What Is the Difference Between a Will and a 'Ping On Paper'?
“Ping On Paper” is in fact a colloquial term for a will. Legally, there is no substantive difference between the two. Whether the document is titled “Will” or “Ping On Paper”, it can still be a legally valid will as long as it meets the requirements under Hong Kong’s Wills Ordinance (Cap. 30) on writing, signing and witnessing. Put simply, “will” is the formal legal term, while “Ping On Paper” is the more common colloquial expression used in Hong Kong.
Will
A will is a legal document used to appoint executors and beneficiaries, and to set out how a person’s estate is to be dealt with after death. It takes effect immediately upon the death of the testator, and the executor must administer and distribute the testator’s estate to the beneficiaries in accordance with the terms of the will.
'Ping On Paper'
“Ping On Paper” is simply a colloquial term used for a will. However, the name of the document itself does not determine its legal effect. The key question is whether it satisfies the execution requirements set out in section 5 of Hong Kong’s Wills Ordinance (Cap. 30). If it does, it may be treated in law as a valid will; if it does not, it cannot be dealt with as a will.
How Do You Make a Will Valid? An Overview of the Requirements
In Hong Kong, the validity of a will is mainly governed by the Wills Ordinance. Generally, a will must be made in writing and signed by the testator. The signing must also take place in the simultaneous presence of two witnesses, and the witnesses must sign the will as witnesses. Under the Wills Ordinance (Cap. 30), the following requirements should be observed to ensure that a will is legally valid:
Will Requirement |
Specific Requirement |
|
|
- The will must be handwritten, printed or made in some other written form;
- It must bear the testator’s signature, or be signed on the testator’s behalf by another person in the testator’s presence and at the testator’s direction;
- The testator must intend the signature to give effect to the will;
- The testator must sign the will, or acknowledge the signature, in the simultaneous presence of at least two witnesses; and
- Each witness must attest and sign the will, or acknowledge his or her signature, in the presence of the testator (but not necessarily in the presence of the other witness).
|
|
|
- A testator may write a will personally and begin it with words such as “This is the Last Will and Testament of [name of testator]”; or
- The testator may instruct a solicitor to prepare the will.
|
|
|
- The testator must be aged 18 or above, have sufficient mental capacity, and make the will of his or her own free will, without coercion or deception; and
- If the testator has a mental illness or a serious medical condition and is receiving medication, he or she will need to show that, at the time of signing, he or she consciously understood and agreed to the contents of the will.
|
These requirements are intended to ensure that a will is genuine and to reduce the risk of forgery or coercion. If a will does not comply with the statutory formalities, it may later be regarded as invalid, in which case the estate may have to be distributed in accordance with the relevant statutory rules rather than in a way that protects the people you actually wish to provide for.
Why Make a Will?
The benefits of making a will include:
- Distribute your estate according to your own wishes: A will allows you to set out clearly how your assets are to be distributed, instead of leaving them to be dealt with only under the intestacy rules. For example, you may specify that a particular property is to be left to your spouse, while part of your savings is to be set aside for your children’s education fund.
- Reduce disputes among family members: You can state clearly in your will how your estate is to be divided and why, helping to reduce conflict caused by disputes over inheritance. For example, if you intend to make greater provision for one family member, you can explain the arrangement clearly in the will to reduce future arguments.
- Appoint an executor: You may appoint a suitable person, such as a trusted relative, friend or legal professional, to deal with the probate application, settle debts and distribute the estate.
- Appoint a guardian for minor children: If you have minor children, a will can express who you wish to care for them and provide clear guidance for your family. For example, you may specify that a sibling or trusted relative or friend is to act as guardian, and set out how your children’s living and education expenses are to be met.
- Simplify estate administration: If you leave a will, your executor can deal with your estate in accordance with your arrangements. If you die without making a will, an applicant for letters of administration will need to provide all relevant documents and evidence when making the application.
What Should You Prepare Before Making a Will?
The following information is usually prepared before making a will:
1. Details of the Testator
Your full name, Hong Kong identity card number and residential address.
2. Overview of Your Assets
A list of your assets, including but not limited to properties, bank deposits, investments, business interests and insurance policies, so that your intended distribution arrangements can be clearly set out.
3. Your Intended Distribution of Assets
You should state clearly who is to receive specific assets. If any beneficiary is a minor, you should also consider how the assets are to be held on their behalf and when they should be transferred.
4. Details of the Beneficiaries
Each beneficiary’s full name, Hong Kong identity card number, relationship to you and residential address.
5. Details of the Executor
The executor’s full name, Hong Kong identity card number and residential address.
