1. Overview: Why Overseas Assets Are a Challenge

Hong Kong is one of the most internationally connected cities in the world. Many Hong Kong residents hold assets in multiple jurisdictions — property in Mainland China or the UK, bank accounts in Canada or Australia, brokerage accounts with US-listed stocks, and insurance policies purchased abroad. When a Hong Kong resident dies, their family often discovers that recovering these overseas assets is far more complex, time-consuming, and expensive than dealing with local assets.

The fundamental challenge is that each jurisdiction has its own succession laws, probate processes, and tax rules. A Grant of Probate issued by the Hong Kong High Court is not automatically recognised overseas. In some jurisdictions (like the UK and Australia), you may be able to "reseal" the HK grant — effectively having it recognised locally. In others (like Canada and the USA), you must apply for an entirely separate probate or letters of administration.

Further complicating matters, some jurisdictions impose inheritance or estate taxes on the deceased's assets located within their borders — even if the deceased was not a citizen or resident. This can result in significant, unexpected tax bills that must be settled before the estate can be distributed.

This guide covers the most common jurisdictions where Hong Kong residents hold assets, with detailed procedures, timelines, and costs for each.

2. Mainland China Assets (Detailed)

Mainland China is by far the most common jurisdiction where Hong Kong residents hold overseas assets. Decades of cross-border investment, family ties, and the Greater Bay Area initiative mean that millions of Hong Kong residents have bank accounts, property, business interests, or other assets in China. Recovering these assets after death involves navigating China's distinct legal system, which differs significantly from Hong Kong's common law framework.

2.1 China's Succession Law: Key Differences from Hong Kong

The People's Republic of China operates under a civil law system. Succession is governed by the Civil Code of the PRC (Book 6: Succession), which came into effect on 1 January 2021, replacing the earlier Succession Law of 1985. Key differences include:

• Forced heirship: Chinese law provides for mandatory inheritance shares. A surviving spouse, children, and parents are "first-order" heirs and generally inherit in equal shares. You cannot completely disinherit a first-order heir who lacks the ability to work and has no source of income.
• Community property: If the deceased was married, assets acquired during the marriage may be treated as community property under Chinese law — meaning only 50% of such assets form part of the estate.
• No concept of "executor": China does not have a direct equivalent to the common-law executor. Instead, heirs collectively manage the estate. An "estate administrator" (遺產管理人) can be appointed under the 2021 Civil Code.
• Applicable law: Under Chinese private international law, succession to immovable property (real estate) in China is governed by Chinese law, regardless of the deceased's nationality or domicile. Succession to movable property (bank accounts, investments) is governed by the law of the deceased's habitual residence at the time of death.

2.2 How to Search for Mainland China Bank Accounts

Unlike Hong Kong, where you must visit each bank individually, China has a slightly more centralised approach in some areas:

• People's Bank of China (PBOC) enquiry: Heirs can apply to the local branch of the PBOC to search for bank accounts held by the deceased within that region. You will need notarised proof of identity, relationship, and death.
• Individual bank enquiries: You can also approach major Chinese banks directly — ICBC, Bank of China, China Construction Bank, Agricultural Bank of China, and Bank of Communications. Each bank can search its nationwide system.
• Cross-border accounts: Many Hong Kong residents opened "dual-currency" or cross-border accounts through Hong Kong branches of Chinese banks. Check with BOC(HK), ICBC(Asia), and CCB(Asia) in Hong Kong — they may have records linking to mainland accounts.

2.3 China Property (Greater Bay Area, Shenzhen, and Beyond)

Property ownership in Mainland China involves unique considerations:

• Land-use rights vs ownership: In China, all land belongs to the state. What is "owned" is a land-use right (typically 70 years for residential property). This right is inheritable.
• Property registration: The local Housing and Construction Bureau (住房和建設局) or Natural Resources Bureau (自然資源局) maintains property records. Heirs can search for registered properties using the deceased's identity documents.
• Greater Bay Area properties: Many Hong Kong residents purchased property in Shenzhen, Zhuhai, Zhongshan, Dongguan, Foshan, Guangzhou, and other GBA cities. Each city has its own registration bureau.
• Transfer process: Property transfer to heirs requires notarised inheritance documents, translated and legalised, presented to the local property registration bureau. A transfer tax (deed tax) of 3-5% may apply.

