Will Execution Hand Book
Congratulations on making the wise decision to write your Will.
While a written Will facilitates the distribution of your assets to your loved ones, there may be delays in executing the Will due to insufficient information or lack of documentary support required for transferring some assets.
This handbook is designed to guide you in executing a Will. Understanding the involved steps is crucial to ensure that your wishes are fulfilled after your death.
The Will Execution Handbook assists you in preparing all the necessary documents in advance and also guides your family members on the actions they should take during execution.
Documents Required
Please make a photocopy of the documents listed below and keep them in a safe place. Write down the location of these documents in your Asset Update booklet or inform your Executor of their whereabouts.
1) Marriage Certificate, if any
2) Your Identity Card/Passport
3) Your children’s/beneficiaries’ Identity cards/Birth Certificates
4) Vehicle Registration Document (Card)
5) Mandatory Provident Fund Scheme – MPF Statement
6) Insurance Policies
7) Issue Document of Title to Real Estate Property/Land
8) Company Registration Certificate
9) Monthly statement of stock account or original stock certificates
10) Credit Cards Statements
11) Bank Accounts Statements and/or Bank Passbook
12) Income Tax Statement
13) Unit Trust Certificate or Statement
14) The key of the safe deposit box and its location/company
15) Any other investments certificates
16) Any other documents relating to any additional assets
To help facilitate the transfer of the various types of assets, we provide you with helpful information as listed below.
- BANK ACCOUNTS
- SAFE DEPOSIT BOX
- MANDATORY PROVIDENT FUND (MPF)
- INSURANCE POLICIES
- BUSINESS
- INVESTMENTS
- VEHICLES
- IMMOVABLE PROPERTIES
- INCOME TAX
BANK ACCOUNTS
This includes:
a) The deceased’s passbook
b) Any statements of accounts
The Executor can apply to the relevant bank for confirmation of account details, which is crucial for assessing the value of assets before distribution. They must provide the bank with certified copies of the following documents:
a) The deceased’s Will
b) The deceased’s HKID card/passport
c) The death certificate issued by the Registry of Births and Deaths
SAFE DEPOSIT BOX
The Probate and Administration Ordinance (Hong Kong Chapter 10) Sections 60C to 60I stipulate: The Director of Civil Affairs, upon receiving an application, may issue a “Certificate for Inspection of Safe Deposit Box” and an “Authorization to Remove Items from Safe Deposit Box,” allowing the applicant to inspect the safe deposit box and remove specified items from it.
CENTRAL PROVIDENT FUND (CPF)
If MPF nominees were nominated
Executors should apply to the trustee of the Mandatory Provident Fund (MPF) scheme to disburse MPF funds to the designated nominees (beneficiaries). For this, they must present the original documents for verification to the MPF scheme provider:
- The death certificate issued by the Registry of Births and Deaths;
- Marriage certificate (if the spouse is the nominee);
- Birth certificates of children (if children are the nominees)
For children under 18 years old, if they are designated as beneficiaries, the MPF scheme provider typically withholds their share until they reach the legal age of majority (18 years old), unless special arrangements are made. In Hong Kong, the distribution of MPF funds usually follows the list of beneficiaries designated by the deceased.
If MPF nominees were not nominated
If no beneficiaries are designated, MPF funds will be distributed according to Hong Kong’s statutory inheritance rules.
It should be noted that MPF scheme providers may have their specific regulations and procedures. Executors should follow these when applying for MPF funds. If the beneficiaries designated in the will and those nominated in the MPF are different, generally, the MPF funds will be distributed according to the instructions in the MPF nomination form. When dealing with MPF-related matters, it is advisable to consult a professional legal advisor or the MPF scheme provider.
INSURANCE POLICIES
If beneficiaries were nominated
The nominated beneficiaries have the right to claim any relevant insurance payouts in the deceased’s name. To facilitate this, the Executor must submit a verified copy of the deceased’s death certificate to the insurance company for claim processing. If the beneficiaries explicitly named in the insurance policy and those mentioned in the Will differ, the insurance payout will be made according to the designations in the insurance policy.
If beneficiaries were not nominated
When beneficiaries were not nominated by the deceased in his Insurance policy, the persons named in the Will shall benefit from the claim.
BUSINESS
Sole Proprietorship
Ownership of a sole proprietorship typically ceases upon the owner’s death. All commercial assets owned by the sole proprietorship will be distributed to beneficiaries according to the will’s directives after the owner’s demise. In the absence of a will, distribution will proceed according to Hong Kong’s statutory inheritance rules.
Partnership
If the deceased was a partner in a business, the executor must handle relevant matters in accordance with any existing partnership agreement and the Will. This includes dealing with the deceased’s share in the partnership business and distributing any related assets as directed by the partnership agreement or the will.
