Tackling succession

This is the first part of a two-part series looking into the process of succession and what support is available to whānau.

Succeeding to land interests will help deliver $2.3m in unclaimed dividends.

Whānau who have not fi led for succession after a shareholder has passed on are among those entitled to $2.3 million in unclaimed Ātihau-Whanganui Incorporation dividends.

Ātihau-Whanganui Inc launched a new drive at the end of last year to fi nd and connect missing shareholders with the unpaid dividends owed to them. Of more than 9000 shareholders, 5000 are deemed missing because their contact details are unknown.

Jonelle Hiroti-Kinane, Shareholder Engagement Officer, said one of the reasons names and contact details are missing is because an original shareholder has passed away and their whānau have not completed succession (when shares are transferred from a person who has died to those whānau who are entitled to them).

There are several reasons why succession might not be completed.

“Some whānau may not know about the shareholding or that they have money owing to them. Others are not ready to arrange succession (they might still be grieving), or are holding back because they are unsure of the process,” says Jonelle.

“Where a shareholder has passed on, their descendants must go through the Māori Land Court to succeed to their loved one’s Ātihau-Whanganui shares. They can then claim their dividends from the incorporation. That process can sound daunting but it is just something we need to do. The longer you leave it, the harder it can be to assemble the information and make the connection.”

Filing for succession can be a lengthy process because it is thorough, Jonelle says. It can take anywhere between three and 12 months, and the timeframe depends on different factors.

But support is available. Ātihau- Whanganui Inc has a succession information pack that details the various ways to go about succession, including information about succeeding to shares individually or vesting shares in a whānau trust.

“Every case is different and it’s up to the whānau to make the best decisions for their situation on how to look after their land interests – but we are here to help them with the process,” says Jonelle.

“Staff at the Māori Land Court are also really supportive. They deal with all the different types of succession and are very good at guiding g people through the process.”

The Māori Land Court holds regular clinics across the country to provide information, advice and assistance. stance. Dates and locations for each clinic in 2020 are available through the District Offices, the National Pānui, or the Court’s website www.maorilandcourt.govt.nz.

Amiria Joseph-Wiari, Deputy Registrar at the Māori Land Court in Whanganui, says whānau are also encouraged to contact Court staff to talk about succession.

“Understanding what succession is and how to go about it is the fi rst barrier for many whānau. Secondly, the application form itself is quite long so completing and fi ling an application is a time-consuming task.”

“We can walk whānau through the whole process and help them understand not only how to fi ll out the application but the court process, what they can expect at the court sitting, and the different parts of succession.”

It is important early in the process to talk as a whānau about succession, Amiria says.

“One of the biggest issues when dealing with succession is if whānau don’t agree or don’t understand who is entitled to succeed – for example, where there are whāngai. If these things have not been discussed and worked through prior to the Court sitting, the process becomes lengthy and that doesn’t help whānau resolve issues. If whānau are on the same page and have a collective understanding it makes succession easier.”

Next issue: How to prepare for the process.