2.4 Required Documents: Notarisation and Legalisation

This is perhaps the most complex and time-consuming aspect of recovering Mainland China assets. Chinese institutions require documents to go through a multi-step authentication process:

2.5 Which Chinese Court Has Jurisdiction

If there is a dispute among heirs or if a court declaration is needed:

• Immovable property: The court where the property is located has exclusive jurisdiction.
• Movable property: Generally the court where the deceased had their last habitual residence. For Hong Kong residents, this may require establishing a connection to a specific Chinese jurisdiction (e.g., where the bank account was opened).
• Level of court: Inheritance cases involving foreign or Hong Kong parties are typically handled by Intermediate People's Courts (中級人民法院) rather than basic-level courts.

2.6 Mainland-HK Mutual Recognition of Wills

China and Hong Kong do not have a comprehensive mutual recognition arrangement for probate grants. However:

• A will made in Hong Kong can be recognised in China if it meets the formal requirements of either Hong Kong law or Chinese law (under the principle of alternative reference in private international law).
• A Hong Kong Grant of Probate is not directly enforceable in Mainland China. Heirs must go through the notarisation/legalisation process described above to establish their entitlement.
• The Arrangement on Reciprocal Recognition and Enforcement of Civil and Commercial Judgments (signed in 2019) may eventually simplify this, but its current scope does not fully cover succession matters.

2.7 Timeline for Recovering Mainland China Assets

3. United Kingdom Assets

The UK is another common jurisdiction for Hong Kong residents' assets, reflecting historical ties between Hong Kong and Britain. Many Hong Kong residents own property in London or other UK cities, hold UK bank accounts, or have investments in UK-listed securities.

3.1 Resealing of HK Grant of Probate

Thanks to the Colonial Probates Act 1892 (still in force), a Hong Kong Grant of Probate or Letters of Administration can be "resealed" by the High Court of England and Wales (or the equivalent courts in Scotland and Northern Ireland). Resealing means the HK grant is recognised and given the same effect as a UK grant.

Requirements for resealing:

• The original HK Grant of Probate or Letters of Administration
• A certified copy of the will (if any)
• An Inland Revenue affidavit (IHT form) for UK inheritance tax purposes
• Application through the Principal Registry of the Family Division, or a District Probate Registry
• The application must usually be made by a UK-based solicitor acting on your behalf

3.2 When Resealing Works vs When New UK Probate Is Needed

Resealing is available when:

• The HK Grant covers the UK assets
• The deceased was domiciled in Hong Kong at the time of death
• There are no disputes about the validity of the HK Grant

A fresh UK grant may be needed when:

• The HK Grant has been revoked or is under challenge
• The deceased also had a UK domicile or there is a domicile dispute
• The deceased left a separate UK will that differs from the HK will
• The estate includes complex UK trust structures

3.3 UK Inheritance Tax (IHT)

Key points about UK IHT for Hong Kong decedents:

• UK real estate: Always subject to UK IHT regardless of the owner's domicile
• UK bank accounts: Subject to IHT if the account is with a UK branch
• UK shares: Subject to IHT if registered on a UK register
• Nil-rate band: £325,000 (frozen until at least April 2028). A residence nil-rate band of up to £175,000 may also apply if a UK home is left to direct descendants.
• Spousal exemption: For non-UK-domiciled spouses, the exemption is limited to £325,000 (not unlimited as it is for UK-domiciled spouses)
• Payment: IHT must generally be paid before the Grant (or resealing) is issued. This creates a "catch-22" — you need the Grant to access the assets, but you need to pay IHT before the Grant is issued. Banks may release funds directly to HMRC in some cases.

3.4 Timeline and Costs

4. Australia Assets

Australia is a popular destination for Hong Kong emigrants and investors. Many Hong Kong residents hold Australian property, bank accounts, and superannuation funds.

4.1 Resealing of HK Grant

Australia recognises Hong Kong Grants of Probate through resealing provisions in each state and territory's succession legislation. Resealing is available in:

• New South Wales — Supreme Court of NSW
• Victoria — Supreme Court of Victoria
• Queensland — Supreme Court of Queensland
• Western Australia, South Australia, Tasmania, ACT, NT — respective Supreme Courts

The application is made to the Supreme Court of the state or territory where the assets are located. If assets are in multiple states, you generally only need to reseal in one state, though some institutions may require a separate resealing in their state.

