YIP, TSE & TANG, HONG KONG LAWYERS

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FAQ ON WILLS

What is a will?

A will is a legal document you use to leave property to close family members, friends, or charities. In your will, you name beneficiaries to inherit your property, an executor to wrap up your estate, and guardians to care for your young children. You can set up a trust for money inherited by children. You can also forgive debts owed to you and state how you want your debts, expenses, and taxes to be paid.

What can I do with a Will?

With a Will you can:

• Name beneficiaries (and alternate beneficiaries) to inherit your property.
• Name a guardian to care for your young children.
• Create a trust or a custodianship and choose an adult to manage your children's
• State how your debts, expenses, and taxes are to be paid.
• Name an executor to carry out the terms of your will.

How much does a Will cost?

$1000 to $3000 depending on complexity.

What information do I need to make my will?

It will be easier to make your will if you have gathered some information first:

• a rough inventory of your property (but if you plan to leave everything to one or a few people, you can skip this)
• a list of beneficiaries -- that is, the people who will get your property
• a list of alternate beneficiaries -- the people who will inherit your property if your first-choice beneficiary dies before you
• if you have young children, a list of your first and second choices for guardian
• a list of your first and second choices for executor

How long will it take to make my will?

You could make a very basic will in just a few minutes. But a will is an important document; don't rush. Put aside an hour or two to think about your wishes and make your will.

When do I pay?

When you have decided to instruct us to prepare the will and given us your instructions on its content.

What do I do with my completed will?

We shall give the completed will to you after you have signed it and witnessed by two witnesses provided by us. Store this original document in a safe place, such as a bank safety box.

Can I make copies of my completed will?

It's fine to give a copy of your will to your executor or other loved ones for informational purposes.

Do not sign more than one copy of the will. Doing so creates more than one original document and could cause confusion after your death.

What other estate planning documents might I need?

In addition to a will, you might consider making: a living trust (whose main advantage is to avoid probate court proceedings after your death) and a power of attorney (to allow a trusted person to arrange your affairs if you can't).

Is it safe to make a will without a lawyer?

Home-made wills are common in Western countries. Because a will is a very important document, a will prepared by a lawyer will be more safe. It is cheap and convenient to prepare a will in Hong Kong.

Is a simple will enough for me?

It's always fine to make a simple will. Simplicity will create the least uncertainty. But there are some situations in which you may need more than a simple will and should get expert advice or, at the least, investigate your options. For example:

• If you anticipate family fights, see a lawyer for advice on how to stave off bad feelings and legal battles.
• If you want to set up a long-term trust for a child with special needs.

Choosing a Real Estate Agent

Choosing the right real estate agent is an important decision which can dramatically impact your selling or purchasing experience. The following is a partial list of factors you should consider in selecting the right real estate broker.

Selling

Commission - in general, a broker would not charge more than 1% of the sales price.

Comparable Sales - ask the agent to provide you with a list of other properties with similar characteristics which recently sold in your area.

Familiarity with your Neighborhood - make sure you choose an agent who is very knowledgeable about your specific neighborhood.

Exclusivity of Agency - unless your property is extremely valuable and the estate agent is prepared to allocate certain advertising cost for its sale, Sole agency is undesirbale.

Advertising - Find out where and how often the property will be advertised. If you list the property in the newspaper, other publications and the real estate agent's website.

Open Houses - Find out if the real estate agent will be scheduling open houses. Although these open houses are usually not the most effective marketing tool, they can help sell your home.

Preparing Your Property for Sale - Does the realtor have good suggestions about how to make your property more appealing to potential purchasers?

Purchasing

Find a real estate agent who listens to you and understands your priorities.

Find an agent who is free when you need them.

Choose an agent who points out the negatives, as well as the positives, of each property. There are many possible problems with a flat, the property or location which may not be obvious to a potential buyer. Make sure your agent informs you of these negatives.

If you are looking in different towns, consider using more than one agent. The agent you are thrilled with in one town may not be as knowledgeable about properties in other towns.

Find an agent who keeps you informed of new listings. Once your agent understands what you are looking for in a home, he/she should contact you as soon as new listings come on the market. Make sure your real estate agent has you in mind when new listings hit the market so that you do not miss these opportunities.

What is a Power of Attorney?

In the event we can no longer care for ourselves it is important to have in place a method of ensuring that those people we trust the most have the power to look out for our best interests. 

A Power of Attorney grants those people we trust the most, the power to do this.  It is the legal step that grants important powers to ensure that the care, welfare and administration of your financial and legal affairs are managed by those you most trust. 

Preparing these documents well in advance assists you and your family to prepare for your future care.  It also may avoid conflict between loved ones as you have set a clear path for your care.

Very often, a Power of Attorney is prepared for disposing a real property. This will enable you to sell the property without your physical presence. The attorney will sign the documents such as agreement and assignment for you. You must find a lawyer to prepare a Power of Attorney and handle its execution. Buyer does not accept invalid or doubtful Power of Attorney.

Terms Frequently Used in Wills

Beneficiary: Person entitled to receive assets from a testator/testatrix's estate.

Bequest: Specific item left to someone under a Will - e.g. an item of jewelry, a painting, etc.

Estate: Term used to generally describe testator/testatrix's possessions, assets and affairs on death.

Executor: Male person appointed to handle the testator/testatrix’s affairs on death. Female person appointed is called Executix.

Legacy: Amount of money left to someone under a Will. Person left an amount of money under a Will is called Legatee.

Residue: Remainder of assets once any specific bequests, legacies, expenses, etc have been paid. More often, it is called Residuary Estate.

Testator: Male person making a Will. Female person making a Will is called Testatrix.

Trustee: Another term used for the Executor holding assets in trust for a beneficiary of the Will.