Ask Melanie | Consider all the angles when preparing a will
Melanie Nutbeam, a certified financial planner based in Hong Kong, addresses common personal finance queries. Send your questions to melanie.nutbeam@hfs.com.hk
If you die and your wife survives you, she will own 75 per cent of the company shares and your three children will share 25 per cent equally. Likewise, if your wife dies first you will own 75 per cent of the company and your children will share 25 per cent equally.
The cash and shares will remain in the company until you or your wife decide otherwise.
The survivor will need to consider how to provide for the passing of their majority holding after death, or make changes to the shareholding while alive.
Terry Wong, a specialist at The Hong Kong Trust Company, adds: "If the husband and wife die at the same time and the wife's will mirrors the husband's, shares in the business will default to the children. If the children are minors, a guardian should be appointed to make decisions about the company's operation and assets."
If your home is jointly owned as joint tenants it falls automatically to the surviving spouse on death. On the death of that surviving spouse it will pass according to his/her valid will. If it is owned as tenants in common, the share of the deceased spouse will fall to their estate and be dealt with under the provisions of their will.