If there is no partnership agreement in place, or if the agreement does not specify how to handle the death of a partner, the executor should proceed according to the relevant provisions of the Hong Kong Partnership Ordinance (Cap. 38). This may involve dissolving the partnership business or distributing the deceased’s share of the partnership in accordance with the will or the statutory inheritance rules.
The executor should ensure that all actions comply with Hong Kong law and accurately reflect the deceased’s wishes. When dealing with partnership business matters, especially where the partnership agreement is unclear or non-existent, it is advisable to consult a professional legal advisor.
Private Limited Company
The executor is responsible for notifying the company secretary of a Private Limited Company about the shareholder’s death and must submit a verified copy of the death certificate and a copy of the Grant of Probate. Once the documents are submitted, the company secretary will initiate the relevant processes and procedures of the company to handle the transfer of the deceased’s shares to the beneficiaries or legal heirs specified in the will.
If there is a shareholders’ agreement among the shareholders, all processes of share transfer must strictly adhere to the terms specified in that agreement, including any specific restrictions or conditions on the transfer of shares. After the transfer of shares is completed, the company must update its register of shareholders to reflect the information of the new shareholders.
Note – When dealing with the death of a shareholder in a Private Limited Company, it may be necessary to follow the relevant provisions of company law and the company’s articles of association. It is advisable to consult a professional legal advisor when handling such matters to ensure that all actions comply with Hong Kong legal requirements and properly reflect the deceased’s wishes.
INVESTMENTS
Various investments held in the name of the testator (deceased), including shares, unit trusts, stocks, and bonds, are to be transferred to the designated beneficiaries according to the instructions in the will. Executors must provide the relevant financial institutions with a certified Grant of Probate. Additionally, they are required to complete the appropriate transfer forms to formally transfer asset ownership to the specified individuals.
If the deceased owned shares in a listed company, Executors need to undertake the share transfer procedures to directly transfer the shares to the beneficiaries, or in some cases, such as when shares are not divisible, initially transfer them to the Executor (or a designated Executor) and then distribute the corresponding shares from the account to the beneficiaries. It is noteworthy that transfers of this nature in Hong Kong may incur administrative fees and tax implications.
Note – Managing investment-related affairs might necessitate compliance with specific legal stipulations and financial institution protocols. When handling these affairs, consulting with professional legal and financial advisors is recommended to ensure adherence to Hong Kong’s legal standards and the deceased’s intentions are accurately represented.
VEHICLES
Vehicles, including all transport vehicles such as cars, trucks, and motorcycles registered in the name of the testator (deceased), are covered. Executors are required to obtain detailed information and registration documents of the vehicles owned by the deceased. Simultaneously, executors must notify the Transport Department of Hong Kong and process the vehicles according to the instructions in the will, which may include selling the vehicles or transferring ownership to designated beneficiaries.
For this purpose, executors need to submit the relevant transfer documents, including a verified copy of the deceased’s death certificate and the Grant of Probate, to complete the procedures for transferring vehicle ownership. In some cases, it may be necessary to pay related taxes or administrative fees.
Note – When handling vehicle-related matters, executors should follow the regulations and procedures of the Transport Department of Hong Kong. When dealing with such matters, it is advisable to consult a professional legal advisor or the relevant department to ensure that all actions comply with Hong Kong legal requirements and properly reflect the deceased’s wishes.
IMMOVABLE PROPERTIES
Immovable properties include houses, apartments, condominiums, land, shop lots, etc., either solely or jointly owned.
Property with title
If the testator (deceased) held property ownership in Hong Kong, executors are required to submit the original Grant of Probate (registered through the verification process). If there is an outstanding bank mortgage on the property, executors need to negotiate with the bank to arrange the property inheritance based on the mortgage agreement and the remaining loan balance. Executors should hire a lawyer to manage the property transfer as directed by the will, including directly transferring the property to the beneficiaries or first selling the property and then distributing the proceeds to the beneficiaries.
To complete the property transfer, a new title registration must be conducted at The Hong Kong Land Registry to ensure the property records accurately update to reflect the new owner’s information.
Property without title
For properties under the testator’s (deceased’s) name without title deeds, executors also need to submit the deceased’s death certificate and relevant transfer documents.
Executors must follow the instructions in the will to handle such properties. Before transferring the property to the beneficiaries, any outstanding mortgages or other debts must be settled using funds from the deceased’s estate. This may involve negotiations with banks or other creditors to resolve any unsettled debts.
Note – When handling real estate matters, one should follow the legal provisions and procedures of Hong Kong. In dealing with such matters, it is advisable to consult a professional legal advisor to ensure that all actions comply with Hong Kong legal requirements and properly reflect the deceased’s wishes.
