9/3/16& Survey administered jointly by Faculty of Law, The University of Hong Kong and the Concern Group of Guardianship System and Financial Affairs Ascertaining the need for Special Needs Trusts in Hong Kong Moderator: Ms Anna Lee Speakers: Professor Lusina Ho / Associate Prof Rebecca Lee 9 March 2016 Background of this Questionnaire Survey As&the&parents&/& Make& caretakers&of& Wish&for&a& arrangements& person(s)&with& decent,&happy& for&the& Resources& intellectual& dependents& and&healthy&life& ImplicaCons& � disability&age,& for&their& while&the& need&to&plan&for& parents&are& dependents � the&dependents’& sCll&capable& � future � 1&
9/3/16& Background of this Questionnaire Survey – Resources Implications Manpower � Financial:+Assets � 1.&Family&members&or&relaCves& 1.&Sufficient&assets&to&generate& J&Available,&trustworthy&&&willing?& income&for&the&dependents. � J&Too&much&responsibility&on&them?& 2.&Assets&to&be&transferred&an& J&Who&to&take&over&if&they&become&unavailable? � affordable,&competent&and&durable& 2.&By&NGO/Government && manager&at&a&suitable&Cme. � J&No&proper&arrangement&at&present& 3.+IdenEfying+/+establishing+an+ J&Limited&to&basic&subsistence,&no&quality&of&life � asset+manager+that+is:++ 3.+Devising+a+mechanism+to+look+a7er+the+well+ >+Long>lasEng,+Subject+to+legal+ being+of+individuals+with+intellectual+disability:+ supervision+and+Affordable � >+Elements:+Monitoring,+Managing+and+Caring+ Part A: Background Information QUESTIONS 1-6 2&
9/3/16& Part B: Existing financial and personal welfare planning tools for people with intellectual disability QUESTIONS 7-16 Part B: Existing Tools � Inheritance without a will & � & Personal+ 50%+of+residual+ ChaLels � estate+ � First+HK $500,000+ 50%+of+residual+ estate+ 3&
9/3/16& Part B: Existing Tools � Inheritance without a will • + Surviving+ spouse+ will+ inherit+ all+ personal+ chaLels+ (such+ as+ personal+effects,+household+items,+cars+and+jewellery)+and+the+ first+HK$500,000+of+the+residual+estate � • � Whatever+ sEll+ remains+ will+ be+ divided+ into+ two+ halves+ between:+ (1)+ the+ surviving+ spouse+ and+ (2)+ the+ deceased’s+ children,+who+will+share+this+half+equally+amongst+themselves. � • � If+ the+ deceased+ did+ not+ have+ a+ surviving+ spouse,+ his/her+ assets+will+be+shared+by+his/her+children+equally+ Part B: Existing Tools � Inheritance under a will & � & Distribute+the+ deceased’s+ assets+ according+to+ his/her+wishes+ 4&
9/3/16& Part B: Existing Tools � Inheritance under a will • +Need+to+appoint+an+executor+when+making+a+will+ • +At+least+two+ways+of+gi7ing+under+a+will: � • Giving+ your+ assets+ directly+ to+ anyone,+ including+ your+ children+ with+ intellectual+disability.+However,+if+they+do+not+have+the+capacity+to+manage+ the+ assets,+ a+ guardian+ will+ need+ to+ be+ appointed+ to+ manage+ it+ on+ their+ behalf � • You+may+also+set+up+a+trust+by+will.+The+executor+of+the+will+may+also+act+as+ trustee+ to+ hold+ the+ trust+ assets,+ and+ manage+ it+ for+ the+ benefit+ of+ your+ dependent+with+intellectual+disability � Part B: Existing Tools � Guardianship • � Parents+are+the+guardians+of+their+dependent+children+only+unEl+the+laLer+ reach+the+age+of+18 � • � When+their+dependent+with+intellectual+disability+reaches+18,+parents+may+ need+to+apply+to+the+Guardianship+Board+to+appoint+themselves+as+a+guardian.+ However,+ the+ Guardianship+ Board+ will+ only+ consider+ applicaEons+ if+ such+ a+ need+arises � • � If+ a+ guardian+ is+ appointed,+ he/she+ can+ make+ decisions+ on+ where+ the+ dependent+lives+and+what+medical+treatment+the+dependent+receives.+He/she+ also+ has+ power+ to+ handle+ money+ for+ the+ dependent,+ subject+ to+ the+ limit+ of+ $15,000+per+month+(as+at+1+March+2016) � 5&
