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Problems for Family by Not Leaving a Will Hong Kong

Problems for Your Family by Not Leaving a Will

Test Blog

Problems for Your Family by Not Leaving a Will

January 27, 2021 by OLN Marketing

When someone passes away without having put into place a valid will, the ‘Law of intestacy’ governs the administration and distribution of their estate. In Hong Kong, the two key pieces of this legislation are the Intestates’ Estates Ordinance (Cap. 73) (the “IEO”) and the Non-contentious Probate Rules (Cap. 10A) (the “Rules”).

Before dealing with the deceased’s estate, a Grant of Letters of Administration must be obtained from the Probate Registry. Individuals who are allowed to apply for a Grant of Letters of Administration of the deceased’s estate are those set out in rule 21 of the Rules, in the following order of priority:

1.    A surviving spouse
2.    Children
3.    Parents
4.    Siblings
5.    Grandparents
6.    Uncles and aunts.

Those who are successful in obtaining a Grant of Letters of Administration are the administrators and are empowered to deal with the estate in accordance with the IEO.

After obtaining the Grant of Letters of Administration and having arranged for the funeral of the deceased, the administrator should first collate all the assets of the deceased and settle any debts and expenses. After that, the administrator should distribute the estate to the beneficiaries in accordance with section 4 of the IEO, with the table below illustrating some examples of entitlement under section 4 of the IEO.

Order of Entitlement When There is No Will

 Surviving RelativesStatus of Other RelativesEntitlement Arrangement
1.SpouseNo issue* of the deceased, parent, full sibling or issue* of full sibling All to the surviving spouse
2.Spouse and issue* of the deceasedOther relatives immaterialThe surviving spouse takes the personal chattels, HK$500,000 and half of the residuary estate. The other half is held on statutory trust** for the surviving issue*.
3.Spouse and one or more of the following relatives, namely:
parent or
full sibling or
issue* of full sibling 
 The surviving spouse takes the personal chattels, HK$1,000,000 and half of the residuary estate. The other half is held for the surviving parent(s) or on statutory trusts for the surviving full sibling(s).
4.Issue* of the deceasedNo spouseAll to the surviving issue* on statutory trust. 
5.Parent(s)No spouse, no issue* of the deceasedAll to parent(s)
6.Full siblingsNo spouse, no issue*, no parentAll to full siblings on statutory trusts**
7.Half siblingsNo spouse, no issue*, no parent, no full siblingsAll to half siblings on statutory trusts**
8.Grandparent(s)None of the aboveAll to grandparent(s)
9.Full uncles and auntsNone of the aboveAll to full uncles and aunts on statutory trusts.
10.Half uncles and auntsNone of the aboveAll to half uncles and aunts on statutory trusts.
11.None of the above relatives All to the Hong Kong Government as unowned property.
    
*Issue in succession law means the descendant of a person, such as children and grandchildren.
**For details on statutory trusts, please refer to the IEO

Despite the prescribed entitlement under the IEO, beneficiaries of an estate may sometimes redistribute their entitlement through a Deed of Family Arrangement executed by all beneficiaries and setting out the agreed redistribution of the deceased’s estate. Do note though that the redistribution through a Deed of Family Arrangement may attract stamp duty. 

While the law prescribes a specific priority for the distribution of an intestate’s estate and may leave certain wiggle room for beneficiaries to alter their entitlement, it would certainly be useful to make a valid will to ensure your estate will be inherited exactly as planned. 

If you have any questions or would like to obtain further information on our probate and estate planning services, please contact one of the members of our Probate and Estate Planning team, who are listed here: https://oln-law.com/probate-estate-planning.  

This article is for information purposes only. Its contents do not constitute legal advice and readers should not regard this article as a substitute for detailed advice in individual instances.