6. Details of the Guardian, If Applicable
If you have minor children, you should specify the guardian who is to care for them, including the guardian’s full name, Hong Kong identity card number, contact details and residential address.
7. Witnesses / Solicitor
Two witnesses must sign and provide their Hong Kong identity card numbers when making the will. If your asset structure is complex, it is advisable to instruct a solicitor to draft the will.
Key Points to Note When Making a Will
1. Amending or Revoking a Will
If your marital status, family structure or asset position changes, you may update your will by making a new will or by adding a document of amendment in accordance with the legal requirements. To avoid disputes caused by multiple versions, it is advisable to revoke the earlier will clearly in the new document and deal with the previous version properly.
2. Making a Will for Overseas Assets
Many Hong Kong people own properties or investments in Mainland China or overseas. You should consider the legal requirements in the relevant jurisdiction and decide whether to make a separate overseas will or deal with those assets in the same will. To avoid conflicts between documents in different jurisdictions, it is advisable to seek legal advice first and ensure that the scope and revocation clauses of each will are clearly drafted.
3. Storing the Will
The original will should be kept in a safe place that is also accessible to the executor, and the storage location should be made known to a trusted person. If the will is lost or the original cannot be found, this may delay the probate process and make it more difficult for family members to deal with the paperwork.
4. Restrictions on Who May Act as a Witness
To ensure that the will is legally valid, a witness and the witness’s spouse must not be beneficiaries under the will. If a witness is given a benefit under the will, that gift will be treated as invalid. For this reason, when choosing witnesses, priority should be given to independent third parties or professionals who have no conflict of interest in the estate.
5. Medical Evidence
If the testator is elderly or is suffering from a serious illness, it is advisable to ask a doctor to be present as a witness when the will is signed, or to provide evidence of the testator’s mental condition on that day. This can help show that the testator had a clear mind and acted of his or her own free will at the time of signing, reducing the risk of a later legal challenge by relatives who are dissatisfied with the distribution arrangements.
What Should You Consider Before Making a Will?
Domicile of the Testator
The testator’s domicile may affect how the estate is dealt with. In particular, movable assets such as shares and bank deposits are generally governed by the law of the testator’s domicile at the time of death, whereas immovable property such as land and real estate is generally governed by the law of the place where the asset is situated.
If you own overseas property, overseas bank accounts or investment accounts, a Hong Kong will alone may not be sufficient to deal with all of your assets.
Common Disaster Clause for Married Couples
When a married couple makes wills, they may consider including a common disaster clause to state how the estate is to be distributed if both die in the same incident, or if it cannot be established who died first.
Survivorship Clause
A survivorship clause requires a beneficiary to remain alive for a specified period after the testator’s death before becoming entitled to inherit. For example, the will may provide that a beneficiary must survive the testator by 30 days or 60 days before receiving the inheritance. If the beneficiary dies within that period, the relevant assets may instead pass to an alternative beneficiary.
Funeral Arrangements
A will may also include funeral wishes, such as whether you prefer burial or cremation, a religious ceremony or a simple service, and whether you wish your ashes to be scattered at sea or placed in a columbarium niche.
How Personal Belongings Should Be Dealt With
When making a will, you should not deal only with property, bank deposits and investments. You should also consider how personal belongings are to be distributed, such as jewellery, watches, collections, works of art, vehicles, family heirlooms or items of sentimental value. If the will does not specify how personal belongings are to be dealt with, they may be treated as part of the residuary estate or even sold and added to the estate’s cash balance.
Charitable Gifts
In addition to leaving your estate to family members or friends, you may specify in your will that part of your cash, shares, property or residuary estate is to be donated to a charity. If you wish to make a charitable gift, it is advisable to state clearly the charity’s full legal name, registration details or address, together with the amount, proportion or specific asset to be donated, so as to avoid execution problems caused by unclear or inaccurate information.
The Age at Which a Beneficiary May Inherit
If a beneficiary is still a minor, the executor will usually need to hold and manage that beneficiary’s inheritance on trust until the beneficiary reaches the age specified for inheritance.
Some parents may not wish their children to receive a substantial sum all at once immediately upon reaching adulthood. They may therefore consider staged inheritance arrangements, for example allowing part of the funds to be used for education, living or medical expenses, with the remaining balance distributed only when the child reaches a specified age.
Beneficiaries Who Lack Capacity
If a beneficiary is a person with a disability, an intellectual disability, or another person who may not be able to manage property independently, special thought should be given when making the will to trust arrangements and the appointment of a guardian or trustee.
