OLN

Will

ABCs of Charitable Giving

by

The most beautiful bequests fulfil the dreams of their donors. Donors make charitable bequests in their wills in the hopes of leaving the world a slightly better place.

Types of bequests

Charitable bequests can be general, demonstrative, specific or residuary gifts. A general bequest is the gift of a specific amount of money or asset to a charity, without specifying how it should be used. A demonstrative bequest is a gift of a specific asset by the donor, such as an art piece, to a charity. A specific bequest is the gift of a specific amount of money or asset to a charity for a targeted purpose, such as funding for a research project. A residuary bequest is a gift of the remainder of a donor’s entire estate after all other bequests in a will have been made.

The type of charity that one selects may be cultural, environmental, scientific/medical, political or specifically targeted at a disadvantaged group/minority. For example, a donor may choose to support a cultural institution, such as a museum or a theatre, to promote arts and culture. They may choose to support an environmental organization, such as a wildlife conservation group, to protect the natural world. Scientific and medical charities, such as those focused on cancer research or disease prevention, are also popular choices. Political charities, such as those advocating for human rights or social justice, may also be considered. Finally, donors may choose to support charities that target specific groups, such as the elderly or those with disabilities.

Contact the charity

It is always a good idea to contact the charity directly to discuss a bequest in order to better understand their specific needs and their ongoing or latest initiatives. This can help ensure that the bequest is used effectively and efficiently and equally importantly, that the donor’s goals are aligned with those of the charity. Charities may also be able to provide guidance on the best way to structure the bequest, and may be able to offer recognition or other benefits (e.g., tax deductions) to the donor. The donor’s solicitor can review the guidance provided by the charity when drafting the donor’s will and/or trust document.

Targeted or general bequests can be made to specific charities, depending on the donor’s goals and preferences. A targeted bequest is a gift to a specific charity or research program, while a general bequest is a gift to a broader category of charities or causes. For example, a donor may choose to make a targeted bequest to a favourite hospital or research institution, or a general bequest to support medical research more broadly.

Perpetual/lump sum donation?

Perpetual or lump sum bequests can also be made. A perpetual bequest is a gift that is intended to last indefinitely, such as an endowment that provides ongoing funding to a charity. This type of bequest would require careful drafting by the donor’s solicitor in terms of ongoing management of the endowment fund. A lump sum bequest is a one-time gift of a specific amount of money or asset. Perpetual bequests can provide long-term support to a charity, while lump sum bequests can provide immediate/short to medium term funding for a specific project or initiative.

Always consider taxation

When making a charitable bequest, it is essential to consider taxation. In most jurisdictions, charitable bequests are eligible for tax deductions and possibly other benefits. Donor-advised funds, popular in the US and the UK, offer a flexible solution, allowing donors to make their gifts and then recommend how the funds are used over time. This approach can be particularly useful in instances where living donors are undecided about a specific charity but wish to take advantage of the available tax deductions immediately. The drawback is a loss of control over how funds are disbursed as the institution managing the donor advised fund takes control of the fund.

Bequests are revocable

If circumstances or affiliations change during a donor’s lifetime, the revocation of a charitable bequest can be made by asking a solicitor to help write a new will or a codicil to the existing will. This can be done at any time and can help ensure that the donor’s wishes are respected and their goals are achieved.

Charitable bequests can be a powerful way to make a positive impact. By understanding the different types of bequests, selecting charities that align with one’s goals and considering taxation and other implications, donors can ensure that their bequests are used effectively and efficiently to achieve a better world.

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

by

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

by

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.