The Overview of Estate Planning Services in Hong Kong
Although death is not a pleasant topic to talk about, early estate planning and writing a will in Hong Kong can ensure that a person’s wealth and assets are passed properly to desired loved ones and help to reduce taxes while ensuring that the wealth is preserved properly.
Why is a Will Helpful?
A person who has died without a will is referred to as ‘intestate’ and any beneficial interest they have in wealth and assets will be inherited according to Hong Kong’s Intestates’ Estates Ordinance. This means that the law will decide who inherits an intestate’s assets and in what proportions.
A well-constructed will is the only way of ensuring that a person’s wealth and assets are inherited and managed by desired people. This control over one’s assets is particularly important when said assets are split across different jurisdictions.
A clearly written will is also a way to avoid feuding beneficiaries later on and reducing stress and conflict between family members over inheritance matters.
Five Ways to Plan for Your Estate
1. Choose a Professional Executor
A professional executor is a person who will legally manage your assets and properties when a person is no longer able to do it themselves. It is recommended that executors should be someone trusted, either a lawyer, a friend or both in the best-case scenario. They should be loyal and reliable in order to follow through with the will.
2. Choose Who You Want to Decide for Your Health
An incapacitated person who is relying on life support or in a coma is able to choose someone to make health-related decisions on their behalf ONLY IF they have left a will that specifies who is given a special power of attorney beforehand.
The best person for this job maybe someone who understands the incapacitated person’s history and decisions, either choosing to fight for their lives or choosing the path with the least suffering.
3. Determine Who You Want to Handle Your Finances
Apart from the executor, there can also be another person assigned to handle a person’s finances by giving them a special power of attorney. This person will make ensure whatever financial responsibilities are taken care of and mitigate any losses that may be incurred by managing assets and wealth.
4. Name a Guardian for Your Children
As mentioned before, if a person dies intestate, the law will make decisions on their behalf – and this includes arrangements for the intestate’s children. In order to avoid this scenario, it is necessary to name a guardian for any children one might have.
A trustworthy guardian can ensure that the children are well taken care of and may help to manage any inherited assets and wealth on their behalf until they come of age.
5. Update Your Will as Needed
Wills will also need to be updated periodically subject to changes in assets, wealth, and relationships (whether one gets married or divorced for example).
For more information, contact us now and let us give you the service you deserve.