INCOME TAX
To ascertain the amount of unpaid income tax of the testator (deceased), the executor needs to submit a notification letter of the deceased’s passing to the Hong Kong Inland Revenue Department (IRD) along with a verified copy of the death certificate. The IRD will then provide the executor with detailed information about any unpaid income tax of the deceased. Subsequently, the executor must complete the relevant forms and settle any outstanding tax liabilities of the deceased. Once all dues are properly addressed, the deceased’s income tax account will be closed.
Executors must ensure compliance with the relevant provisions of Hong Kong tax law. When handling the deceased’s estate and settling tax liabilities, it is advisable to consult a professional tax advisor or legal consultant to ensure all actions comply with Hong Kong legal requirements and accurately reflect the deceased’s wishes.
BANK ACCOUNTS
This includes:
a) The deceased’s passbook
b) Any statements of accounts
The Executor can apply to the relevant bank for confirmation of account details, which is crucial for assessing the value of assets before distribution. They must provide the bank with certified copies of the following documents:
a) The deceased’s Will
b) The deceased’s HKID card/passport
c) The death certificate issued by the Registry of Births and Deaths
SAFE DEPOSIT BOX
The Probate and Administration Ordinance (Hong Kong Chapter 10) Sections 60C to 60I stipulate: The Director of Civil Affairs, upon receiving an application, may issue a “Certificate for Inspection of Safe Deposit Box” and an “Authorization to Remove Items from Safe Deposit Box,” allowing the applicant to inspect the safe deposit box and remove specified items from it.
MANDATORY PROVIDENT FUND (MPF)
If MPF nominees were nominated
Executors should apply to the trustee of the Mandatory Provident Fund (MPF) scheme to disburse MPF funds to the designated nominees (beneficiaries). For this, they must present the original documents for verification to the MPF scheme provider:
- The death certificate issued by the Registry of Births and Deaths;;
- Marriage certificate (if the spouse is the nominee);
- Birth certificates of children (if children are the nominees)
For children under 18 years old, if they are designated as beneficiaries, the MPF scheme provider typically withholds their share until they reach the legal age of majority (18 years old), unless special arrangements are made. In Hong Kong, the distribution of MPF funds usually follows the list of beneficiaries designated by the deceased.
If MPF nominees were not nominated
If no beneficiaries are designated, MPF funds will be distributed according to Hong Kong’s statutory inheritance rules.
It should be noted that MPF scheme providers may have their specific regulations and procedures. Executors should follow these when applying for MPF funds. If the beneficiaries designated in the will and those nominated in the MPF are different, generally, the MPF funds will be distributed according to the instructions in the MPF nomination form. When dealing with MPF-related matters, it is advisable to consult a professional legal advisor or the MPF scheme provider.
INSURANCE POLICIES
If beneficiaries were nominated
The nominated beneficiaries have the right to claim any relevant insurance payouts in the deceased’s name. To facilitate this, the Executor must submit a verified copy of the deceased’s death certificate to the insurance company for claim processing. If the beneficiaries explicitly named in the insurance policy and those mentioned in the Will differ, the insurance payout will be made according to the designations in the insurance policy.
If beneficiaries were not nominated
When beneficiaries were not nominated by the deceased in his Insurance policy, the persons named in the Will shall benefit from the claim.
BUSINESS
Sole Proprietorship
Ownership of a sole proprietorship typically ceases upon the owner’s death. All commercial assets owned by the sole proprietorship will be distributed to beneficiaries according to the will’s directives after the owner’s demise. In the absence of a will, distribution will proceed according to Hong Kong’s statutory inheritance rules.
Partnership
If the deceased was a partner in a business, the executor must handle relevant matters in accordance with any existing partnership agreement and the Will. This includes dealing with the deceased’s share in the partnership business and distributing any related assets as directed by the partnership agreement or the will.
If there is no partnership agreement in place, or if the agreement does not specify how to handle the death of a partner, the executor should proceed according to the relevant provisions of the Hong Kong Partnership Ordinance (Cap. 38). This may involve dissolving the partnership business or distributing the deceased’s share of the partnership in accordance with the will or the statutory inheritance rules.
The executor should ensure that all actions comply with Hong Kong law and accurately reflect the deceased’s wishes. When dealing with partnership business matters, especially where the partnership agreement is unclear or non-existent, it is advisable to consult a professional legal advisor.
Private Limited Company
The executor is responsible for notifying the company secretary of a Private Limited Company about the shareholder’s death and must submit a verified copy of the death certificate and a copy of the Grant of Probate. Once the documents are submitted, the company secretary will initiate the relevant processes and procedures of the company to handle the transfer of the deceased’s shares to the beneficiaries or legal heirs specified in the will.
