While many still value long term commitments, they may no longer consider marriage as key to a happy and fulfilled relationship. If you are in a committed relationship but not considering marriage, this article explains how you and your unmarried partner can benefit from estate planning.
Legal Position in Hong Kong
In Hong Kong, common-law marriage is not recognised. Therefore, you and your unmarried partner do not enjoy the same legal status and benefits as married ones, no matter how long you two cohabited.
According to the Intestate Estate Ordinance (Cap. 73), your unmarried partner cannot share your estate if you die intestate. Your unmarried partner may apply for financial provision from your estate under the Inheritance (Provision for Family and Dependants) Ordinance (Cap. 481) if he/she can prove that you had maintained him/her, either wholly or substantially, immediately before your death.
As such, it is important to have a Will which clearly sets out how you wish to administer your estate and make financial provision for your unmarried partner. Otherwise, it may be costly and timely for your unmarried partner to seek relief from your estate. In high conflict situations, your unmarried partner may even get into a long-drawn-out Court battle with your family members who manage your estate.
Estate Planning: A Lifelong, Holistic Approach
Although having a Will is vital, it only takes effect upon death and offers no protection during your lifetime. Without any spousal rights, your unmarried partner has no power to make financial or medical decisions for you in the event of medical emergencies or if you become mentally incapacitated. In the circumstances, there are few ways which you can plan ahead:-
(a) Trust Arrangement –Settle your assets into a trust to avoid probate and provide continuity during incapacity and after death.
(b) Enduring Power of Attorney – Authorise trusted individual(s) to manage your financial matters in your best interests when you become mentally incapacitated. However, please note that your appointed attorney(s) can only manage your assets in Hong Kong.
(c) Advance Medical Directive – Indicate your instructions on life-sustaining treatment (“LST”) in advance. Healthcare professionals may adhere to your wishes regarding withholding or withdrawal of pertinent LSTs, provided that certain preconditions are met.
Securing Your Shared Future
In summary, unmarried couples without any estate plan can leave significant vulnerabilities. Creating a comprehensive estate plan is one of the most meaningful ways to protect your partner and honour your intentions, no matter what the future holds.
Contact us today to schedule a consultation and begin securing your future together.
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.