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Succession of Chinese Nationals of the HKSAR Estate in the United Kingdom (UK)

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Hong Kong permanent residents may have assets in various other jurisdictions.  One of the most common emigration destinations in recent years is the UK. 

There are many common characteristics between the succession law of deceased’ estate in the UK and in Hong Kong.  

The deceased has a Will governing estate in the UK

If the deceased has a Will governing estate in UK, the executor appointed with his/her named in the last Will of the testator usually applies for probate through the local Probate Registry in the UK to deal with the deceased’s estate. The executor will then follow the Will and distribute the estate of the deceased.

The deceased does not have a Will governing estate in the UK

If the deceased does not have a Will governing his or her immovable estate, the succession of the estate is usually governed by statutory law and the person(s) who inherit your property is governed by the statutory rules of intestacy. In general, the successors will be your closest surviving relatives in accordance to the classes listed out in the legislation, depending on the nature of marriage of the deceased and whether the deceased has any children. Please see the table below for details:

ClassDetails
Has spouse but no children, parent(s) or sibling(s)The spouse (or civil partner) will inherit all of the estate
Has both spouse and childrenThe surviving spouse (or civil partner) will inherit:
  • all personal belongings
  • first £250,000 of the estate (£125,000 if the death was before 1/2/2009)
  • a life interest in half of the remainder

The children will inherit the remaining half of the estate. If the children of the deceased have died, their share of the inheritance go to their children equally.  
Has spouse, no children but has parent(s) or sibling(s)The spouse (or civil partner) will inherit:
  • all personal belongings
  • £450,000, and
  • half of the residue

The remaining half goes to surviving parents or to the siblings (if the deceased has no parents or parents were dead).
Has no surviving spouseThe surviving relatives will inherit in priority order as follows:
  1. Children, grandchildren, great-grandchildren
  2. Parents
  3. Full-blood siblings or their descendants
  4. Half-blood siblings or their descendants
  5. Nieces and nephews
  6. Grandparents
  7. Full-blood uncles and aunts or their descendants
  8. Half-blood uncles and aunts or their descendants
  9. The Crown
Note: The right of inheritance of subsequent categories do not begin until those in a prior class is exhausted.
Has no relativesIf there are no surviving relatives, the estate is classed as ownerless property (‘Bona Vacantia’) and goes to the Crown.

Disclaimer: This article is for reference only. Nothing herein shall be construed as Hong Kong legal advice or any legal advice for that matter to any person. Oldham, Li & Nie shall not be held liable for any loss and/or damage incurred by any person acting as a result of the materials contained in this article.

平安三宝的各项要求

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与其他发达的城市一样，香港也正面临人口老化的问题。截至2021年，香港人口的年龄中位数为46.3岁1。根據政府統計處的人口推算，65歲及以上的長者人數佔全港人口的比例，將會由2022年的20.8%，逐步增长至2028年的25.3%，并进一步攀升至2069年35.1%2。持续上升的长者数目，意味着社会对各项安老及医疗服务的需求也将会进一步增加。

有见及此，政府一直致力向大众推广生死教育，力求打破围绕死亡的禁忌，协助大众以积极的态度看待死亡，并了解更多有关「平安三宝」的细节和重要性，即遗嘱、持久授权书(EPOA)、和预设医疗指示 (AD)。

「平安三宝」分别为:-

  • 遗嘱（俗称「平安纸」）：遗嘱的执行主要受《遗嘱条例》（第30章）所规限。遗嘱的订立旨在按照立遗嘱人的指示，分配其身故后所遗留的资产。
  • 持久授权书 (EPOA)：EPOA的执行、登记、权力范围均受《持久授权书条例》（第501章）所规限。EPOA 的訂立主要依照授權人的意願，指定一名或多名受權人在其失去精神行爲能力時，管理其財政事務。
  • 预设医疗指示 (AD)：虽然现时没有具体的法例规定AD的执行和权力范围。不过，医院管理局 （医管局）已发布了一份建议的AD表格格式，并为其辖下的临床医生公布了相关的指引。AD的订立旨在解决病人是否接受维持生命治疗。