January 2021

Filed Under: Private Client – Estate Planning & Probate

OLN Lawyers Contribute to Lexis Nexis on Start up Sale & Purchase

January 26, 2021 by OLN Marketing

Sharing their knowledge and expertise on Start up Sale and Purchase Agreements, Partners Anna Chan and Victor Ng have contributed to the ‘Hong Kong Encyclopedia of Forms and Precedents’ by LexisNexis Second Edition, 2020 Reissue. This is Hong Kong’s only collection of precedents which covers all the key areas of commercial law and general practice.

Please click here for more information.

Filed Under: Startups & Venture Capital

Hong Kong’s broken court system is in urgent need of repair as Covid-19 exposes cracks

January 22, 2021 by OLN Marketing

This opinion article by Gordon Oldham was originally published in the South China Morning Post on 28 December 2020. 

In November, President Xi Jinping reiterated his call for “staying on the path of socialist rule of law with Chinese characteristics” and that all members of China’s legal community must “ensure loyalty to the party, the country, the people and the law”.

These comments further fuelled debate in Hong Kong about the integrity of its judicial independence. Yet Hong Kong’s extensive legal community is watching how the situation evolves while totally ignoring the elephant in the courtroom. Hong Kong’s court system is broken. The time it takes to get a civil matter in front of the courts, including matrimonial proceedings, is ridiculous. Justice delayed is justice denied.

Our court system resembles a much-admired vintage Rolls-Royce which still leads with its iconic lady, the rule of law. But, unfortunately, the leather is shabby, the paintwork hasn’t been touched up for decades, the engine needs a complete overhaul and the electronics are sub-par, to say the least.

On top of all this, the courts are chronically ill-equipped to cope with Covid-19. The closure of Hong Kong courts from February-April during the first wave of infection affected nearly 20 per cent of the annual caseload, an estimated 90,000 cases. The courts resumed but with intermittent restrictions until this fourth wave. The courts remain open but with enhanced social-distancing measures, which will once again reduce the number of hearings and tribunals.

The human cost of these extended court delays and logjams to our society is extraordinary. Consider divorcing couples: before the pandemic, they were waiting up to nine months for a hearing due to the serious backlog in the family courts. Now, with court closures and social-distancing measures, there are additional delays, causing further suffering for these families, especially children, in the already painful process of divorce. 

Jarndyce versus Jarndyce, a fictional court case created by Charles Dickens in Bleak House, concerned a High Court matter over a sizeable inheritance, which went on for so long that it survived through three generations. It eventually concluded in favour of the plaintiffs, but as the whole estate had, by then, been entirely devoured in legal fees, the exercise proved futile. This was Dickens’ criticism of the long drawn-out and expensive nature of the court, in which he advises any would-be plaintiffs: “Suffer any wrong that can be done you rather than come here!”

These are wise words in any jurisdiction – avoid court if you can and settle the matter. But it is especially pertinent if we look at Hong Kong’s broken court system. A plaintiff bringing a claim to the High Court today may have to wait for up to 18 months for a hearing. Even with a successful judgment, the enforcement of the ruling is far from certain.

The High Court in Admiralty. Hong Kong is not only among the top 10 per cent most expensive jurisdictions for litigation, but also among the slowest 20 per cent. 

This isn’t just the case for plaintiffs. There are many defendants with claims against them which transpire to be without merit, but only after they have spent significant amounts on legal fees and waited forever to defend against them. For plaintiffs, it is distressing to learn that, despite a meritorious case, they will come before the court only after the defendant has had the time to dispose of any assets or otherwise plead poverty.

Even with a successful judgment, the enforcement is far from certain and may well double the time the whole process takes. Throw into the mix the appeal process, which can double once again the time a party is in court and it’s hardly surprising that the legal system in Hong Kong is a source of much angst and exasperation for both lawyers and the general public.

This state of affairs has nothing to do with the impressive quality of our judges. Our judiciary does a wonderful job and we owe them our full support. It is simply a result of the lack of support staff and judges, and the prevailing ingrained, anachronistic ways of doing things. Examples of these include the lack of e-filing and the centuries-old habit of coming to court with a multitude of box files where an iPad would suffice.

