Probate - Six Simple Steps in Handling and Distributing the Estate of a Deceased Person
death intestate

Probate - Six Simple Steps in Handling and Distributing the Estate of a Deceased Person

When a person dies, he/she may leave behind some assets, such as bank deposits, cars, stocks and shares, properties and so on. Anyone who wishes to deal with the estate of a deceased person must first go to the Probate Office of the High Court of Hong Kong to obtain a Grant of Probate in accordance with the legal procedures. A Grant of Probate is a court document issued by the Probate Office which authorizes the Executor or Administrator of the estate to receive all the assets of the estate, to discharge the debts of the deceased and to distribute the estate to the beneficiaries of the estate. The power of an Executor is derived from the deceased's Will, so his/her powers and duties begin at the moment of the testator's death. The Administrator's powers are derived from the Letters of Administration, so his/her powers and duties should start from the date of the Letters of Administration, not from the moment of the deceased's death.The procedure for handling an estate is as follows.Step 1: Collect the deceased's belongings and liabilities to prepare an InventoryFirst, the Executor or Administrator will go through all the personal belongings and liabilities of the deceased, e.g. belongings kept in the home or safe deposit box, bank deposits, credit card debts, etc., and prepare an inventory of the deceased's belongings, which will be included in the Estate's Inventory of Assets and Liabilities to be filed with the Probate Office.Step 2: Search for the deceased's WillIt is important to ascertain whether the deceased had made a Will as this will have a direct bearing on the application process for the grant of Letters of Administration and who can inherit the estate. Possible ways to do this include checking all the deceased's personal documents, making enquiries with the deceased's relatives, friends, financial and legal advisors, and checking the deceased's bank safe deposit box. In addition, if a solicitor has been engaged to apply for a grant of representation, the solicitor can be asked to conduct a will search through the Law Society of Hong Kong to see if the deceased had made a will in Hong Kong through another solicitor.Step 3: Determine who will file the Petition in CourtIf the deceased had made a Will, it is the Executor of the Will who should file a Petition for Probate and apply for a Grant of Probate. However, if the deceased did not make a will, according to Rule 21 of the Undisputed Probate Rules (Chapter 10A of the Laws of Hong Kong), the order of priority of applicants is as follows: (a) spouse, (b) children of the deceased, (c) father or mother of the deceased, and (d) brothers or sisters of the deceased. Generally speaking, it is the person with the higher priority who should file the petition and apply for a grant of probate. However, if the person with the higher priority has died or wishes to waive his or her right to obtain a grant of probate, the person with the lower priority has the right to file a petition and apply for a grant of probate, provided that it can be proved that the person with the higher priority has died or waived his or her right to obtain a grant of probate. Letters of Entitlement may not be granted to more than four persons, and must be granted to no fewer than two persons if the estate involves minor beneficiaries or persons with life interests.Step 4: Negotiate the need to hire an attorney to handle the settlement.This will depend on the size of the estate and its complexity, for example.