will…
A
n alarming number of
people living in Hong
Kong do not have a will.
Did you know that by not
having a will, you’re leaving the fate of
your estate to the SAR’s intestacy laws?
To find out just how widespread
this problem is, The Henley Group
commissioned a study. CEO Mark
Rawson explains, “A shocking 70 per
cent of expatriates in Hong Kong do
not have a will. What is a surprise is
that expatriates, who are more likely
than the average man to have assets of
value, would be so unconcerned about
making a will.”
Most of us know we should
write a will, especially once we’ve
had children, but many still put it
off again and again. “Perhaps it’s
the fear of mortality, or that it will
cost a lot of money, or be overly
complicated,” Mark reckons, and adds
that complacency may be another
factor. “One assumption many people
make is that if you die without a will,
the surviving spouse gets the entire
entitlement. However, according to
Hong Kong laws, if the person has
surviving parents, they can [also] be
beneficiaries,” Mark points out.
If children are involved, then the
intestacy laws recognise illegitimate
and adopted children as well as
those who are legitimate, but not
stepchildren, unless they are legally
adopted.It’s worth noting that same-
sex marriages are not recognised in
Hong Kong, and are classified as
common-law partners, who inherit
nothing.
It is often marriage or the arrival
of the first child that prompts a
person to finally draft a will. Even
so, 48 per cent of those parents The
Henley Group surveyed had not done
so, which Mark finds “particularly
alarming” because, in the event that
both parents die at the same time
and without a will, the state would
appoint guardians. “People assume
that a relative can jet in and pick up
the kids,” Mark explains. “This is not
the case. Until court formalities are
resolved, children may be taken into
[state] care.”
You can avoid all of these potential
landmines and ensure that your wishes
are fulfilled simply by drafting a will
now, before it needs to be executed.
For the children
Protecting children from possible
government interference is the number
one reason Asa Wilkins gives for
writing a will. Asa, the director of
Phoenix Wills, says, “The advice is
the same anywhere, but most expats in
Hong Kong are a long way from home
and their natural support group, which
makes things much harder.”
Phoenix Wills provides clients
with a list of things to consider when
preparing a will. Top of the list: Who
should be the executor? and, who
should be the children’s guardian?
This last one can be particularly
problematic if the parents have no
It’s a task almost everyone puts off. But
Zara Horner
discovers that
writing a will doesn’t have to be a painful experience, and that
the peace of mind it brings is well worth the time and effort.
brothers or sisters, or have ageing
parents who are too old to care for a
child, and the instructions haven’t been
spelled out in a will.
“With intercultural marriages, the
couple may have very different ideas
on who should look after the children,
and it is not always easy finding a
compromise that both sides are happy
with,” Asa says.
Jessica Park, the managing
director of Professional Wills, says
making a will “should be a no-
brainer!” She adds that if there are
competing family members, real
problems can arise.
When it comes to guardianship,
“It could take months for the family
court to reach a decision,” she says.
“And if a resolution can’t be found,
the children will enter the orphanage
system and be available for adoption. It
makes one shudder to think that some
parents have not appointed guardians
in a will.”
Simply put, a will is about control.
It legally binds a person’s wishes,
preferences and directives. Mark from
The Henley Group, adds: “Even with
a will, probate – the administrative
process – can take three to six months,
or longer, depending on the complexity
of the estate. But without a will to
provide instruction, the process can
take a lot longer and prove a harried
journey for dependents.”
A will can be simple, but it is
critical that it’s correctly structured,
names an executor, identifies
where there’s a
October 2013
63
