoint a trustee to manage the inheritance of a minor until they reach the age of majority or a disabled adult. Where an adult becomes incapacitated, an applicant may apply under the Protection of Personal and Prop - erty Rights Act 1988 for the court to appoint a prop - erty manager and welfare guardians. Enduring power of attorney for property or personal care and welfare can ensure long-term care and financial protection for individuals who become incapacitated. The New Zealand government provides a range of financial support for minors and adults with disabili - ties, aiming to enhance their quality of life and facilitate community participation. In relation to minors under the age of 18, the Child Disability Allowance offers non-means-tested financial assistance to caregivers of children who require constant care due to a serious disability. For adults, the Disability Allowance is a payment scheme from the government to help cover ongoing costs associated with their condition, such as medi - cal expenses, travel and special equipment. In addi - tion, the Supported Living Payment is another scheme which provides income support to individuals who are unable to work on a long-term basis due to a signifi - In New Zealand, in the event a parent dies leaving a minor without a surviving legal guardian, the Fam - ily Court has jurisdiction to appoint a guardian of the minor under the Care of Children Act 2004. In the event an adult loses mental capacity, the appointment of a welfare guardian or conservator cant health condition or disability. 8.2 Appointment of a Guardian
(property manager) requires a court application under the Protection of Personal and Property Rights Act 1988, and the appointee is subject to ongoing court supervision and obligations to submit annual state - ments. These safeguards are designed to protect vulnerable individuals and ensure decisions made on their behalf are in their best interest. 8.3 Planning for Incapacity In New Zealand, the principal legal mechanism for planning for mental incapacity is an enduring power of attorney (EPA/EPOA), which must be made while the donor has mental capacity. There are two types of EPA: an EPA for property, which allows the attorney to manage the donor’s financial and property affairs, and an EPA for personal care and welfare, which allows the attorney to make decisions about the donor’s health, welfare and living arrangements if the donor becomes mentally incapable supported by a medical certificate. A property EPA may take effect immediately or only if the donor becomes mentally incapable, depend - ing on how it is drafted, whereas a personal care and welfare EPA takes effect only once the donor has lost capacity. In practice, EPAs are commonly used as part of estate and succession planning to avoid the need for a Fam - ily Court application for a welfare guardian or prop - erty manager under the Protection of Personal and Property Rights Act 1988. They are often prepared alongside wills, trusts and advance care planning documents, and should be reviewed periodically to ensure the appointed attorneys remain appropriate and willing to act. 8.4 Elder Law New Zealand supports its citizens and residents in preparing financially for longer lifespans through a combination of public and private initiatives. These include the KiwiSaver scheme, which is a voluntary long-term retirement savings plan with employer and government contributions. The New Zealand Superannuation is a universal public pension for eligible residents in New Zealand. The cur - rent age of eligibility for New Zealand Superannuation is 65 and over.
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