✅ If the estate consists entirely of money and does not exceed $50,000, the applicant may submit an application form and an affidavit to the Home Affairs Department. The affidavit must state that the total value of the deceased's estate does not exceed $50,000 and that it is entirely in cash, and must be accompanied by an inventory in duplicate setting out the particulars of the estate. HAD can then issue a Notice of Recognition of Estate in lieu of applying to the Probate Office for a Grant of Probate. In this case, the applicant or any other third party dealing with the estate will be given immunity from the provisions of the law on unauthorized handling of the estate.The Director of Home Affairs also has the power to(a) to issue a Certificate of Requirement to authorize the making of payments from the bank account of the deceased, e.g. to pay for the funeral expenses of the deceased and the living expenses of the dependants of the deceased;(b) Issue of "Certificate of Need to Inspect Bank Safe Deposit Box";(c) Issue of "Authorization for Removal from Bank Deposit Box".✅ If the estate (cash, bank deposits and MPF only) does not exceed $150,000, it can be dealt with by the Official Administrator in a summary manner without the need to engage a solicitor. If the funeral and burial expenses of the deceased have been paid by you in advance, you may apply to the Official Administrator for a refund of the funeral and burial expenses paid by you.✅ If the amount of the estate exceeds $150,000 but the composition of the estate is simple and uncomplicated, you may consider applying to the Public Applications Unit of the Probate Office to take over the estate of the deceased. If the Registrar considers it appropriate, assistance will be provided. ✅ In other cases, consideration may be given to engaging a solicitor. There is no standardized fee for an attorney to handle an estate, so you can negotiate with an attorney you know well.Step 5: Formal Application for Probate in CourtThe applicant has to submit documents to the Probate Office in support of his/her application to prove his/her entitlement to a Grant of Probate, e.g. death certificate of the deceased, original and copy of the deceased's Will (if applicable), documents showing the relationship between the deceased and the applicant, e.g. marriage certificate, birth certificates of the children, etc. The applicant has to sign an Execution of the Will, which will be signed by the applicant and the applicant will be entitled to a grant of probate. The applicant is required to sign an affidavit of the executor or administrator. The applicant is also required to prepare and sign an affidavit verifying a list of assets and liabilities and a list of the deceased's assets and liabilities in Hong Kong at the date of death. The applicant is required to answer questions raised by the Official of the Probate Office to the satisfaction of the Official.If, after the applicant has submitted all documents to the Probate Office (and the Grant of Probate has not yet been issued), it is found that the deceased had other assets. In this case, the applicant may submit a further Affidavit verifying the list of additional assets and liabilities. However, if the Probate has been duly issued, the applicant may bring along the Affidavit and the Affidavit of Verification of Additional List of Assets and Liabilities to the Probate Office to apply for amendments.Step 6: Distribution of EstateAfter obtaining a Grant of Probate, the Executor or Administrator will need to pay the deceased's debts (e.g. credit card debts), taxes (e.g. salaries tax, profits tax), funeral expenses, and other expenses (e.g. attorney's fees and court costs for the settlement of the Grant of Probate) out of the deceased's estate. The deceased's estate can then be distributed to the beneficiaries of the estate. If there is a will, the estate will be distributed according to the wishes of the testator. If there is no will, the estate will be distributed to the beneficiaries in accordance with the law of intestate succession. Details of the order of priority are set out in the Intestates' Estates Ordinance, Cap. 73, section 4 of the Laws of Hong Kong.
Mainland & Hong Kong Inheritance of Family Estates - Which Laws Prevail?
death intestate

