Disability advocates in New Zealand are concerned with a recent rise in guardianship applications. From 2012 to 2021, applications for guardianship of a person under New Zealand’s Protection of Personal and Property Rights Act (the “PPPR Act”) increased by 85%.  

But what explains this rise?  

Three main factors caused the increase in applications: (1) an ageing population structure; (2) widespread ignorance of the Enduring Power of Attorney (the “EPA”) mechanism; and (3) changes in security measures by important organizations.  

3 Reasons for Increased Guardianship Applications 

Ageing Population à Most of New Zealand’s guardianship applications are in respect of those aged 65 and over. With ever-improving health care, a declining fertility rate and a large cohort of adults aged 45 to 64, their population will only grow older.  

People Unaware of Better Alternatives à Many New Zealanders would be better off arranging an EPA instead of applying for guardianship. EPAs (similar to Canada’s Continuing Powers of Attorney) are not just for the elderly and can act as insurance for any future accidents. Applying for guardianship through a court is significantly more expensive than setting up an EPA earlier in life.  

Tightened Security Measures at Important Agencies à Because of security issues like money laundering and identity theft, places like banks, hospitals and governments have tightened their customer identity requirements. Agencies nowadays want to be sure they are always dealing with the customer or client directly, rather than through another individual. This means that managing the affairs of other persons has become a lot more difficult absent a guardianship (or EPA) arrangement.  

Take Away 

With populations ageing in developed nations around the globe, policymakers must take steps to avoid a similar guardianship problem in their respective locales. Options for preventative measures include a more centralized and user-friendly system for creating and storing Power of Attorney documents, creating narrow security exceptions at important agencies for customers with capacity concerns, and greater public education on the benefits of using a Power of Attorney instead of seeking guardianship. 

Thank you for reading and have a nice day!  

Ian Hull and James Macfarlane

Source: Emma Hatton, “Disability advocates concerned over rise in guardianship applications”, Newsroom (5 July 2022), online.