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Each country has different intestacy laws to deal with the distribution of assets of people who passed away without a valid will. Two important keys in this regard are the Intestate Estate Ordinance (Cap. 73) and the Wills Ordinance (Cap. 30). Learning about these laws can help you in the crucial event that your loved one dies intestate. The goal of these laws is to ensure a fair distribution of the deceased's estate among relatives. This article will discuss how assets will be divided, and what relatives can do to manage them. Intestate Estate Ordinance in Hong Kong According to the Intestates' Estates Ordinance (Cap. 73) when a person dies while not executing a will in Hong Kong, then the estate of that person will be distributed and that person is called an intestate in this case. There are many possibilities for someone not taking care of a will while they are alive, due to sudden illness, being away from relatives, new marriages, or various other personal reasons. If there are relatives who suddenly want to take care of the inheritance of someone who has died, and after checking it turns out that person has never made a will, then they must obtain a Grant of Letters of Administration from the Probate Registry. Those who are entitled to apply for the Grant of Letters of Administration for inherited assets are the people regulated in rule 21 of the Regulations. There are highest priorities starting from a surviving spouse, children, parents, siblings, grandparents, uncles and aunts. Those who are able to obtain a Grant of Letters of Administrations are able to deal with the estate in accordance with the Intestates Estates Ordinance. After arranging for the funeral of the deceased and obtaining the Grant of Letters of Administration, the administrator must settle any debts, expenses, and collate all the assets of the deceased. Now, the estate will be distributed to the beneficiaries in accordance with section 4 of the IEO, and will be explained below. Entitlement on Intestacy If there is only the spouse, no children/grandchildren of the deceased, parents, full siblings or children/grandchildren of full siblings, then the entitlement arrangement is handed over to the surviving spouse. If there is a spouse and children/grandchildren of the deceased and other immaterial relatives, the surviving spouse gets personal chattels and half of the residual estate and HK$500,000. The other half for statutory trust (refer to the Intestate Estate Ordinance) for the surviving children/grandchildren. For the spouse and one or more of the relatives such as parent or full sibling or children/grandchildren of full sibling, the surviving spouse gets personal chattels, half of the residual estate, and HK$1,000,000. The other half for the surviving parents or on statutory trusts for the full siblings. For no spouse and only children/grandchildren of the deceased, the entitlement arrangement is all for the surviving children/grandchildren on statutory trust. For no spouse, no children, only parents, all rights go to parents. If there are only full siblings, no spouses, children, or parents, all rights go to full siblings on statutory trusts. The law will continue according to who the recipient is, and who the remaining family is. For half siblings, grandparents, full uncles and aunts, half uncles and aunts, it will be handed over according to the administrator on statutory trusts. Especially for someone who has no relatives at all, everything will be taken care of by the Hong Kong Government as unowned property. Distribution of Estates (resume) The distribution of an intestate's estate will be sorted according to priority, starting from spouse and children, then parents, full siblings, half siblings, grandparents, full uncles and aunts, half uncles and aunts, and so on. If the remaining people in the family are a spouse and children, the spouse gets household items or personal chattels, HK$1,000,000 in cash, and part of the remaining property. The children will share the other half. If the deceased person only has a spouse without children, the spouse gets personal chattels, HK$1,500,000 in cash, and half of the remaining estate. The remainder of the estate will be divided between the deceased's surviving parents or surviving siblings. That order will continue to be repeated according to priority, unless there are special conditions where the person who died has no relatives at all, and the price will be managed by the Hong Kong Government as unowned property. Do you know the procedure of inheritance in Hong Kong? In case of inheritance, a legal personal representative must be appointed to manage the inheritance. This representative, known as an administrator, is usually the highest ranking relative according to inheritance rules. Administrators must apply for a Grant of Letters of Administration from the High Court Probate Registry before they can deal with the deceased's assets as we discussed above. Conclusion The intestate estate ordinance in Hong Kong provides a systematic approach to dividing the estate of a deceased person in the absence of a valid will. However, these laws may not reflect the deceased's personal wishes when creating their own will. Immediately make a will for your beloved family, because we can provide comfort for the family in the future, and also ensure that there is no will in your name that has been registered and could be considered fraud. Therefore, it is always advisable to seek professional legal advice and consider making a will and how assets will be divided according to one's wishes. Making a will is complex and there is a lot to take care of. Even though we already know the intestate estate ordinance, we still don't know exactly what we need to prepare to make a valid will. Knowing this, you need SMEBrother as your one stop solution for everything regarding wills. SMEBro provides services including: ✅ Estate Survey and Assessment: A comprehensive survey and assessment of the estate will be conducted to ensure that all assets and liabilities are clear. ✅ Legal process guidance: A professional legal team will assist you in completing various legal procedures required for inheritance distribution to ensure that everything is legal and compliant. ✅Careful follow-up throughout the entire process: We have professional teams from Hong Kong and Mainland China who are familiar with inheritance matters and can help you break cross-border barriers and successfully inherit your inheritance.

