Te Ture Whenua Māori Act 1993 reform – One week left to make submissions!

Māori landowners wishing to make submissions on the draft Te Ture Whenua Māori Bill need to do so by Friday 7 August 2015.

The Bill completely overhauls the existing Māori land legislation and will repeal and replace Te Ture Whenua Māori Act 1993.  In this panui we focus on four crucial changes proposed in the Bill relating to whānau trusts that will have an impact on all Māori landowners.

Whānau trusts: Four crucial changes proposed in the Bill which will impact on all Māori landowners…

1. The establishment of a whānau trust on intestacy

A key change in the Bill relates to how estates of Māori landowners will be dealt with if they die without a will. If this occurs, and there is more than one eligible descendent to the person’s estate, the Bill will require that a whānau trust be established.

This is a significant departure from the current Act which does not contain any similar requirement.  Māori landowners who wish to transfer their Māori land interests to a specific whānau member(s) will need to make a will.

2. Establishing a whānau trust under a will

Under the current law an administrator of an estate can apply to the Māori Land Court to establish a whānau trust to give effect to a gift of Māori land or interests made under a Will.

Under the Bill a Māori landowner who wants to set up a whānau trust by their Will, will be required to complete a detailed declaration containing information which includes:

• The name of the whānau trust;
• The purpose(s) of the trust;
• Identifying the beneficial interest to be held as trust property;
• Whether the beneficial interest may be disposed of, and if so, any conditions or restrictions;
• Whether whāngai are included in the class of descendant beneficiaries;
• The name of each proposed trustee; and,
• Providing a power of appointment for further or replacement trustees.

3. Whānau trustee new obligations

The Bill will also affect the management of whānau trusts, including existing trusts, by imposing new obligations on trustees.

Key among these is that whānau trust trustees will be required to “at all times” keep their beneficiaries informed about the affairs of the trust and any matters affecting the trust property. This is a significant and potentially far-reaching new obligation.

4. New obligations for whānau trust trustees

The Bill will provide whānau trust beneficiaries with a number of new entitlements.  These include:

• The ability to have their details recorded in the Māori land register;
• Being entitled to attend and speak at meetings of owners as if the beneficiary were an owner of the land;
• Being entitled to vote at a meeting of landowners in certain circumstances; and,
• Being entitled to directly receive grants that may be made from income derived from the land as if the beneficiary were an owner of the individual interest.

We are able to provide advice about these changes or help you formulate your submissions on the Bill, but time is running out for the 7 August deadline.