Mainland & Hong Kong Inheritance of Family Estates - Which Laws Prevail?

I am a Hong Kong resident, should I apply the laws of the Mainland or Hong Kong to inherit my family's estate in the Mainland?What is the difference and what are the potential risks? What do I need to know about cross-border inheritance? Cross-border Inheritance in the Mainland and Hong KongMore and more people residing or purchasing properties in the Mainland often encounter cross-border inheritance issues, and there are two common scenarios.>After a Mainland resident passes away, he/she has left funds or stocks in a bank in Hong Kong, or he/she has real estate in Hong Kong, and these assets in Hong Kong need to be processed in Hong Kong for inheritance;>If a Hong Kong resident passes away and leaves real estate or capital in a bank in the Mainland, his assets in the Mainland need to be inherited in the Mainland.Application of Law: Who has the right of successionThe laws of Hong Kong and the Mainland are the same in determining the right of succession, i.e. the law of the place where the immovable property is situated applies to immovable property (e.g. real property), while the law of the place where the decedent's domicile is situated applies to movable property. In other words, if a Mainlander has left an estate in Hong Kong, the law of Hong Kong applies to the domicile of the heir to determine who has the right of succession to the estate in Hong Kong.For cash and stocks in Hong Kong bank accounts, the law of the place of residence of the heir, i.e. the Mainland, will determine who has the right of succession.If a Hong Kong resident has left an estate in the Mainland, the law of the Mainland will determine who has the right of succession in respect of the real estate in the Mainland, whereas the law of the place of residence of the decedent, i.e. the law of Hong Kong, will determine who has the right of succession in respect of the cash in bank accounts in the Mainland.   -Immovable property belongs to the place; movable property belongs to the person.Q: What is the determination of "domicile" in the Civil Law?A: Article 15 of the General Principles of Civil Law stipulates that: A citizen's domicile shall be the place of residence of his domicile, and if the place of habitual residence does not coincide with the domicile, the place of habitual residence shall be deemed to be the domicile.According to the laws of Mainland China, the order of succession in Hong Kong and Mainland China is that the estate of the decedent shall be divided equally among the surviving first-order successors (spouse, parents and children), and if none of the first-order successors is alive, the surviving second-order successors (siblings, grandparents and grandparents) shall succeed to the decedent's estate.Legal Order of Succession in the MainlandAccording to Hong Kong law, if the decedent has a spouse or children, the parents have no right of succession; if there is both a spouse and children, the spouse receives a fixed amount (HK$500,000) and half of the remainder, and the other half of the remainder goes to the children in joint succession and is divided equally.The biggest difference between Hong Kong and Mainland China is that the first order of successors under Mainland China's inheritance law includes parents, whereas Hong Kong's inheritance law is generally more favorable to spouses and not so favorable to parents. Inheritance Jurisdiction. Hong Kong Estates of Mainland ResidentsFor estates left in Hong Kong by Mainland residents, application should be made to the High Court of Hong Kong for probate (in the case of testamentary succession) or for an administration order (in the case of legal succession or where there is a will but the will does not appoint an executor).If the estate is immovable property such as real estate, the administrator will be determined in accordance with the laws of Hong Kong. If the estate is movable property such as bank deposits or stocks, the High Court of Hong Kong will determine the successor in accordance with the provisions of the laws of the Mainland and grant the right of administration of the estate to the person who has the right of inheritance. Such notarized documents need to be authenticated by the foreign affairs department authorized by the Ministry of Foreign Affairs of the PRC. After obtaining the High Court's authorization of probate, the administrator may, by virtue of the Court's order, contact various institutions such as banks to handle the procedures for distribution of the estate to the successors.Mainland Estates of Hong Kong ResidentsFor immovable properties such as houses, Mainland laws are applicable. The decedent can go directly to the notary public department in the Mainland to apply for a notarization of inheritance, and needs to submit relevant data (proof of identity of the decedent, proof of relationship with the decedent, etc., which need to be notarized by a judicial notary public in Hong Kong and Taiwan) to prove that the decedent has the right of inheritance, and the notary public department of the Mainland will issue a certificate of inheritance upon receipt of the relevant data and confirmation of the decedent's right of inheritance. With the Certificate of Succession Rights, the legatee shall apply to the relevant authorities for the transfer of real estate (statutory succession and testamentary succession are exempted from Deed Tax, but bequests are not exempted from Deed Tax). In respect of estates of movable properties such as bank deposits left in the Mainland by residents of Hong Kong camping in the Mainland, Hong Kong law shall apply to determine the successor. You should apply to a Hong Kong notary public appointed by the Ministry of Justice for a notarization of declaration of succession rights (renunciation of succession rights), and then apply to a notary public in the Mainland for a notarization of succession rights, and then apply to a bank or other institution for the transfer of the estate to the heir with the notarization of succession rights. As the notary publics in the Mainland are not familiar with the procedures of applying Hong Kong laws, this process may be more complicated.It is important to discuss the actual situation, the practical procedures and the relevant tax issues (Hong Kong status).It is important to seek professional assistance.
Without a will, how will the inheritance be inherited? (Case analysis)
death intestate

Without a will, how will the inheritance be inherited? (Case analysis)

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!
Do you know the procedure of inheritance in Hong Kong?
death intestate

Do you know the procedure of inheritance in Hong Kong?

