Estate Inventory (Hong Kong)

An Estate Inventory in Hong Kong sets out the information or analysis it captures for compliance or operational use.

Hong Kong's estate administration regime requires the personal representative to identify, collect, and account for all estate assets before distributing the net estate to the beneficiaries. An accurate Estate Inventory is the starting point of this process. The inventory informs court fees payable to the Probate Registry of the High Court, confirms each beneficiary's entitlement, and provides the basis for estate accounts that the personal representative presents to the beneficiaries at the close of administration.

Estate duty was abolished in Hong Kong on 11 February 2006 under the Estate Duty (Abolition) Ordinance. Estates of persons dying on or after that date are not subject to estate duty, eliminating the need for formal Revenue-directed estate valuations. However, probate court fees under the Non-Contentious Probate Rules (Cap. 10A) are still calculated on the gross value of the Hong Kong estate — Section 3 of Cap. 10A sets out the applicable fee scale — making an accurate inventory important for cost management. Current Probate Registry fees are: HK$170 for estates up to HK$500,000; HK$470 for estates up to HK$1 million; and increasing on a sliding scale for larger estates.

Assets forming part of the estate subject to the Probate and Administration Ordinance (Cap. 10) include: real property in Hong Kong held solely by the deceased or as a tenant in common; bank and investment accounts held in the deceased's sole name; listed shares held through securities accounts at licensed brokers regulated by the Securities and Futures Commission (SFC) under the Securities and Futures Ordinance (Cap. 571); unlisted shares in private Hong Kong companies registered with the Companies Registry; and personal property. Assets typically falling outside the estate include jointly held real property (passing by survivorship under the principles of common law) and Mandatory Provident Fund (MPF) benefits distributed by MPF trustees directly to nominated beneficiaries under Section 167 of the Mandatory Provident Fund Schemes Ordinance (Cap. 485).

Section 25 of the Trustee Ordinance (Cap. 29) imposes a duty on personal representatives to act with reasonable care and skill in managing estate assets. Section 29 of Cap. 29 requires trustees to keep proper accounts of the trust and make those accounts available to beneficiaries on request. A well-maintained Estate Inventory is the foundation of proper estate accounts and provides the evidential basis for the estate distribution process, whether under the terms of the will or the intestacy rules of the Intestates' Estates Ordinance (Cap. 73).

Estate Inventory in Hong Kong is needed at the outset of the estate administration process and is used throughout the administration, in the following circumstances.

Before Applying for Probate: The executor or intended administrator prepares the Estate Inventory before filing the probate application at the Probate Registry of the High Court, to identify all assets and their approximate gross value for court fee calculation and to confirm no assets are overlooked.

Identifying Assets Across Institutions: The personal representative uses the Estate Inventory as a working checklist when approaching each asset custodian — banks (HSBC, Hang Seng Bank, Bank of China (Hong Kong), Standard Chartered, and others operating under the Banking Ordinance (Cap. 155)); the Land Registry for real property title search; the Companies Registry for share searches; MPF trustees; licensed brokers and custodians regulated by the Securities and Futures Commission (SFC); and insurance companies.

Calculating Beneficiaries’ Entitlements: Whether the estate is to be distributed under the terms of the will or the intestacy rules under the Intestates’ Estates Ordinance (Cap. 73), an accurate inventory of assets and liabilities is essential for calculating each beneficiary’s share of the net estate in HKD.

IRD Tax Affairs: The Inland Revenue Department (IRD) may issue a provisional tax assessment or require information about the deceased’s assets and income during the administration period. The Estate Inventory is the key reference document for responding to IRD enquiries under the Inland Revenue Ordinance (Cap. 112).

Small Estate Procedure: For estates with total assets below HK$150,000 (or at the Probate Registry’s discretion), the simplified small estate procedure under Cap. 10 may be used to release assets without a full probate grant. In this case, the Estate Inventory is submitted to each asset holder as evidence of the personal representative’s entitlement.

Estate Dispute Resolution: Where there is a dispute between beneficiaries about the composition of the estate, or a complaint that the personal representative has misappropriated assets, a complete and accurate Estate Inventory is essential evidence for proceedings before the Court of First Instance.

Distribution Planning: Before executing the Estate Distribution Deed or Estate Distribution Agreement, the personal representative uses the finalised Estate Inventory to confirm that all assets have been collected and all liabilities settled, and to prepare the distribution schedule.

Estate Inventory in Hong Kong should include the following key elements, organised to support systematic asset collection and estate accounting under the Probate and Administration Ordinance (Cap. 10).

Deceased's Details: Full legal name; HKID number; last residential address in Hong Kong; date of birth and date of death; nationality; marital status at date of death; name of executor or administrator and their HKID number; and the Probate Registry reference number and date of grant.

Real Property: For each Hong Kong property — full address; government lot number (New Territories, Kowloon, or Hong Kong Island lot reference); tenure (government lease term and expiry); nature of ownership (sole owner or share as tenant in common); estimated market value in HKD at date of death (supported by a registered professional surveyor's report meeting MRICS or HKIS standards); outstanding mortgage balance (lender name, account number, balance); and rating and valuation reference from the Rating and Valuation Department.

Bank and Financial Accounts: For each bank account — bank name and branch; account type (current, savings, fixed deposit, or time deposit); account number; balance in HKD (or foreign currency converted to HKD) at date of death; and documentary evidence (bank statement as at date of death obtained from each bank operating under the Banking Ordinance (Cap. 155)).

Securities: Listed shares on the Hong Kong Stock Exchange (HKEX) — stock code, company name, number of shares, closing price on date of death, total value in HKD; unlisted shares in private Hong Kong companies registered with the Companies Registry — Companies Registry registration number, company name, class and number of shares, estimated value based on professional valuation.

MPF and Pension Benefits: MPF trustee name, scheme name, account balance at date of death; whether MPF benefits form part of the estate or are paid directly to nominated beneficiaries by the MPF trustee under Section 167 of Cap. 485; and occupational pension scheme details if applicable.

Life Insurance: Policy number; insurer name; sum assured; named beneficiary (whether the estate or a named individual — policies with named beneficiaries other than the estate pass directly outside the estate).

Personal Property: Valuables — jewellery, watches, art, antiques (with professional valuation); motor vehicles (make, model, Vehicle Registration Mark, estimated market value from Transport Department records); other significant personal property.

Liabilities: Mortgage balances; bank loans and overdrafts; credit card balances; income tax liabilities (IRD reference number and amount estimated from final return under Section 51 of Cap. 112); rates and government rent arrears payable to the Rating and Valuation Department; business debts if the deceased carried on a sole proprietorship registered under the Business Registration Ordinance (Cap. 310); funeral expenses; administration expenses including legal fees and Probate Registry court fees.

Net Estate Value: Gross assets minus total liabilities, calculated in HKD — used for court fee computation under Cap. 10A and for beneficiary entitlement calculations.

Governing Law: Laws of Hong Kong SAR. Forms-legal.com provides the Estate Distribution Deed and Executor Appointment Letter for Hong Kong, the complementary documents needed to complete the estate administration process after the Estate Inventory has been prepared.