为推广「平安三宝」的使用，政府已每年资助及举办有关生死教育的讲座，其中包括有关「平安三宝」的专题讲座。香港公共图书馆每年均与团体合办有关生死教育的讲座，当中也包括就「平安三宝」的主题3。而社会创新及创业发展基金（社创基金）也会资助有关生死教育和「平安三宝」的相关项目4。籍此希望能够预早备妥各方规划，让长者及其家人们能作更好的安排。

尽管「平安三宝」的概念已在社会上广为流传，但须注意的是，在实质操作上，三者的执行、登记要求和涵盖的事务范围皆不尽相同。若大众无法正确理解相关的法律要求，便很容易引起不必要的争议以及麻烦。

因此，我们希望通过下列表格，一表阐述三者的分别，协助大众进一步了解：

 遗嘱
（又称为平安纸） 		持久授权书预设医疗指示
表格形式没有法律指定的范本，但律师草拟的遗嘱将会考虑更多重要细节，例如更多后备安排以防止无人执行或承继遗产。有指定法律规定样本 没有法律规定，可以用医管局的指示文本
生效  当立遗嘱人过世的时候授权书中 指明的生效日期（一般为受权人有理由相信授权人正在失去精神行为能力的日期）当两名医生（病人的主诊医生和另外一名医生）诊断病人处于下列任何一种情况：
1. 病人的病情到了末期；
2. 病人处于持续植物人状况或不可逆转的昏迷状况；或
3. 病人处于其他晚期不可逆转的生存受限疾病  
财产事务执行人会按遗嘱的指示把遗产分配受权人可以动用授权人的资产去：
• 维持授权人的生活；
• 预防授权人的财产损失；
• 照顾受权人或其他人士的需要（如该些人士为授权人应合理地提供所需的人士）；及
• 向与授权人的亲属或有关连的人作出有限的季节性馈赠		不适用
范围以及限制立遗嘱人亦可指定自己丧礼的安排• 授权人可随意对授予受权人的权限附加任何限制
• 不牵涉授权人健康和福利相关的事宜		决定病者会否接受维持生命治疗。
注意：医生和院方都不能执行安乐死，也不会执行非法指示。
签署時的精神状态神智清醒，有精神行为能力，自愿作此指示，知道文书的性质和后果
签署要求  两位独立见证人面前签署。证人不必是律师一名医生以及律师面前签署（可同时在医生以及律师面前签署或在医生面前签署后，28天内在律师面前签署）
 
1. 注册医生
• 必须核证及信纳授权人在签署持久授权书时，「是精神上有能力行事的」
 
2. 律师
• 必须核证「授权人看似是精神上有能力行事的」		两个独立见证人面前签署：

1. 首名见证人
• 必须为注册医生，可选用一名不是其主诊医生或没有诊治过该作出者的医生

2. 第二名见证人
• 必须年满18岁
• 确认首名见证人已经解释指示的性质和后果

 
见证人的独立性  见证人不得为遗嘱上的受益人，否则见证人不会获得遗嘱上的馈赠见证的医生和律师不得为：
• 受权人
• 受权人的配偶；
• 与授权人有血缘或姻亲关系的人；或
• 与受权人有血缘或姻亲关系的人		两名见证人不得为下述文书的受益人：
• 签署人的遗嘱；或
• 签署人所持有的任何保险单；或
• 签署人订立的任何其他文书。
执行人/受权人的签署要求  执行人并不需要正式签署确认自己的委任。因此，一般建议立遗嘱人应先跟执行人商议好受权人需要在见证人面前签署确认不适用
注册要求  当遗嘱人离世后，当执行人需要安排遗嘱承办时，执行人需要向法庭存档遗嘱的正本如受权人相信授权人精神上无能力行事或正变为精神上无能力行事，必须尽快把有关的持久授权书拿到高等法院注册。
 
