Most people in Hong Kong don’t think about estate planning until something goes wrong. A family member gets sick. A business partner dies unexpectedly. A parent develops dementia and nobody has authority over their bank accounts.
By that point, the options are limited, expensive, and slow.
Whether you are a business owner, a company director, someone responsible for your family’s finances, or simply a person with assets worth protecting, there are three legal documents you should have in place: a will, an enduring power of attorney (EPA), and an advance medical directive. Together, these three documents form the foundation of a responsible estate plan in Hong Kong.
This article explains what each one does, why it matters, and how they work together to protect you, your family, and your business.
Why Estate Planning Matters — Especially in Hong Kong
Hong Kong has no estate duty or inheritance tax. That is often cited as a reason not to worry about estate planning. But the absence of estate duty does not mean the absence of problems.
If you die without a will, your estate is distributed according to a rigid statutory formula under the Intestates’ Estates Ordinance (Cap. 73) — not according to your wishes. If you become mentally incapacitated without an EPA, your family will need to apply to the High Court just to access your bank accounts. That process can take months and cost tens of thousands of dollars.
And if you have strong views about your own medical treatment in a critical situation, without an advance directive those wishes may not be followed.
Estate planning is not about tax. It is about control, clarity, and avoiding unnecessary hardship for the people you care about.
Document 1: Your Will
A will is a legal document that sets out how you want your assets to be distributed after your death. It also allows you to appoint executors to administer your estate, name guardians for minor children, and make specific bequests.
What happens without a will?
If you die intestate (without a valid will) in Hong Kong, your estate is distributed under the Intestates’ Estates Ordinance. The formula depends on your family structure. For example, if you are survived by a spouse and children, your spouse receives all personal chattels, HK$500,000, and half of the remaining estate. Your children share the other half.
That may or may not be what you would have chosen. The law does not account for blended families, unmarried partners, specific gifts, or any arrangements you may have wanted to make for business succession.
Why it matters for business owners and directors
If you hold shares in a private business and you die without a will or shareholders agreement, those shares may become part of your estate and must go through the probate process. That means nobody can deal with those shares — exercise the associated rights, transfer them, or sell them — until a Letters of Administration is obtained. For a business, this can cause serious disturbance.
A will allows you to specify exactly who should inherit your shares, how the business should be handled, and who should act as executor to manage the transition.
Key requirements for a valid will in Hong Kong
- You must be at least 18 years old and of sound mind.
- The will must be in writing.
- It must be signed by you in the presence of two independent witnesses.
- The witnesses must also sign in your presence. Neither witness can be a beneficiary of the will.
Document 2: Enduring Power of Attorney (EPA)
An enduring power of attorney is a legal instrument governed by the Enduring Powers of Attorney Ordinance (Cap. 501). It allows you, while you are still mentally capable, to appoint one or more attorneys to manage your financial affairs in the event that you later become mentally incapacitated.
The key difference between an EPA and a general power of attorney is that a general power of attorney stops working the moment you lose mental capacity. An EPA “endures” — it continues to be effective even after you become incapacitated. That is precisely the point.
What happens without an EPA?
If you lose mental capacity and do not have an EPA in place, your family cannot simply walk into the bank and manage your finances on your behalf. They will need to apply to the High Court under the Mental Health Ordinance (Cap. 136) to be appointed as a “committee of the estate.” This court process could be expensive, time-consuming, and stressful.
During the period between your incapacity and the court appointment, your bills may go unpaid, your business may be unable to operate properly, and your family may be unable to access funds for basic needs.
How to make an EPA in Hong Kong
An EPA must be made using the prescribed form set out in the Enduring Powers of Attorney (Prescribed Form) Regulation (Cap. 501A). It must be signed before both a registered medical practitioner and a solicitor practising in Hong Kong. Neither the doctor nor the solicitor can be your intended attorney.
The EPA must then be registered with the High Court when you lose (or begin to lose) mental capacity, before the attorney can exercise their powers.
Why EPAs are underused in Hong Kong
Despite their importance, EPAs remain surprisingly rare in Hong Kong. Between 2018 and 2022, only around 4,012 EPAs were registered.
The low adoption rate suggests a significant awareness gap — one that could leave thousands of families facing expensive and avoidable court processes.
