YIP, TSE & TANG, HONG KONG LAWYERS

What is a Will?

A Will is a legal document which records your intentions as to who receives your assets, who will manage your affairs and who will look after your children after your death.  If you do not have a Will at the time of your death, the above matters will be determined according to the laws of intestacy (i.e. having no wills). The manner of distribution under the "no-will" laws may not match your intentions.

When to Make a New Will ?

An existing will can be replaced by a new will. People make a new will because of the following possible reasons:-

• having just got married. Marriage revokes all earlier wills. No will may be needed.
• separation with the spouse, divorced or spouse's death.
• having a new child.
• having a big fortune e.g. inheritance, mark-six lottery winning.

Wills, Succession Planning and Estates

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. 

NOTES ON APPOINTING AN ESTATE AGENT

• estate agent practising in Hong Kong must be licensed. But it is easy find one who is licensed
• the appointment can be made in a way of "single agency" (i.e., the agent represents only the buyer) and “dual agency” (i.e. the agent represents both the buyer and the vendor)
• estate agent will sign with you an estate agency agreement.
• before signing you should understand the various terms, including validity period of the Agreement (usually 3 months) and agreed commission paid by buyer and seller (usually 1% each BUT the amount or % is negotiable) and other special terms of the Buyer (if applicable)
• ask for a receipt upon paying a fee

Where to Get information about a Property?

Buyer can confirm the following property information by search on the Internet, real estate agents, developers and the current owner and when necessary seek the service of a conveyancing lawyer:

• Name of current property owner and his/her ownership right
• Property age, gross area and saleable area of the property
• Information of area and environment surrounding the property
• Current property situation(owner occupied or leased)
• Current usage of the property: whether the use of the property is specified as residential
• Rates, Government rent, property maintenance cost and management fee,etc.
• Illegal structure (e.g. altered balcony) and maintenance order
• Consult the bank if the property can be mortgaged

Key elements on choosing a property

Key elements to be considered when choosing the property:

• Property value and affordability
• Property location and information of area surrounding the property
• Property age
• Size and property type
• Quality of building materials 
• Developer, property management and security control
• Uncompleted flat or completed flat (first hand or second hand)
• Environment, transportation, public facilities, school network and future development of the area
• Resale value of the property