Deciding on Beneficiaries and Their Shares
A will should state clearly who the beneficiaries are and what assets or proportions each beneficiary is to receive. Beneficiaries may include:
- Spouse
- Children
- Parents
- Siblings
- Other relatives or friends
- Charitable organisations
Appointing a Suitable Executor
The executor is responsible, after your death, for obtaining the grant of representation, collecting in the assets, settling debts and distributing the estate in accordance with the will. When choosing an executor, you should consider whether the person is trustworthy and able to communicate fairly with the beneficiaries. You may also appoint more than one executor, or appoint a substitute executor, in case the person originally chosen is unable to perform the role.
Keeping the Original Will Safely
Once a will has been made, it should be kept safely, and the executor or a trusted family member should be told where it is stored.The original will may be kept in a safe place such as a solicitor’s office or a bank safe deposit box.
How Much Does It Cost to Make a Will?
In general, the legal fee for preparing a simple will is usually in the range of a few thousand dollars. Where the will involves multiple properties, complex asset distribution, overseas assets, trust arrangements or special provisions, the cost of a tailor-made will may range from several thousand to tens of thousands of dollars. The fee information above is a general market estimate for reference only. Actual fees may vary depending on the complexity of the assets, the way beneficiaries are provided for, the types of assets involved and the arrangements made by the solicitor.
What Are the Three Essential Legacy Planning Documents?
The “three essential legacy planning documents”, also known colloquially as the “three peace-of-mind documents”, are a will (“Ping On Paper”), an enduring power of attorney (EPA) and an advance directive (AD). They deal respectively with the distribution of your estate after death, the management of your financial affairs if you lose mental capacity during your lifetime, and medical decisions when you are unable to express your wishes.
How Will the Estate Be Distributed If No Will Is Made?
If you do not make a valid will during your lifetime, your estate will have to be dealt with under the intestacy rules.
If there is no will, who can apply for Letters of Administration?
Under rule 21 of Hong Kong’s Non-Contentious Probate Rules (Cap. 10A), there is a clear statutory order of priority among the persons who may apply for letters of administration:
- The surviving spouse, including one or more surviving partners in a lawful polygamous union entered into before 7 October 1971;
- Your children, including children of the above union and the descendants of any deceased child;
- Your father or mother;
- Your brothers and sisters, or the descendants of any deceased brother or sister.
Up to four administrators may be appointed. If two or more persons of the same priority are eligible at the same time and a dispute arises, the persons concerned may apply to the High Court, which will decide and make the appointment according to the circumstances of the case.
It should be noted that the order of priority for applying for letters of administration is not exactly the same as the final shares in which the estate will be distributed. The actual distribution must still be determined in accordance with Hong Kong’s intestacy laws.
Prudential Life Insurance Plans Can Help You Build a Well-Rounded Legacy Plan
A will must go through the probate process before it can be administered. Family members or the executor must first obtain the court’s authority before the estate can formally be dealt with, collected in and distributed. From the application stage until the assets are released, the process may take several months or even longer. For family members who depend financially on the testator, this waiting period may create short-term cash flow pressure.
This is exactly where life insurance can complement a will. If beneficiaries have already been designated under the policy, the death benefit can generally be paid more directly to them, providing emergency funds before probate is completed and helping them meet living expenses, mortgage payments, children’s education costs or other immediate financial needs.
Prudential’s life insurance plans eg. LiveFree Protector Insurance Plan II, while the life assured is still alive, the policyholder may choose in advance, according to family needs and financial planning goals, how the Death Benefit is paid to the beneficiary — for example, as a lump sum, by monthly instalments or as a mix of both — by paying a specified percentage of the Death Benefit as a lump sum and the remaining balance in monthly instalments. This can provide financial support for the family, help meet unexpected expenses and provide a stable cash flow over time to ease financial pressure.
Illustrative Example of a Prudential Life Insurance Plan*
Mr Chan, aged 38, is married and has a one-year-old daughter. When taking out his life insurance plan, he chose the “lump sum + monthly instalments” death benefit settlement option, under which 25% of the total death benefit is paid first as a lump sum and the balance is paid monthly over 20 years.
Assuming Mr Chan’s death benefit is US$1,000,000, the beneficiary, namely his daughter, may first receive a lump-sum payment of US$250,000 for emergency use. The remaining balance would then be paid by monthly instalments over 20 years, amounting to US$3,125 per month. The remaining balance of the benefit would be left with the company to accrue interest, and the accumulated interest would be paid together with the final instalment. This arrangement is intended to mirror the monthly household support that Mr Chan provided during his lifetime, helping to ensure that his daughter continues to have stable financial protection while growing up and until she reaches adulthood.
