Succession law - more to it than who gets Waystar RoyCo?
April 2024
Possibly you are a fan of the TV show "Succession", and who may succeed Logan Roy (no spoilers), as may people are. But is inheritance in New Zealand law that simple? A parent makes the decision (via a will, assuming they have one – highly recommended that everyone has a will!) that their assets (called their "estate") to go one of their children? Or is the estate divided between all of their children? In equal shares? Does the same law apply if you are a fictional billionaire or a typical person with more modest assets than Logan?
The starting point for succession or inheritance law in New Zealand is the Family Protection Act 1955 (which this article will refer to as the Act). The Act stands as an important piece of legislation in New Zealand, designed to ensure that family members are adequately provided for in the event of a loves one's passing.
Provision for Family
At its core, the Act emphasises the importance of safeguarding the welfare of certain family members after the death of a relative. These family members typically include spouses (including de facto and civil union partners), children, and sometimes other dependents who may rely on the deceased for financial support or maintenance.
The Court has discretion to order that provision be made from an estate in favour of a limited range of family members. The Court must be satisfied that the deceased's will did not make adequate provision for the proper maintenance or support of the family member.
An adult child's estrangement from the deceased could reduce the moral duty owed to the applicant family member; however, rarely eliminates such a duty altogether. Therefore, it is always recommended that should an adult child not be provided for under a will, or given a lesser percentage than their siblings, that a detailed description as to why, accompanies the will.
Claims Against the Estate
One of the key features of the Act is its provision for eligible family members to make claims against the deceased's estate if they believe they have not been adequately provided for in the will. This means that if a close family member feels they have been unfairly left out or given insufficient provision in the deceased's will, they have the legal right to contest it and seek additional support from the estate.
Testamentary Freedom
While individuals have the right to choose how their assets are distributed after their death through their wills, the Act imposes certain obligations to ensure that close family members are not unfairly excluded of left without sufficient support.
This means that while testamentary freedom is respected, it is not absolute, and provisions must be made to prevent family members from facing undue hardship.
Court Proceedings
Resolving disputes regarding claims against the estate typically involves court proceedings. This legal process allows for a fair and impartial assessment of the situation, determining whether additional provision should indeed be made for the claimant, and if so, in what amount. These proceedings provide a formal avenue for resolving conflicts and ensuring that the interests of all parties involved are carefully considered.
Time Limits
It is important to note that the Act imposes specific time limits within which a claim against the estate must be brought. This emphasises the importance of acting promptly if a family member believes they have grounds for contesting the will or seeking additional provision from the estate. Failure to adhere to these time limits may jeopardise one's ability to make a claim under the Act.
The time limit for bringing a claim under the Act can be brought within 12 months from the date of the grant of administration in New Zealand. However, where the application is brought by the administrator on behalf of a minor or not of full mental capacity, then the time limit is 2 years from the grant of administration in New Zealand.
The Court has the discretion to extend the time limit when taking various matters into consideration. However, it is recommended to always file such an application on time to avoid the difficulties of seeking an extension.
In summary, the Act serves as an important mechanism for promoting fairness and ensuring that family members are not left unsupported following the death of a loved one. By providing a framework for resolving disputes and making additional provisions where necessary, the Act plays a crucial role in upholding the welfare and rights of individuals and families throughout New Zealand. So ultimately in law, yes Logan does have some say as to who may get Waystar RoyCo, but the Act provides a mechanism for the Court to protect those family members who may be cut out of a will by their fictional TV father.