Letter of Wishes (Hong Kong)

A Letter of Wishes in Hong Kong states formally the matter at hand and what the writer asks the recipient to do.

Hong Kong's Wills Ordinance (Cap. 30) requires a will to meet strict formal requirements under Section 5: the document must be in writing, signed by the testator, and witnessed by two persons present simultaneously. A will that becomes a public document upon grant of probate by the Court of First Instance or the District Court's Probate Registry. A Letter of Wishes, by contrast, is entirely private — it is not submitted to the Probate Registry, does not appear in any public record, and can express wishes that the testator might not wish to commit to a public document.

The Trustee Ordinance (Cap. 29) governs the duties of trustees appointed under a will or trust deed. Section 4 of Cap. 29 requires trustees to act as prudent investors. When trustees exercise discretionary powers — for example, whether to distribute capital to a particular beneficiary, whether to sell or retain a particular asset, or how to balance the competing interests of income and capital beneficiaries — a Letter of Wishes provides the settlor's guidance. Hong Kong courts have confirmed in multiple probate and trust cases that trustees must take a letter of wishes into account as a relevant factor in their deliberations, even though they are not legally bound to follow it.

Hong Kong abolished estate duty in 2006, removing a major tax-driven reason for complex testamentary planning in some jurisdictions. However, the Inland Revenue Ordinance (Cap. 112) has implications for assets settled into trust during the settlor's lifetime (potential Profits Tax and Property Tax issues), and the Stamp Duty Ordinance (Cap. 117) applies to transfers of Hong Kong real property. A Letter of Wishes can express preferences about timing and sequencing of asset disposals that minimise these exposures without creating legally binding obligations that might generate tax issues.

For families with assets in multiple jurisdictions — Hong Kong residential property recorded at the Land Registry, Mainland China investments, overseas bank accounts and investment portfolios — a Letter of Wishes can address the practical coordination between advisers in different jurisdictions, providing context that a formal will's operative provisions cannot easily accommodate. Forms-legal.com provides a free Hong Kong Letter of Wishes template for use alongside a will or discretionary trust.

Section 3 of the Trustee Ordinance (Cap. 29) grants trustees in Hong Kong broad statutory powers of investment and management, exercisable in accordance with the prudent investor standard in Section 4. Section 57 of Cap. 29 empowers the court to approve arrangements varying or revoking trust provisions — a Letter of Wishes can provide important context to the court when considering whether a proposed variation is in the interests of beneficiaries.

A Letter of Wishes in Hong Kong is needed whenever a testator or trust settlor has created a will or discretionary trust that confers discretionary powers on trustees or executors — and wants to guide those discretions without legally binding the decision-makers.

Parents who have established a testamentary trust for minor children under their will — drafted with the guidance of a Hong Kong solicitor qualified in probate and trust law — benefit from a Letter of Wishes that explains educational preferences (international school vs. local school system, which universities to support), lifestyle considerations (whether the children should continue living in Hong Kong or be supported in moving abroad for university), and values around money management (whether children should be encouraged to work before receiving trust distributions).

Settlors of discretionary trusts — including family trusts held through professional trust companies in Hong Kong regulated under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615) — routinely provide letters of wishes to their trustees at the time the trust is established and update them regularly as circumstances change. Corporate trustees such as licensed trust companies in Hong Kong are required by their professional duty and regulatory standards to take letters of wishes into account when exercising trustee discretions.

Testators with blended families or complex family situations — for example, a testator with children from a first marriage and a surviving spouse from a second — use a Letter of Wishes to explain the intended balance between providing for the surviving spouse and preserving assets for the children. Expressing this context privately, outside the public probate record, protects family privacy while confirming executors understand the intended approach.

Testators who own significant personal property — collections of art, jewellery, antiques, or sentimental family items — use a Letter of Wishes to indicate which beneficiary should receive specific items, particularly where those items are not individually described in the will's specific bequests. Executors can follow this guidance when distributing personal effects.

Persons nearing the end of life, or who are facing a serious medical diagnosis, should prepare or update a Letter of Wishes alongside reviewing their will. The letter can address funeral and burial preferences — burial at one of Hong Kong's cemeteries (such as the Hong Kong Cemetery in Happy Valley or the Chinese Permanent Cemetery), cremation at one of the public or private crematoria, or repatriation of remains — without requiring these preferences to appear in the formal will.

The Letter of Wishes should be reviewed and updated after every significant life event: marriage, divorce, birth of a child or grandchild, death of a named executor or trustee, a significant change in assets, or a change in the testator's relationship with any beneficiary.

A Letter of Wishes in Hong Kong accompanying a will or trust should include the following elements to effectively guide executors and trustees while preserving the document's non-binding character.

Opening Statement: A clear statement that the document is a personal Letter of Wishes — not a legally binding document — written by the testator or settlor to guide the exercise of discretions by their executors and trustees. The statement should confirm that executors and trustees are not legally bound by its contents but are requested to consider it in good faith.

Date and Identity: The date of writing, the full name and HKID number of the testator or settlor, and identification of the will or trust deed to which the letter relates — including the date of the will or trust deed and the names of the executors or trustees appointed under it.

Asset Distribution Guidance: Non-binding wishes regarding the distribution of specific assets, personal effects, sentimental items, or family heirlooms — items that may be too numerous or subject to value change to include as specific bequests in the will itself. For Hong Kong real property, wishes about whether a property should be sold or retained, and if retained, how it should be managed, can guide trustees holding property under the Trustee Ordinance (Cap. 29).

Children and Dependants: Guidance on the care, education, and financial support of minor children — preferred schools (local schools following the Hong Kong curriculum, English Schools Foundation schools, or international schools), university preferences, and the age at which children should be encouraged to work and become financially independent. Reference to the Guardianship of Minors Ordinance (Cap. 13) is appropriate where the letter addresses guardianship wishes.

Trust Distribution Guidance: For discretionary trusts, guidance on the balance between income and capital distributions; which beneficiaries should be prioritised in what circumstances; the settlor's views on distributions for education, housing, business start-up, or other specific purposes; and whether the trustee should take an active or conservative approach to trust investments.

Funeral and Burial Wishes: Preferences regarding funeral arrangements, burial or cremation, the location of burial or disposal of ashes, religious or cultural observances, and whether a memorial service should be held. In Hong Kong, burial spaces in public and private cemeteries managed under the Public Health and Municipal Services Ordinance (Cap. 132) are limited, and expressing cremation preferences may be practically important.

Personal Messages: Any personal messages to specific beneficiaries, family members, or friends — expressions of love, values, or ethical guidance — that the testator wishes to communicate but does not wish to include in the formal will.

Update Instruction: A note that the letter supersedes any previous letter of wishes bearing an earlier date, and that executors and trustees should act on the most recently dated version. Signed and dated by the testator or settlor, with copies provided to the executor, trustee, and personal solicitor.

Forms-legal.com provides a free Hong Kong Letter of Wishes template for use alongside discretionary trusts under the Trustee Ordinance (Cap. 29).

Section 6 of the Wills Ordinance (Cap. 30) provides that a will is revocable at any time before the testator's death. A Letter of Wishes, which is not a will, is similarly capable of being updated at any time without formality. Section 3 of the Limitation Ordinance (Cap. 347) sets the general limitation period for civil claims — trustees who act in reliance on an outdated Letter of Wishes in good faith are generally protected from personal liability under Section 62 of Cap. 29 (the trustee's statutory protection where acting in good faith).