To obtain a wider perspective, OLN Oldham, Li & Nie recently undertook a survey of litigation processes in 54 jurisdictions across the globe through Globalaw, an international network of law firms that it helped create.

Of these 54, it was found that Hong Kong was not only among the top 10 per cent most expensive jurisdictions for litigation, but also among the slowest 20 per cent. Hong Kong is rightly proud of its legal system, but like a lovely old Rolls-Royce, we are very expensive, slow and in desperate need of an overhaul.

Other jurisdictions have shown a willingness to adopt technology to strengthen the efficacy of their court systems and this has served them well through the pandemic. For example, England has been using videoconferencing and telepresence solutions in their court systems for years. Singapore has had paperless courts since 2000, enabling them to operate throughout the pandemic with the use of the e-filing system.

In Hong Kong, we urgently need to double down on our efforts and sharpen our focus to undertake the repairs necessary for the court system. We must completely renovate the infrastructure of our legal system to stop it from continuing to impede the efficacy of our courts so they work for the benefit of members of the public, not lawyers.

If we want to be proud of our legal system, let’s start with overhauling the court system. We live in the 21st century, not alongside Dickens.

Gordon Oldham is senior partner at OLN Oldham, Li & Nie – Solicitors. He is a veteran Hong Kong lawyer and businessman.

Filed Under: Dispute Resolution

OLN achieves strong rankings in Legal 500 Asia Pacific 2021

January 14, 2021 by OLN Marketing

OLN has once again been endorsed by Legal 500.

In the Hong Kong section of its Legal 500 2021 Asia Pacific directory, OLN is ranked for these two practice areas:

  • Intellectual property
  • Labour and employment

With our lawyers recommended as followers:

  • Intellectual property: Vera Sung
    • Other key lawyers:
      • Anna Chan
      • Eunice Chiu
      • Evelyne Yeung
  • Labour and employment: Anna Chan
    • Other key lawyer:
      • Victor Ng

Legal 500’s commentary included:

Intellectual Property:

‘Well-established independent Hong Kong-based firm Oldham, Li & Nie provides ‘concise and accurate advice‘ to local SMEs, China-based corporates, and multinational entities on brand protection throughout Greater China. Team head Vera Sung’s broad IP offering includes expertise across trade mark, patent, and copyright matters, enabling her to provide effective advice to many international clients seeking to preserve and protect their brand throughout the region.’ 

Labour and Employment:

‘Anna Chan not only well-versed across a range of contentious matters but also well-placed to structure corporate tax-efficient remuneration packages, by virtue of her ancillary tax advisory expertise.’

The Legal 500 Asia Pacific 2021 is now available to view online. You can see the full results at:

https://www.legal500.com/firms/30993-oldham-li-nie/30842-hong-kong-hong-kong/?layout=asia-pacific&token=d9d71f53ac6572f267a067cd8f62ee64

Filed Under: News

OLN Ranked in Chambers 2021 (Global and Asia-Pacific)

December 18, 2020 by OLN Marketing

We are delighted to announce Oldham, Li & Nie has again ranked in the Chambers and Partners Global and Asia Pacific 2021 directory.

Chambers Global

Departments:

  • Corporate/M&A: Independent Hong Kong Firms – Band 3
  • Dispute Resolution (International Firms) – Recognised Practitioner

Lawyers:

  • Gordon Oldham, Corporate/M&A – Senior Statesperson
  • Tracy Yip, Corporate/M&A – Band 2
  • Richard Healy, Dispute Resolution – Band 4
  • Vera Sung, Intellectual Property – Recognised Practitioner

Chambers Asia Pacific

Departments:

  • Corporate/M&A: Independent Hong Kong Firms – Band 3
  • Family/Matrimonial (International Firms) – Band 3

Lawyers:

  • Gordon Oldham, Corporate/M&A – Senior Statespeople
  • Tracy Yip, Corporate/M&A – Band 3
  • Richard Healy, Dispute Resolution – Band 4
  • Stephen Peaker, Family/Matrimonial – Band 3

About Chambers Rankings

Chambers rankings offer reliable recommendations on the best law firms and lawyers around the globe and in Asia-Pacific. Chambers has been the leading source of legal market intelligence for over 30 years now. Especially in the Asia-Pacific-wide rankings it covers the most internationally important areas of law, such as Arbitration, Capital Markets, and Corporate/M&A.

