Notes on appointing an estate agent
What is a Will? Real-Life Scenarios Illustrating the Impact of Life Events on Wills

Wills, Succession Planning and Estates and Real-Life Scenarios Illustrating the Importance of Wills

Esate Duty Abolished

Estate duty (inheritance tax or death duty) has been abolished in Hong Kong. Succession planning nowadays has become simpler. Legacies are not subject to Government tax unless a transfer of beneficial interests not within the scope of the laws of succession.

Wills are not just for senior citizens.  Wills are particularly important to parents who wish to provide their own children security. Children can be clear who will be taking their care should their parents or guardians come to an untimely death.

Some people do not have any obvious dependants. A Will can avoid the Government taking control of assets on his demise.

Simplest succession planning is by preparing a will. Our lawyers are in a position to carry out such a simple task. However, there many be some other related issues such as the dealing of assets in joint names, the freezing of assets before probate is granted. Our lawyers can provide you with up to date and timely advice on preparing your will and succession planning so that the assets are distributed according to the will. 

Real-Life Scenarios Illustrating the Importance of Wills

Scenario 1: Wills Are Not Just for Senior Citizens

Background: Kevin, a 35-year-old software engineer, has recently bought his first home and started a family. He realizes the importance of planning for the future, even at a young age.

Implication: Kevin decides to prepare a will to ensure that his assets are distributed according to his wishes and to provide security for his family. Without a will, his assets might not be distributed as he intends, and his family's future could be uncertain.

Outcome: By creating a will, Kevin ensures that his home and other assets will go to his wife and children if anything happens to him. This proactive approach demonstrates that wills are important for individuals of all ages, not just senior citizens.

Caveat: Young adults, especially those with assets and dependents, should consider making a will to ensure their loved ones are taken care of according to their wishes.

Scenario 2: Wills for Parents to Provide Security for Their Children

Background: Sarah and John are parents to two young children, Emily and Jack. They are concerned about what would happen to their children if they were to pass away unexpectedly.

Implication: Sarah and John decide to create wills that specify who will take care of Emily and Jack if they are no longer around. They also outline how their assets will be used to provide for their children's future.

Outcome: By making these arrangements, Sarah and John ensure that Emily and Jack will be cared for by trusted family members or friends and that their financial needs will be met. This provides peace of mind for Sarah and John, knowing that their children's future is secure.

Caveat: Parents should prepare a will to clearly state who will take care of their children and how their assets should be managed for their children's benefit.

Scenario 3: Wills for Individuals Without Obvious Dependants

Background: Michael, a single man in his 50s, has no children or close family members. He is concerned about what will happen to his assets when he passes away.

Implication: Without a will, Michael's assets could be taken over by the government upon his death. To avoid this, he decides to prepare a will to specify how his assets should be distributed.

Outcome: Michael's will ensures that his assets go to his chosen beneficiaries, such as friends, distant relatives, or charities. This prevents the government from taking control of his estate and allows him to support causes and people he cares about.

Caveat: Individuals without obvious dependants should prepare a will to ensure their assets are distributed according to their wishes, rather than defaulting to government control.

Scenario 4: Simplest Succession Planning Through a Will

Background: Linda, a successful businesswoman, understands the importance of succession planning. She wants to ensure that her assets are distributed according to her wishes and that her loved ones are taken care of.

Implication: Linda decides to prepare a will as the simplest form of succession planning. She consults with a lawyer to address related issues such as dealing with assets in joint names and the freezing of assets before probate is granted.

Outcome: By creating a will and seeking legal advice, Linda ensures that her estate will be handled smoothly and her assets will be distributed as she intends. This minimizes potential conflicts and complications for her beneficiaries.

Caveat: Preparing a will is the simplest form of succession planning. However, it is essential to consult with a lawyer to address related issues and ensure that the will is comprehensive and legally sound.

These scenarios illustrate the importance of wills for individuals of all ages and circumstances. Preparing a will ensures that assets are distributed according to one's wishes and provides security and clarity for loved ones. Seeking legal advice is crucial to ensure that the will is valid and addresses all relevant issues.