Overview of Inheritance Procedures in Hong KongThe procedure for inheritance in Hong Kong varies depending on whether the deceased died with a valid Will and an Executor appointed. Generally speaking, the main procedures of inheritance in Hong Kong are: firstly, the person entitled to administer the estate of the deceased should apply to the Probate Office of the High Court of Hong Kong for the appointment of an administrator (or executor) by the court, and then the administrator (or executor) will distribute the estate to other beneficiaries entitled to inherit (successors) or administer the estate in other ways according to the lawDetermine who has the right to bring an action in court to be an administrator (executor).Before filing an application in court, it is important to determine who has the right to apply to be an administrator (executor) of a deceased person's estate. Generally speaking, if the deceased left a valid Will and the Will has named an Executor, the Executor named in the Will is the person who has the right to apply to the Court to administer the estate as an Executor. On the other hand, if the deceased did not leave a Will, or if he did leave a Will but did not validly appoint an Executor in the Will, the order of precedence should be determined according to the law as to who has the priority to apply for the right to be the Administrator. The order of priority for applying to be an administrator of a deceased person's estate under the laws of Hong Kong.Procedures for applying to be an AdministratorWhere the deceased did not leave a Will or where the Will does not validly appoint an Executor, a person who is entitled to priority under the law may apply to the Court for the appointment of an Administrator of the deceased's estate. The application should be made to the Probate Division of the High Court of Hong Kong.The documents that are normally required to be filed to make an application to be granted Letters of Administration include. an affidavit of application to become an Administrator, which varies according to the status of the applicant (e.g. being the spouse or a child or a parent of the deceased); If the deceased was domiciled outside Hong Kong, this needs to be supported by a separate ex parte application affidavit stating that the applicant is the person who has the power to administer the estate of the deceased under the law of the place of domicile of the deceased. Evidentiary documents in support of the above application include the death certificate of the deceased, the applicant's identity document, documents proving the kinship between the deceased and the applicant (e.g. birth certificates, marriage certificates, etc.), and documents proving that the person who had the right of priority before him/her has died or waived his/her right of priority. If the deceased was domiciled in a place other than Hong Kong, a legal affidavit from a solicitor of the place of domicile of the deceased certifying that the applicant is the person entitled to administer the estate of the deceased under the law of that place is also required.Upon receipt of the application documents, the Court will normally give its first reply within 1-2 months - the Court's reply is usually in the form of an interrogatory - the Court's interrogatory is a letter from the Court asking the applicant to make corrections to the application, to submit supplementary documents, or to amend the relevant documents. The applicant is required to make corrections, additions and supplementary submissions in response to the Court's questions until the Court is satisfied and a grant of Letters of Administration will be issued.If the applicant is a person outside Hong Kong, the Court will require the applicant to provide a guarantee that he/she will not administer the estate to the detriment of other persons (e.g. other heirs) after his/her appointment as Administrator.Legal Procedures for Applying to be an ExecutorIf the deceased has left a Will in which an Executor has been validly appointed, the Executor named in the Will should apply to the court for probate of the Will in order to be appointed by the court as an Executor.A petition for probate filed with the court requires the following documents. an original copy of the will. an affidavit of filing for probate, thereby making yourself an executor of the will.. If the will was not witnessed by a solicitor practicing in Hong Kong, it is usually necessary to submit an affidavit from the witness of the will stating the circumstances under which the will was made. identification document of the applicant.If the validity of the will is to be determined by foreign law, e.g. if the testator is not domiciled in Hong Kong and the will was not made in Hong Kong, the Court may require the applicant to submit a legal affidavit from a foreign lawyer certifying that the will is legally valid under the applicable foreign law.Procedures for administering the estate of a deceased personAfter obtaining a grant of letters of administration from the Court, the administrator (or executor) of the deceased's estate can use the grant of letters of administration to collect the estate from banks, securities companies, etc., to effect transfers, and to distribute the estate to other beneficiaries who are entitled to succeed to the deceased's estate - a process which normally does not require the involvement of the Court - and if any of the inheritors believes that his/her right of succession has been infringed by the administrator of the deceased's estate, he/she may bring an action in the Court. If any heir believes that his or her inheritance rights have been infringed by the administrator, he or she can bring a court action.