Document 3: Advance Medical Directive
An advance medical directive (AMD) allows you to set out in advance your wishes regarding medical treatment, specifically whether you want to refuse life-sustaining treatment under certain circumstances. This might include mechanical ventilation, cardiopulmonary resuscitation (CPR), or artificial nutrition and hydration.
The new law: Advance Decision on Life-Sustaining Treatment Ordinance
Hong Kong’s Legislative Council passed the Advance Decision on Life-Sustaining Treatment Ordinance in November 2024. This is a significant development. Previously, the legal enforceability of advance directives in Hong Kong was considered a grey area. Medical practitioners were not always confident they could follow a patient’s directive, particularly in emergency situations.
The new Ordinance changes that. It provides a clear legal framework, giving legal protection to both patients and healthcare professionals who follow a valid advance directive. The Ordinance is expected to commence in mid-2026.
What does an advance directive cover?
Under the new framework, you can make a legally binding decision to refuse life-sustaining treatment if you are terminally ill, in a persistent vegetative state, or in an irreversible coma. The directive must be made voluntarily and while you are mentally competent.
How is this different from an EPA?
An EPA covers your financial affairs. An advance directive covers your medical treatment. They address different situations, but both are relevant to anyone who wants to maintain control over what happens to them if they can no longer make decisions for themselves.
Think of it this way: an EPA protects your money and your business. An advance directive protects your body and your dignity.
How the Three Documents Work Together
Each of these documents addresses a different risk:
- Will: What happens to your assets and your family after you die.
- EPA: Who manages your finances if you become mentally incapacitated during your lifetime.
- Advance Directive: What medical treatment you want (or do not want) if you cannot communicate your wishes.
Without a will, the law decides who gets what. Without an EPA, the court decides who handles your money. Without an advance directive, doctors make their best judgment about your care. In each case, someone else makes the decision for you.
For business owners, company directors, and anyone responsible for significant family finances, having all three documents is not excessive. It is the minimum responsible preparation.
A Practical Estate Planning Checklist for Hong Kong
Use this as a starting point. Tick off what you already have and identify the gaps:
- Valid will: Does it reflect your current wishes? Has it been updated since your last major life event (marriage, divorce, new child, new business)?
- Enduring power of attorney: Have you appointed an attorney? Does your EPA cover all relevant financial matters?
- Advance medical directive: Have you documented your wishes regarding life-sustaining treatment? (The formal framework takes effect mid-2026, but you can start thinking about this now.)
- Executor and attorney choices: Are the people you have named still appropriate and willing to act? Do they know the whereabouts of your assets?
- Business succession plan: If you hold shares in a private business, have you addressed what happens to those shares if you die or become incapacitated?
- Cross-border considerations: If you have assets in other jurisdictions, do you need separate wills or legal arrangements for those assets?
- Document storage: Do your family members and/or your solicitor know where your original documents are kept?
Frequently Asked Questions
Do I need all three documents?
Ideally, yes. Each one covers a different scenario. A will deals with what happens after death. An EPA deals with financial incapacity during your lifetime. An advance directive deals with medical decisions. Together, they provide comprehensive coverage.
How much does estate planning cost in Hong Kong?
Costs vary depending on complexity. A straightforward will prepared by a solicitor might cost from a few thousand dollars. An EPA requires the engagement of both a medical practitioner and solicitor, plus a registration fee of HK$440. The investment is modest compared to the cost and disruption of not having these documents in place.
I’m young and healthy. Do I really need this?
Accidents and sudden illness do not discriminate by age. If you own a business, have dependents, or are responsible for family finances, these documents are relevant regardless of your age.
Can I prepare these documents myself?
A will can technically be handwritten, but mistakes in wording or execution can invalidate it or create disputes. An EPA must by law involve a solicitor and a registered medical practitioner. For something this important, professional advice is strongly recommended.
Speak to a TITUS Lawyer
If you need help with a will, enduring power of attorney, advance directive, or any aspect of estate planning in Hong Kong, our team can help.
Contact TITUS Solicitors at info@titus.com.hk or call +852 3702 0045.
Disclaimer: This article is published by TITUS Solicitors for general informational purposes only. It does not constitute legal advice and should not be relied upon as such. The information provided may not reflect the most current legal developments. For advice specific to your situation, please consult a qualified solicitor. If you would like to discuss any matter raised in this article, please contact TITUS Solicitors.