Clause 74 provides that Part 21 amends the Protection of Personal and Property Rights Act 1988.
Clause 75 amends section 94A. New subsection (4A) is inserted to add a further exception to the requirement in subsection (4) that a witness to the signature of a donor must be independent of any attorney. If 2 people appoint each other as attorney, the same person may witness the signature of both of them as donor if, having regard to the matters in subsection (7)(a) to (b), the witness is satisfied that witnessing both signatures does not constitute a conflict of interest. Clause 75 also makes a consequential amendment to subsection (7)(c).
Clause 75 also inserts new subsection (6A), which relates to a new regulation-making power in new paragraph (bab) of section 12 (as inserted by clause 81). If regulations made under new paragraph (bab) prescribe a form of standard explanation for any of the matters in subsection (6), which a witness to a donor’s signature must explain to the donor, under new subsection (6A) the witness may give the explanation by—
giving a copy of the form to the donor; and
following any instructions in the form for giving a verbal explanation; and
if the form or the instructions do not cover all of the matters in subsection (6), using other appropriate means to fulfil all of the requirements of that subsection.
Clause 75 also amends subsection (7) to clarify which prescribed form is being referred to in the subsection.
Clause 75 also inserts new paragraph (ab) into subsection (7), adding a new requirement for a certificate by a witness to a donor’s signature. The new requirement is that the witness believes on reasonable grounds that the donor—
understands the nature of the instrument; and
understands the potential risks and consequences of the instrument; and
is not acting under undue pressure or duress.
The new requirement applies only to enduring powers of attorney executed after the commencement of new paragraph (ab).
Clause 76 inserts new section 95A, which says if an enduring power of attorney states that it revokes an earlier enduring power of attorney of the same kind, both powers of attorney continue to have effect until the earlier one is revoked by notice given in the manner set out in new subsection (2) or ceases to have effect by any of the other ways listed in section 106(1). Notice revoking an earlier power of attorney is given when a copy of the later power of attorney is given to the attorney or attorneys appointed under the earlier power and the notice may be given by a person other than the donor, including if the donor becomes mentally incapable.
Clause 77 inserts new paragraphs (c) and (d) into section 99A(1) to widen a consultation requirement to include any attorney appointed by a donor under either the same enduring power of attorney or any other enduring power of attorney. New subsection (8) is also inserted into section 99A to clarify that if the same attorney is required to be consulted under new paragraphs (c) or (d) and subsection (7), the requirements of both subsections (1) and (7) must be met in relation to that attorney.
Clause 78 replaces section 99D(1). The existing requirement relating to certificates of a donor’s mental incapacity issued outside New Zealand is retained. For certificates issued in New Zealand, the requirement for these to be in the prescribed form is replaced with a requirement that certificates must contain prescribed information.
Clause 79 amends section 106 by inserting 4 new paragraphs into subsection (1), which lists different circumstances in which an enduring power of attorney ceases to have effect. Under those new paragraphs, an enduring power of attorney will cease to have effect when—
it is revoked by notice given under new section 95A to the attorney or attorneys (new paragraph (ab)):
a donor, by notice in writing, revokes the appointment of the attorney while mentally capable of doing so (new paragraph (ba)):
in the case where more than 1 attorney is appointed under a power of attorney, with joint but not several authority, the donor, by notice in writing, revokes the appointment of one of the attorneys while mentally capable of doing so (new paragraph (bb)):
in the case where more than 1 attorney is appointed under the power of attorney, with several authority or with joint and several authority, the last remaining attorney has his or her appointment revoked under new section 106A(1) or dies or is adjudged bankrupt or becomes incapable of acting in any of the ways specified in the paragraph (new paragraph (ea)).
Clause 79 also makes consequential amendments to section 106(1)(d) and (e), to replace outdated references, and to section 106(2), to include a reference to new paragraph (ba).
Clause 80 inserts new section 106A, which says if an enduring power of attorney appoints more than 1 attorney, with several authority or with joint and several authority, the donor may, by notice in writing, revoke the appointment of 1 or more of the attorneys while mentally capable of doing so. New subsection (2) provides, to avoid doubt, that the revocation of the appointment of 1 or more of the attorneys does not result in the power of attorney ceasing to have effect if there is at least 1 remaining attorney. This contrasts with the position of attorneys with joint but not several authority.
Clause 81 inserts 2 new regulation-making powers into section 112. New paragraph (bab) allows regulations to be made that prescribe a form of standard explanation for a witness to give to a donor. This power corresponds to the provision in new section 94A(6A). New paragraph (bc) allows regulations to be made that prescribe information for certificates for the purpose of any medical examination or assessment under Part 9, including a certificate under new section 99D(1).