We often think that Wills are for the rich and the old, but here are reasons why you should make one when you have young children.
While contemplating a future in which you are not present is difficult, a Will allows you to make two important decisions for your children, who are under the age of 18 years, in the unfortunate event of your passing:-
1. Appoint a Guardian: Choosing the Right Hands for Their Future
Under sections 6(1) and (4) of the Guardianship of Minors Ordinance (Cap.13), you may appoint any person to be a guardian of your children in your Will and that person may act jointly with the surviving parent or surviving guardian of the children after you pass away. This ensures that the person you trust the most will care for your children, which can avoid uncertainty or conflict at a critical time. You may also appoint a substitute guardian in your Will in case the appointed guardian predeceases you or is unable to act as guardian.
If both parents pass away without a legal appointment of guardianship in place, the decision will fall to the Court. While the Court prioritises the children’s welfare and will make prudent decisions, this process may be lengthy and costly.
2. Make Financial Provisions: Protecting Their Financial Future
It may be a common misconception that minor beneficiaries can receive inheritance directly after a parent’s passing. In Hong Kong, minors do not have the capacity to do so and the executor of the estate must hold the minors’ shares in trust (i.e. on their behalf) until they reach majority.
In that case, it is useful to have a Will to set out how you would like your minor children’s inheritance to be held and managed, including:-
(a) Appoint trusted individuals or a professional trustee as executors of your estate to administer and distribute your assets.
(b) Determine when your children shall receive the funds, e.g. at the age of 21, 25 or even 30, as sometimes 18 may not be the right age to inherit a substantial sum.
(c) Direct funds to be used for a specific purpose and provide for special needs, e.g. education, healthcare, or general maintenance of your children.
These arrangements protect against imprudent spending and preserve your legacy for your children’s benefit.
Creating a Will is about planning wisely and lovingly. It is the ultimate safety net, ensuring your children are cared for by the people you trust and supported by the resources you leave behind.
Contact us today to schedule a consultation and turn your love into a lasting plan.
Disclaimer: This article is for information purposes only and does not constitute any legal advice. You are encouraged to seek professional legal advice before taking any action.
