Thinking ahead is not a taboo: How advance medical directives and early wealth planning benefit you and your family

Planning Together: The Family Conversations That Matter Most

Most of us are happy to talk about investing and growing our wealth but fewer of us talk about how to carry on wealth and protect legacies. A new grandchild, a business milestone, or a savings plan that matures and no longer fits the life you lead today are all triggers for families to re-evaluate their objectives. Our recent event with a lawyer and a doctor looked at three areas worth planning together as a family.

• Keith Hariman: Specialist in Psychiatry and Managing Director (Clinical Operations) at OT&P Healthcare, bringing extensive clinical and forensic psychiatry experience.
• Ryanne Lai: Co-founder of ForeverGift.hk and FiveBlessings.hk, a practicing solicitor dedicated to promoting legacy donation and one-stop end-of-life planning.
• Janet Hung: Head of Client Advisory at Endowus Hong Kong.

Regarding your own medical arrangements, you should express your wishes to your family as early as possible

An Advance Medical Directive (AMD) lets anyone aged 18 or over, who is mentally sound, write down which life-sustaining treatments they would or wouldn't want at the end of life. Hong Kong's new law, which took effect in July, puts AMDs on a clearer legal footing. You can now upload your AMD to eHealth, and emergency responders must respect it if they know it exists. An AMD only applies in narrow circumstances: terminal illness, irreversible unconsciousness, or an end-stage irreversible condition. It doesn't stop anyone from trying to save you after a sudden accident. Its biggest benefit may be what it spares your family: having to make an agonising decision on your behalf, and the guilt that often follows.

Talk to your family members before you sign. Don't do it alone

Doctors call this Advance Care Planning, meaning the patient and their loved ones agree early on the values that should guide care, and ensure these are achievable objectives for the future caregivers. A family that first learns about an AMD in a hospital corridor faces a double shock. A family that has talked it through can feel more at peace with whatever comes.

When arranging financial authorization, look for the word "enduring"

If illness or an accident leaves you unable to manage your affairs, your money can become frozen. That includes property held jointly with your spouse. Without advance arrangements, your family may have to go through guardianship or a court application. Both take months, and both come with limits. An Enduring Power of Attorney (EPOA) lets you choose now who will manage your finances if you lose capacity. You can also set limits or require joint decisions. A standard power of attorney, including many bank forms, stops working once you lose mental capacity, which is exactly when it's needed most. The word "enduring" is what makes the difference.

A will focuses on clarity, not the amount of wealth

Wills are not only for the very rich or for families likely to quarrel. In practice, a clear will helps prevent misunderstandings between loved ones. It lets you include people outside your immediate family, a charity you care about, or even the person who will look after your pet. Without one, your estate is divided by a legal formula. If you have no surviving relatives, it may go to state coffers. If you expect the will to be questioned, or you're older or have health concerns, a doctor's confirmation of mental capacity can add peace of mind.

Financial plans should grow with you 

What matters to you at 40, with young children, will be different at 60 or 80. A will, an EPOA or an investment plan isn't set in stone, and reviewing them from time to time is part of good planning. Choosing who carries out your wishes deserves the same care. An executor or attorney should be someone trustworthy, capable and willing, and it helps to ask them before you name them.

Align your family on financial goals 

Planning also means making sure the people who may one day act for you understand your intentions. Share how your assets are invested and what you're trying to achieve, so a well-meaning decision made on your behalf doesn't take your portfolio in a direction you never intended. Practical steps can also make access easier at a difficult time. Endowus offers the ability to set up joint accounts with right of survivorship, so a spouse or adult child can continue managing assets without waiting months for estate administration (FAQ to learn more).

Start today

Pick a calm moment, perhaps around a family milestone, and agree on a few shared objectives. Decide how you'd want medical decisions made, who should handle your finances if needed, and what you hope your wealth will do for the people and causes you care about. Then bring in the right professionals to put it in writing to give your family clarity, confidence and one less thing to worry about.

Disclaimer

Risk Warnings

Investment involves risk. Past performance is not an indicator nor a guarantee of future performance or returns. Projected performance or returns is not guaranteed to materialise. The value of investments and the income from them can go down as well as up, and you may not get the full amount you invested. Rates of exchange may cause the value of investments to go up or down. Individual stock performance does not represent the return of a fund.

General risk warnings relating to collective investment schemes

Before making an investment decision, you are reminded to refer to the relevant prospectus/offering document for specific risk considerations and related fees and charges. Funds are not a bank deposit and not capital guaranteed, and are subject to investment risks, including the possible loss of the principal amount invested. Some of the funds also involve derivatives. Do not invest in them unless you fully understand and are willing to assume the risks associated with them.

Opinions

Any forward-looking statements, prediction, projection or forecast on the economy, stock market, bond market or economic trends of the markets contained in this material are subject to market influences and contingent upon matters outside the control of Endowus HK Limited (“Endowus”) and therefore may not be realised in the future. Further, any opinion or estimate is made on a general basis and subject to change without notice. In presenting the information above, none of Endowus HK Limited, its affiliates, directors, employees, representatives or agents have given any consideration to, nor have made any investigation of the objective, financial situation or particular need of any user, reader, any specific person or group of persons. Therefore, no representation is made as to the completeness and adequacy of the information to make an informed decision. You should carefully consider whether any investment views and products/services are appropriate in view of your investment experience, objectives, financial resources and relevant circumstances. You may also wish to seek financial advice through a financial advisor or the Endowus platform and independent legal, accounting, regulatory or tax advice, as appropriate.

No invitation or solicitation

Nothing contained in this article should be construed as a solicitation, an offer to buy or sell, or recommendation, to acquire or dispose of any security, commodity, investment or to engage in any other transaction in any jurisdiction in which such solicitation, offer to buy or sell would be unlawful under the securities laws in such jurisdiction. No information included in this article is to be construed as investment advice or as a recommendation or a representation about the suitability or appropriateness of any advisory product or service; or an offer to buy or sell, or the solicitation of an offer to buy or sell, any security, financial product, or instrument; or to participate in any particular trading strategy. Investors should seek independent financial and tax advice before making any investment decision.

Product Risk Rating: Please note that any product risk rating (the “PRR”) provided by us is an internal rating assigned based on our product risk assessment model, and is for your reference only. The PRR is subject to change from time to time. The PRR does not take into account your individual circumstances, objectives or needs and should not be regarded as advice or recommendation to purchase, hold or sell any fund or make any other investment decisions. Accordingly, you should not solely rely on the PRR in making your investment decision in the relevant Fund.

Endowus HK Limited (CE No.: BQR225) is licensed by the Securities and Futures Commission of Hong Kong. 

This content has not been reviewed by the Securities and Futures Commission or any regulatory authority in Hong Kong.

‍