授权人可选择是否希望自己或他人收到该持久授权书注册的通知，以防止受权人滥用行使权。
 
其中一项有关授权人应否注册持久授权书的考虑是，一旦注册，该持久授权书的订立，以及授权人及受权人的名字将成为公开资讯。  		没有注册要求，但建议把正本的存放告知相熟的人，并把副本发给相熟的人。
撤销一般而言，遗嘱不会被撤销，除非：
• 立遗嘱人在签署遗嘱后，缔结婚姻；
• 立遗嘱人签署另一份遗嘱，借以撤销早前的另一有效的遗嘱；
• 立遗嘱人以有效地签立遗嘱的同样方式签立的遗嘱撤销书；或
• 立遗嘱人有意撤销该遗嘱的情况下，自行或使他人在其面前依其指示将该遗嘱毁灭		授权人在精神上仍有能力行事时，或在其康复后，可以主动撤销持久授权书；否则，持久授权书只会在有限的理由下被撤销，如：
 
• 受权人破产；
• 受权人或授权人死亡；以及
• 根据法院命令或指示		以书面方式制定   

如有疑问，烦请联系本行长者法律服务团队共同主管律师胡海伦律师和本行律师袁向凡律师。

1 政府统计处：<《香港人口趋势1991-2021》现已出版 [2022年12月29日]>，香港特别行政区政府统计处网页，2022年12月29日，https://www.censtatd.gov.hk/en/press_release_detail.html?id=5338，2024年6月24日读取。

2 香港特别行政区新闻：<立法会六题：应对人口老化的措施>，香港特别行政区政府网页，2023年3月22日，https://www.info.gov.hk/gia/general/202303/22/P2023032200177.htm，2024年6月24日读取。

3 香港特别行政区新闻：<立法会六题：订立「平安三宝」>，香港特别行政区政府网页，2023年6月28日，https://www.info.gov.hk/gia/general/202306/28/P2023062800356.htm，2024年6月24日读取。

4 香港特别行政区新闻：<立法会六题：订立「平安三宝」>，香港特别行政区政府网页，2023年6月28日，https://www.info.gov.hk/gia/general/202306/28/P2023062800356.htm，2024年6月24日读取。

免责声明：本文仅供参考。本文中的任何内容均不得诠释为香港法律建议或向任何人提供的任何与此相关的法律建议。对于任何人因本文所含的内容而造成的任何损失和/或损害，高李严律师行不承担任何责任。

Ten Common Handwritten Will Mistakes

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Handwritten wills i.e., holographic wills are valid in Hong Kong and in most jurisdictions around the world. Perhaps the most famous holographic will was that of Napoleon Bonaparte, who seemingly had plenty of time on his hands while exiled on the island of St Helena in 1821. He wrote a whopping five long pages and numerous codicils by hand, which was the requirement under French law for a valid will, in the absence of a notary. After praising his loved ones and lashing out at each of his political enemies, he bequeathed to over 7,500 beneficiaries the contents of his entire estate, down to a pair of slippers. The beneficiaries were not only his immediate family members but everyone from his General Montholon (2 million francs) to regular soldiers (100 francs each) in his army. It took the executors of his will 40 years to complete their tasks. 

Handwriting your own will is likely to be easier than the task that Napoleon undertook, but here are some of the more common (but not all of the) pitfalls to avoid:

1. Not appointing a willing executor

There will be no one to execute your wishes in this instance and this will lead to administrative delays. The beneficiary entitled to your residuary estate has first priority to apply to be your executor by virtue of rule 19 of the Non Contentious Probate Rules in Hong Kong where there is no named executor willing to take on this role. Your residuary estate is the whole sum of your estate after deduction of your debts, taxes, funeral, legal and administrative expenses and distribution of your cash and specific gifts to your beneficiaries.

2. Being too specific or not being specific enough

You may bequeath your Rolex Explorer II watch to your son but you own two Rolex watches at the time of your death, none of which is the Explorer II. You may state clearly “I bequeath my grand piano to my cousin.” but it transpires that you have three cousins (who coincidentally all play the piano up to grade 8 level) at the time of your death. These are examples of gifts that are too specific or not specific enough.

3. Not updating your will 

If you marry, divorce, enter into a committed relationship or any combination thereof, there may be significant impacts on the validity of parts of your will. Some committed relationships that may be recognised under overseas laws are not recognised in Hong Kong. It is important to review your will at regular intervals in order to take stock of significant changes in your relationships and assets.