9/3/16& Part B: Existing Tools � Guardianship • � Limits: � • In+the+absence+of+a+proven+need,+not+possible+for+you+to+appoint+ a+guardian+as+soon+as+your+dependent+child+turns+18+ • The+ amount+ of+ money+ that+ a+ guardian+ can+ handle+ for+ your+ dependent+ is+ limited+ to+ $15,000+ per+ month.+ This+ means+ that+ a+ guardianship+ order+ cannot+ be+ used+ to+ manage+ a+ flat+ for+ your+ dependent+adult+to+live,+or+to+pass+your+wealth+to+him+ • Guardians+ are+ not+ under+ an+ obligaEon+ to+ assist+ persons+ with+ intellectual+disability+with+making+their+own+decisions � Part B: Existing Tools � Enduring Power of Attorney ALorney+ Donor+ 6&
9/3/16& Part B: Existing Tools � Enduring Power of Attorney • � An+enduring+power+of+aLorney+allows+someone+(the+donor)+who+is+sEll+mentally+ capable+to+appoint+an+aLorney+to+take+care+of+his+financial+maLers+in+the+event+ that+ he+ becomes+ mentally+ incapacitated.+ For+ example,+ you+ may+ appoint+ an+ aLorney+to+manage+your+financial+affairs,+even+to+sell+or+make+use+of+your+flats+or+ other+properEes+on+your+behalf+when+you+are+unable+to+do+so.+The+aLorney+may+ use+the+assets+to+provide+for+your+dependent+with+intellectual+disability++ • +An+aLorney+has+no+financial+limit+on+the+amount+of+property+he/she+can+handle+ on+ behalf+ of+ the+ donor.+ However,+ an+ aLorney+ deals+ with+ the+ donor’s+ financial+ assets+only,+but+will+not+decide+on+the+where+the+donor’s+intellectually+disabled+ dependent+should+live+and+what+medical+treatment+he+receives � • � An+aLorney+has+full+power+to+deal+with+the+donor’s+assets+without+consulEng+the+ donor+ Part C: Existing Tools �� Private Trust 7&
9/3/16& �� Property+passed+to+ Trust+property+ the+trust+during+ managed+by+trustee+ seLlor’s+lifeEme+ to+generate+income � SeLlor+ + � Karen+Trust+ Beneficiary+ Living+expenses+ of+$120,000+per+ month+to+be+ provided+by+the+ trust+ School+fees+for+four+ Remaining+funds+to+be+donated+to+ nephews+totaling+approx.+ charity+a7er+the+mother+passes+away+ $1.7+million+ 15& & g n l i i l w & d n a & ����������������������� y h t r o o & w s l s t a u s & r i t o & a & h & d w n & fi y , l o & s t u & & o e y t h a s u i t d & e a t t & r n o g a N & r & e o v l r ] e e s s o & & t e & h e t e h & t s o t u r b t e & v i v r u s o & & t y e l k l i & y a r i c fi e n e b High&fees&charged&by& professional&trustees& 16& 8&
9/3/16& Part C: Mechanism under the Government’s consideration �� Special Needs Trust QUESTIONS 17-24 �������� ! !����������� Funds+ transferred+ by+ seLlors+will+be+pooled+ SeLlor+ SeLlor++ SeLlor++ Trustee+ together+ to+ keep+ the+ A+ B+ C+ management+ fee+ to+ a+ minimum � 1. Caregiver/seLlor+will+devise+a+care+plan+and+write+a+leLer+of+ ++Case+ intent+during+his+lifeEme.+Caregiver/seLlor+will+then+transfer+a+ Manager+ small+sum+of+money+(e.g.+$5,000)+to+set+up+the+trust � 2. Caregiver+ will+ execute+ a+ will+ at+ the+ same+ Eme+ to+ transfer+ a+ substanEal+amount+from+his+estate+into+the+trust+on+his+death � 3. The+ trust+ will+ be+ acEvated+ when+ the+ caregiver+ passes+ away.+ The+ trustee+ will+ then+ make+ periodic+ distribuEon+ to+ the+ +Caregiver+ +Caregiver+ +Caregiver+ succeeding+caregiver+according+to+the+leLer+of+intent+and+care+ plan+ � Beneficiary+ Beneficiary+ 4. The+ trustee’s+ case+ manager+ can+ make+ periodic+ visits+ to+ the+ Beneficiary+ A+ C+ dependent+ to+ ensure+ that+ the+ caregiver+ is+ looking+ a7er+ the+ B+ dependent � 5. Upon+the+dependent’s+passing,+the+trustee+will+distribute+the+ surplus+to+any+person(s)+indicated+in+the+leLer+of+intent+ 9&
9/3/16& Survey Deadline: May 28, 2016 Website /online survey: http://snt.support Email: snt.support@hku.hk https://www.facebook.com/hkusnt/ � Thank you! 10&
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