The estate of a person who dies intestate with an estate in Hong Kong shall be distributed in accordance with the provisions of the Intestates' Estates Ordinance, Chapter 73, Laws of Hong Kong, as follows (1) If there is only a spouse and no children, parents or full blooded siblings or heirs of full blooded siblings, the estate shall be inherited by the spouse.(2) If survived by a spouse and heirs, the spouse shall receive first an interest in the estate of HK$500,000 and the remainder shall be divided into two shares, one to be received by the spouse and the other to be equally divided among the children.(3) If the deceased leaves no children but leaves a spouse and any of the following: a parent, a full-blooded sibling or a child of a full-blooded sibling, the spouse shall receive first an interest in the estate of HK$1,000,000 and the remainder shall be divided into two shares, one for the spouse and one for the parent, if the parent survives him or her, or if there is no parent, the whole of the estate, or the whole of the children, and the remaining part shall be divided into two shares, one for the spouse and one for the children. If there is no surviving parent, the remaining portion shall be divided into two shares, one for the spouse and the other for his or her father or mother, both of whom shall receive the same share if they are survived by their parents, and if there is no surviving parent, then the share shall be divided equally amongst all the brothers and sisters.(4) If the deceased is survived by children and does not leave a spouse, the children shall share his estate equally.(5) If the deceased does not leave a spouse, children or parents, the following persons shall be beneficiaries, in that order of priority(i) brothers and sisters of full blood; (ii) brothers and sisters of half blood; (iii) brothers and sisters of half blood.(ii) siblings of half-blood; (iii) grandparents and grandchildren; and(iii) grandparents; and(iv) siblings of full blood (i.e. half-brothers and half-sisters) of their parents, i.e. uncles, aunts, uncles, aunts and aunts; (v) half-brothers and half-brothers of their parents, i.e. aunts, uncles, aunts and aunts; and(v) siblings of half blood (i.e. half-brothers or half-brothers) of their parents, i.e. uncles, aunts, uncles and aunts.Such a distribution of estate may cause great problems and bring a lot of inconvenience to the heirs. Example 1A family of four, the father died, leaving the mother with a son and a daughter. The estate consists of a residential unit valued at HK$12,000,000 and HK$500,000 in cash, which the father held separately and lived with the mother. After the death of the father, according to the "Intestates' Estates Ordinance", the mother can get HK$500,000 first, and the remaining residential unit with a market value of HK$12,000,000 has to be divided into two, with the mother getting HK$6,000,000, and the son and the daughter getting the remaining HK$6,000,000, i.e. HK$3,000,000 each. 000, i.e. HK$3,000,000 each. The problem arises that if the son or daughter asks to sell the flat to get his/her share of the money, the mother cannot refuse and the mother may lose her home. Example 2Many young couples in Hong Kong nowadays do not want to have children. If the husband dies and they have no children, but they have surviving parents or siblings, the total value of the husband's estate is HK$11,000,000, and the wife receives HK$1,000,000, and the rest of the HK$10,000,000 has to be divided into two parts, each of which is HK$5,000,000, and the wife receives one part, and the other part has to be given to her. The wife gets one share and the other is to be given to the deceased husband's parents, or if the parents are deceased, to the husband's siblings in equal shares, which may not be the couple's wish. Of course, if the family is characterized by filial piety and brotherly love, the situation mentioned in the above examples will not occur. Family members may be willing to transfer their benefits from the estate to a certain family member, such as the children in Example 1 may transfer their interests to their mother, the in-laws in Example 2 may transfer all the benefits from their son's estate to their daughter-in-law, or the siblings may transfer all the benefits from their brother's estate to their sister-in-law. The parties concerned need to sign a Deed of Family Arrangements. However, the signing of this Deed requires the payment of additional solicitor's fees, and if the interests to be transferred include properties, stamp duty may have to be paid, and all these troubles can in fact be avoided by the signing of a will by the deceased before his death. Some people may think that there is no problem if the deceased's spouse is allowed to hold all the deceased's estate without signing a deed of family arrangement or asserting his/her rights on the basis of mutual trust, as the family members are harmonious anyway. However, things change. If a beneficiary has financial problems and goes bankrupt, the Official Receiver may recover his/her interest in the deceased's estate on behalf of his/her creditors; or if a beneficiary is divorced, his/her divorced spouse may recover his/her interest in the deceased's estate in the Family Court as part of the distribution of the divorced couple's property. So, a will is better than no will at all!