4. Writing only one will when you have substantial assets in another jurisdiction

The legal concept of domicile may be different from your birthplace, nationality and/or jurisdiction where you have permanent residency. Your domicile at the time of death affects your will. You may write a will in Hong Kong that can be overridden due to laws in another jurisdiction that do not allow you to leave out certain beneficiaries, for instance. It is important to consider the laws of the countries where your substantial assets are located.

5. Writing wills in every jurisdiction you have assets in but inadvertently revoking some of the wills

You may have carefully considered all your worldly assets and handwritten your wills in accordance with where your assets are located. One common pitfall is not making reference to your other international wills, such that your last will and testament referring to your assets in Canada may inadvertently revoke your prior last will and testament referring to the distribution of your assets in Hong Kong.

6. Improper execution of the will

In Hong Kong, two witnesses are required when you sign your will. They and their spouses may not be your beneficiaries. Your executor may be a witness to your will but again, this executor should not be a beneficiary if such executor is to be a witness to your will. In the absence of proper execution, the court must be satisfied that there is no reasonable doubt your purported will satisfies your testamentary wishes.    

7. Forgetting to appoint guardians including temporary guardians for your minor children

If both parents pass away, minor children without appointed guardians will become wards of the Social Welfare Department. It is important to consider appointing temporary guardians who reside in Hong Kong in the event that permanent guardians are overseas, again to avoid having children becoming wards of the Social Welfare Department during the time it takes permanent guardians to arrive in Hong Kong.

8. Forgetting to include back up beneficiaries, executors and guardians

No one knows with certainty when their time will come. It is entirely possible to outlive one’s beneficiaries, executors and/or appointed guardians, especially the longer that one lives. Some care needs to be taken to think through some possible alternatives in the event that these persons predecease you or refuse to act as your executor or as guardians of your children.

9. Keeping the will in your own safety deposit box at the bank

This is a very safe place to keep your will but is it too safe? In Hong Kong, singly and jointly held safety deposit boxes require a “Certificate for Necessity of Inspection of Bank Deposit Box”  issued by the Home Affairs Department before a deceased’s safety deposit box may be inspected. A bank official and two public officers authorised by the Secretary for Home Affairs must be present during the inspection. Keeping one’s will in one’s own bank safety deposit box (even jointly held) leads to administrative delay and this should be weighed against the security afforded by a bank safekeeping your will.

10. Not signing your will

Many people take the time to carefully put together a will and then trip up on the final step – they omit to sign the will properly or put off signing the will. This may be due to any number of reasons – not prioritising this important final step (life often gets in the way) or even due to an inability to find witnesses for the will. Unfortunately, an unsigned will is an invalid will.

The legal requirements for a validly written will are both easy and difficult to fulfill – easy in the sense that a handwritten will showing intention and capacity signed by an adult which is properly witnessed is a legal document in Hong Kong, yet difficult because there are some common pitfalls that many a do-it-yourselfer has failed to avoid.

Beat Napoleon Bonaparte and have your will professionally drafted. To celebrate the inauguration of our groundbreaking Elder Law Practice (the first of its kind in Hong Kong), we are proud to relaunch our hugely popular FreeWill initiative, an opportunity for Hong Kongers to have their wills prepared for a nominal donation to a registered charity. To find out more, visit our FreeWill campaign page.

Disclaimer: This article is for reference only. Nothing herein shall be construed as legal advice, whether generally or for any specific person. Oldham, Li & Nie shall not be held liable for any loss and/or damage incurred by any person acting as a result of the materials contained in this article.

高李严律师行在香港重新推出广受欢迎的「免费草拟遗嘱」计划 以庆祝推出首创的长者法律服务

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为了庆祝推出在香港首创的长者法律服务，高李严律师行（“OLN”）自豪地重新推出其广受欢迎的「免费草拟遗嘱」计划，该计划于2011年首次推出，在香港史无前例。OLN很乐意为任何向Child Welfare Scheme（（“CWS”），在香港注册的一间慈善机构）捐款2,900港元的捐赠者准备并见证签署一份简单并专业的遗嘱草拟*。