Filed Under: News

OLN Promotes Victor Ng, Jonathan Lam and Yvonne Kong to Partner and Caroline Choi to Of Counsel

December 1, 2020 by OLN Marketing

The Firm Expands its Tax Advisory, Private Client and Matrimonial & Family Law Departments

1 December 2020 (Hong Kong) – Oldham, Li & Nie (OLN) is pleased to announce the promotion of Victor Ng, Jonathan Lam and Yvonne Kong to the partnership and Caroline Choi as Of Counsel (California, USA), with effect from 1 December 2020. 

Victor Ng – As a dual-qualified Hong Kong lawyer and member of the Hong Kong Institute of Certified Public Accountants, Victor is uniquely positioned to provide clients with comprehensive advice on international tax planning matters covering cross-border corporate and commercial transactions and investments involving Hong Kong, PR China and the EU. Prior to his legal career and joining OLN in 2013 as a trainee, Victor worked for Deloitte and PricewaterhouseCoopers advising on taxation matters in Hong Kong, internationally and the PRC. For more information on Victor’s practice and areas of expertise, please click here.
 
Jonathan Lam – Jonathan, who started at OLN in 2012 as a trainee, advises clients on commercial disputes and has acted in a number of high-profile landmark cases in the High Court and the Court of Appeal involving shareholders’ disputes, derivative action, debt recovery, civil fraud, insolvency and complex probate matters. In addition, Jonathan boosts the firm’s private client capabilities, by advising on estate planning, trust and probate matters. For further details on Jonathan’s practice, please click here.
 
Yvonne Kong 
– Yvonne joined as a trainee OLN in 2011 and specialises in Matrimonial and Family Law. She works extensively with local and expatriate clients on applications for divorce, financial applications and children matters. Yvonne has experience with helping clients obtain adoption orders, maintenance orders for children and applications for interim financial orders against deceased persons’ Estates. For more information on Yvonne’s profile and expertise, please click here.

Gordon Oldham, Senior Partner, said, ‘The Firm is delighted to promote Victor, Jonathan and Yvonne to the partnership, and Caroline as Of Counsel. They truly reflect OLN’s values through their professionalism and commitment to clients. As many organisations have faced and continue to face challenges as a result of COVID-19, our commitment to investing in people is greater than ever. Having the right people, with the right skills, and the right culture at the heart of our Firm positions us to support our clients and build on the success of OLN.’
 
—-

About OLN
Oldham, Li & Nie (OLN) is a leading independent Hong Kong-based law firm, whose commitment to professional excellence has been the cornerstone of the firm since its creation in 1987. OLN’s practice areas include:
•    Corporate and Commercial
•    Dispute Resolution
•    Divorce & Family Law
•    Insolvency & Restructuring
•    Intellectual Property
•    Insurance
•    Private Client Services

We currently have 45 lawyers, admitted to one or more jurisdictions, including Hong Kong, France, the United Kingdom, the United States, Australia and Canada. We also have a thriving China practice, driven from our Hong Kong and Shanghai offices and when necessary with our associate legal network in mainland China.

Victor Ng

Victor Ng, Partner
Tax Advisory & Private Clients

victor.ng@oln-law.com

Jonathan Lam

 Jonathan Lam, Partner
Dispute Resolution & Private Clients

jonathan.lam@oln-law.com

Yvonne Kong

Yvonne Kong, Partner
Matrimonial & Family Law

yvonne.kong@oln-law.com

Filed Under: News

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