If there is a shareholders’ agreement among the shareholders, all processes of share transfer must strictly adhere to the terms specified in that agreement, including any specific restrictions or conditions on the transfer of shares. After the transfer of shares is completed, the company must update its register of shareholders to reflect the information of the new shareholders.
Note – When dealing with the death of a shareholder in a Private Limited Company, it may be necessary to follow the relevant provisions of company law and the company’s articles of association. It is advisable to consult a professional legal advisor when handling such matters to ensure that all actions comply with Hong Kong legal requirements and properly reflect the deceased’s wishes.
INVESTMENTS
Various investments held in the name of the testator (deceased), including shares, unit trusts, stocks, and bonds, are to be transferred to the designated beneficiaries according to the instructions in the will. Executors must provide the relevant financial institutions with a certified Grant of Probate. Additionally, they are required to complete the appropriate transfer forms to formally transfer asset ownership to the specified individuals.
If the deceased owned shares in a listed company, Executors need to undertake the share transfer procedures to directly transfer the shares to the beneficiaries, or in some cases, such as when shares are not divisible, initially transfer them to the Executor (or a designated Executor) and then distribute the corresponding shares from the account to the beneficiaries. It is noteworthy that transfers of this nature in Hong Kong may incur administrative fees and tax implications.
Note – Managing investment-related affairs might necessitate compliance with specific legal stipulations and financial institution protocols. When handling these affairs, consulting with professional legal and financial advisors is recommended to ensure adherence to Hong Kong’s legal standards and the deceased’s intentions are accurately represented.
VEHICLES
Vehicles, including all transport vehicles such as cars, trucks, and motorcycles registered in the name of the testator (deceased), are covered. Executors are required to obtain detailed information and registration documents of the vehicles owned by the deceased. Simultaneously, executors must notify the Transport Department of Hong Kong and process the vehicles according to the instructions in the will, which may include selling the vehicles or transferring ownership to designated beneficiaries.
For this purpose, executors need to submit the relevant transfer documents, including a verified copy of the deceased’s death certificate and the Grant of Probate, to complete the procedures for transferring vehicle ownership. In some cases, it may be necessary to pay related taxes or administrative fees.
Note – When handling vehicle-related matters, executors should follow the regulations and procedures of the Transport Department of Hong Kong. When dealing with such matters, it is advisable to consult a professional legal advisor or the relevant department to ensure that all actions comply with Hong Kong legal requirements and properly reflect the deceased’s wishes.
IMMOVABLE PROPERTIES
Immovable properties include houses, apartments, condominiums, land, shop lots, etc., either solely or jointly owned.
Property with title
If the testator (deceased) held property ownership in Hong Kong, executors are required to submit the original Grant of Probate (registered through the verification process). If there is an outstanding bank mortgage on the property, executors need to negotiate with the bank to arrange the property inheritance based on the mortgage agreement and the remaining loan balance. Executors should hire a lawyer to manage the property transfer as directed by the will, including directly transferring the property to the beneficiaries or first selling the property and then distributing the proceeds to the beneficiaries.
To complete the property transfer, a new title registration must be conducted at the Hong Kong Land Registry to ensure the property records accurately update to reflect the new owner’s information.
Property without title
For properties under the testator’s (deceased’s) name without title deeds, executors also need to submit the deceased’s death certificate and relevant transfer documents.
Executors must follow the instructions in the will to handle such properties. Before transferring the property to the beneficiaries, any outstanding mortgages or other debts must be settled using funds from the deceased’s estate. This may involve negotiations with banks or other creditors to resolve any unsettled debts.
Note – When handling real estate matters, one should follow the legal provisions and procedures of Hong Kong. In dealing with such matters, it is advisable to consult a professional legal advisor to ensure that all actions comply with Hong Kong legal requirements and properly reflect the deceased’s wishes.
INCOME TAX
To ascertain the amount of unpaid income tax of the testator (deceased), the executor needs to submit a notification letter of the deceased’s passing to the Hong Kong Inland Revenue Department (IRD) along with a verified copy of the death certificate. The IRD will then provide the executor with detailed information about any unpaid income tax of the deceased. Subsequently, the executor must complete the relevant forms and settle any outstanding tax liabilities of the deceased. Once all dues are properly addressed, the deceased’s income tax account will be closed.
Executors must ensure compliance with the relevant provisions of Hong Kong tax law. When handling the deceased’s estate and settling tax liabilities, it is advisable to consult a professional tax advisor or legal consultant to ensure all actions comply with Hong Kong legal requirements and accurately reflect the deceased’s wishes.
IMPORTANT:
If any beneficiaries have yet to attain 18 years of age or the age set out in the Will, all the benefits they are entitled to shall be held in trust by the Trustee until they attain the said age.