「我们很高兴向所有香港人重新推出我们的「免费草拟遗嘱」计划。我们认为，每个成年人至少应该写一份简单的遗嘱，将他们的资产留给他们选择的受益人，即他们自行选择的受益人。许多人认为他们不需要遗嘱，推迟签署遗嘱和/或不对他们的医嘱进行定期审查。另一些人认为准备遗嘱的成本太高，事情总会自行解决。我们的「免费草拟遗嘱」计划使完成遗嘱变得容易，同时通过帮助一个在香港注册已久的慈善机构回报社会。OLN选择CWS作为第一个受益于「免费草拟遗嘱」计划重新推出的慈善机构。这家在香港注册的慈善机构与尼泊尔基层的非政府组织合作，为尼泊尔小区的儿童、青少年和妇女及其家庭提供教育、医疗保健和社交机会。」OLN长者法律服务团队的联合负责人胡海伦律师（Helena Hu）说。

OLN的高级合伙人、长者法律服务团队的联合负责人高国峻律师（Gordon Oldham）表示：「我们还希望，「免费草拟遗嘱」计划将让人们意识到遗产规划的至关重要性。」「目的是帮助各个不同年龄的成年人认识到遗产规划中经常出现的复杂问题——遗嘱不仅简化了遗嘱检验过程，保护了亲人，还有助于明确一个人的人生目标和期望的遗产。」

CWS创办人Douglas Maclagan表示：「我们的慈善机构及重点关注儿童与青少年、妇女及其家庭的活动感谢高李严律师行的持续支持和善举。我们是2011年第一家受益于

「免费草拟遗嘱」计划的慈善机构，我们很荣幸有机会在「免费草拟遗嘱」计划重新推出时再次参与其中。我们祝愿高李严律师行作为香港长者法律服务的先驱取得巨大成功。」

惠及CWS的「免费草拟遗嘱」计划将于2024年6月3日启动，为期一个月。「免费草拟遗嘱」计划的所得款项将100%捐给CWS。其他已被OLN确定协作的香港慈善机构，将逐步推出「免费草拟遗嘱」计划。 如欲参与我们的「免费草拟遗嘱」计划，请填写登记表格。

如欲了解有关计划详情，请以电话（+852 2868 0696）或电邮（freewill@oln-law.com）联络我们的长者法律服务联合负责人胡海伦律师（Helena Hu）。

*「免费草拟遗嘱」计划适用于资产少于600万港元的人，而高李严律师行所提供的折扣适用于资产超过600万港元的人。

Debunking 5 Common Misconceptions about ESOP in Hong Kong

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Employee Stock Options Plans (ESOPs) are powerful tools for employee motivation and company growth. However, they are often misunderstood. Here, we debunk five common misconceptions about ESOPs and provide insights on creating effective plans.

1. One-size-fits-all Solution

Many assume ESOPs are a universal remedy. This is a misconception. Not all employees think long-term, shares alone may not incentivize them. Additionally, issuing shares dilutes current holdings. Consider rather a hybrid approach that combines ESOPs with short-term incentives.

2. Handling out shares guarantees employees’ motivation

    Distributing shares isn’t a surefire way to ensure employee motivation. Employees must understand the value of their shares and the benefits of the ESOP to feel motivated.

    Employers should consider conducting workshops and provide resources to educate employees about the ESOP.

    3. Just for big players

      There is a misconception that ESOPs are only suitable for large corporations. In reality, companies of all sizes can benefit from ESOPs. Craft your ESOPs to fit the specific needs of your company, regardless of its size or industry.

      4. Universal template

        Some believe that a single, universal ESOP template can fit all companies. This approach often fails to reflect the unique values, goals, and milestones of a company. In fact, customized, easy-to-understand ESOP plans are the key. Regular reviews and updates will keep your plan relevant and aligned with the company’s evolution.

        5. ESOPs hinder decision-making

          A common concern is that ESOPs can complicate decision-making processes. However, well-structured ESOPs can streamline these processes.

          Design tailored structures and buyback mechanisms to eliminate potential roadblocks. A well-executed ESOP can even promote collaboration and innovation, allowing employees to contribute meaningfully to the company’s strategic direction.

          Bonus: Don’t forget the legal ramifications. You mean to fail your ESOP if you just go for a set of short template documents. Partner with an experienced legal advisor to navigate the legal intricacies of ESOPs. This investment can save time, money, and headaches, ensuring your ESOP is legally sound and effective.

