Standard clauses in the Hong Kong Will
2 min read
There are two sections in the Will which are standard provisions. We will explain in more detail here why those clauses are included.
Administration of my Estate
This gives the executors/trustees power to postpone sale of your assets if required, and to pay off any debt, inheritance taxes or expenses, such as your mortgage or lawyer fees for probate from your estate. It defines what “residuary estate” is to make sure that all your assets are covered in the Will to avoid intestacy laws applying to any of your assets.
Your executors / trustees (“trustees”) are regulated by the respective trust laws in the country where the Will is being submitted for probate. They are restricted within the provisions of those laws and may not have the full flexibility to manage your estate when certain situations arise.
It is therefore common to add some standard clauses to give your trustees the freedom to manage your estate in certain situations. The following are descriptions of what those clauses mean in our online Wills.
(a) & (b) The trust laws give your trustees the power to make relatively conservative investments only. To enable them to have more flexibility to invest, it is usual to extend their powers and include specific power such as buying property for the beneficiaries to live in.
(c) Your trustees may be required to consider other funds before using your estate for the maintenance and benefit of the beneficiaries, we have added a clause so they will be not restricted on their use of your estate to take care of them.
(d) Instead of restricting the trustees to advance only one half of what the beneficiary’s presumptive share is on your estate, it is usual to give the trustees the flexibility to advance any amount.
(e) As your trustees have power to insure your assets against any risks, we have added to allow the premium to be paid out of the income and capital of your residuary estate.
(f) Your trustees can now appropriate any assets for the satisfaction of the beneficiary’s share without the need to obtain their consent. Obtaining their consent may lead to delays and possibly disputes between the beneficiaries.
(g) The rule of apportionment involves complex calculations on how the estate is to be administered. We have added a clause to avoid this calculation and to make things easier for your trustees to deal with your estate.
(h) Your trustees can exercise their powers as trustees even though they may be personally interested in your estate as the beneficiary.
(i) Your trustees can use the income and capital of your estate to maintain and improve any of your assets.
(j) Your trustees can have the right to deal with any of your digital assets, so they can retain any information online which may be of value to your family.
Others - If you have given away any charity gifts, then a clause would be added to ensure that there is a proper discharge of receipt. If there is any hiccups with the gift i.e. the charity no longer exists, then your trustees can still give the gift away to a related charity.
If you would like to have some clauses removed, then you can contact us directly.
Please note that our online Wills are standard for all clients, we will not be amending individual wordings in any of our clauses unless they are due to mistakes
- clauses in a Will
- Hong Kong Wills