          Successful ESOP = clear communication + careful planning + transparency + tailor-made structure + regular review + expert advice

          Disclaimer: This article is for reference only. Nothing herein shall be construed as legal advice, whether generally or for any specific person. Oldham, Li & Nie shall not be held liable for any loss and/or damage incurred by any person acting as a result of the materials contained in this article.

          Your 55th Birthday Surprise – a Senior Consultant Agreement! What to Look for Before You Sign

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          On your 55th birthday, you receive a lovely congratulatory message from “Talent and Care Resources” (also known as HR when you first began your career). They inform you that henceforth due to the firm’s “corporate insurance policy” (or similar explanation) that you will no longer be Partner or Principal at your professional practice. Rather, you need to be labelled a Senior Consultant and your new consultancy agreement is attached for your kind attention. Before you eagerly sign on the dotted line, review in particular the following:

          1. Insurance policy

          Ask to review said insurance policy that has required this change. Perhaps you approved it many years ago and it should now be renegotiated/updated. In addition, check that the provisions of the new insurance offer that the existing provider has likely given you are satisfactory.

          2. Job description and duties

          These may not align with what is your current reality, particularly if it has been cut and pasted from your previous agreement. Overly broad and/or ambiguous descriptions may lead to disagreements later. If you are in doubt about your job description and duties as stated in your offer letter, it is better to bring this up now and get expectations aligned or re-aligned. Sometimes it is simply a question of HR not having been updated. Or you may not agree to or may not like an expanded territory under your purview. Make sure you are happy with your stated job description and expected duties.

          3. Compensation and benefits

          Verify your remuneration package including salary, commission, bonus, entitlements, and the payment schedule. Make sure you understand how your bonus and incentive entitlements are earned. Check that statutory benefits such as paid leave, MPF contributions and compensation insurance are still covered. Make note of the non-compulsory perks/benefits that your firm has provided you with in the past and that these have been retained in their entirety.

          4. Staff manual or employee handbook (“staff manual”)

          Your consultant agreement will likely refer to a staff manual or similar document. Again, you may have approved it or even had a hand in revising it in the past. Make sure you have access to and have read the current document before you sign on the dotted line, as the terms of the staff manual are typically incorporated into your consultant agreement. You may find some internal rules or regulations that you feel need to be discussed before you sign on. For example, there may be an internal regulation that the company may reassign or transfer you to another location at their discretion, as circumstances demand. This may be a non-negotiable for you and you may need to request confirmation in the consultant agreement that you will be not reassigned and/or transferred without your prior written consent.

          5. Non-compete and confidentiality clauses

          Review your non-compete clause carefully for time and geographical restrictions, in particular. Recent case law has shown that Hong Kong courts will not enforce overly broad and imprecise non-compete clauses, which must be reasonable in the interests of both parties and where the restriction must be no wider than is reasonably necessary to protect legitimate business interests. In fact, there is a global trend to limit the validity of these clauses, with the US Federal Trade Commission taking the lead by proposing to ban them altogether.

          6. Governing law and dispute resolution

          Make sure the governing law of the contract is that of the Hong Kong Special Administrative Region which assures you of all your statutory rights in Hong Kong. Note the process to resolve legal disputes. This should be checked in conjunction with the staff manual for the internal process to handle disputes related to ongoing employment.

          7. Termination and Severance

          Note the termination terms and severance provisions. Make sure you understand the notice period required of you by the firm and that it is not unreasonably long. Check for your entitlements in the event of any type of termination.

          The fact that your firm has committed to an insurance policy that limits the insured to those under a certain age does not mean that your rights and remuneration package should change. Do not be afraid to seek clarification about the terms in your consultant agreement. It can potentially save you and the firm hours of unnecessary discussions and possibly even litigation if you iron out ambiguities for your own and the firm’s benefit. Once you have established clarity and parity (and this may involve constructive negotiation and compromise), you will be well positioned to happily excel in your newish role and continue to make meaningful contributions to your firm.

          Disclaimer: This article is for reference only. Nothing herein shall be construed as legal advice, whether generally or for any specific person. Oldham, Li & Nie shall not be held liable for any loss and/or damage incurred by any person acting as a result of the materials contained in this article.