4.2 No Inheritance Tax

Australia does not impose any inheritance or estate tax. This is a significant advantage compared to the UK or USA. However:

• Capital gains tax (CGT) may apply when the estate sells Australian assets (particularly real estate and shares). The deceased's cost base carries over to the beneficiary.
• Superannuation death benefits: Tax treatment depends on whether the beneficiary is a "tax dependant" (spouse, child under 18, financial dependant) — non-dependant beneficiaries may pay tax on the taxable component of super.

4.3 Timeline and Costs

5. Canada Assets

Canada does not have a resealing arrangement with Hong Kong. This means a Hong Kong Grant of Probate cannot be directly recognised in Canada — a separate Canadian probate (or "Certificate of Appointment of Estate Trustee") must be obtained in the relevant province.

5.1 Provincial Differences

Probate in Canada is a provincial matter, and the rules vary significantly:

• British Columbia: The most common province for Hong Kong residents' assets. Probate fees are approximately 1.4% of the estate value above $50,000. The will must be "proved" in BC Supreme Court.
• Ontario: Estate administration tax of approximately 1.5% on estate value above $50,000. Application through the Ontario Superior Court of Justice.
• Alberta: Flat fee structure (capped at C$525 regardless of estate value). Relatively simpler process.
• Quebec: Civil law jurisdiction (unique in Canada). Notarial wills do not require probate; other wills must be verified by the Superior Court.

5.2 No Inheritance Tax (But Deemed Disposition)

Canada does not impose a direct inheritance or estate tax. However, the deceased is deemed to have disposed of all assets at fair market value immediately before death. This triggers capital gains tax on any appreciation — which can be substantial for real estate or investments held for many years. A final Canadian tax return must be filed.

5.3 Timeline and Costs

6. United States Assets

The USA presents perhaps the most complex cross-border estate situation for Hong Kong residents, due to its federal estate tax regime and state-level probate systems.

6.1 Federal Estate Tax for Non-Residents

US-situated assets that are subject to federal estate tax include:

• US real estate (including through certain entities)
• US-listed stocks — shares in US corporations, even if held through a Hong Kong brokerage account
• US mutual funds and ETFs
• US bank deposits (though certain "portfolio interest" exemptions may apply)
• Tangible personal property located in the US

6.2 State-Level Probate

Probate in the USA is handled at the state level. Common states for Hong Kong residents' assets include:

• California: Probate through the Superior Court. California also has its own estate tax considerations. Fees are set by statute (approximately 4% of the first $100,000, scaling down).
• New York: Surrogate's Court handles probate. New York imposes its own estate tax (exemption approximately US$6.9 million, with a "cliff" — if the estate exceeds 105% of the exemption, the entire estate is taxed).
• Hawaii, Washington, Oregon: These states also have separate state estate taxes.

An "ancillary probate" is typically required — this is a probate proceeding specifically for non-domiciliary decedents who held assets in that state.

6.3 US-Listed Stocks and Brokerage Accounts

Many Hong Kong residents hold US stocks (Apple, Tesla, etc.) through Hong Kong brokerages such as Interactive Brokers, Futu (moomoo), or Tiger Brokers. Important considerations:

• US stocks are considered US-situated property for estate tax purposes, regardless of where the brokerage account is held
• The brokerage may freeze the account upon learning of the death and may require either a US probate document or a specific transfer form
• A US Individual Taxpayer Identification Number (ITIN) for the estate may be needed
• IRS Form 706-NA (US Estate Tax Return for Non-Resident Aliens) must be filed if the US-situated assets exceed US$60,000

6.4 Timeline and Costs

7. Macau Assets

Macau, like Mainland China, operates under a civil law system — its legal framework is based on Portuguese civil law. Many Hong Kong residents hold property or bank accounts in Macau.

Specific Procedures

• Applicable law: Macau's Civil Code governs succession to immovable property in Macau. For movable property of a non-Macau-domiciled decedent, the law of their habitual residence (Hong Kong) applies.
• Forced heirship: Macau law provides for "legitimate portion" (legitima) — a reserved share for the spouse and descendants that cannot be overridden by will. Typically two-thirds of the estate is reserved.
• No resealing: A Hong Kong Grant of Probate is not directly recognised in Macau. Heirs must apply to the Macau courts for a "habilitação de herdeiros" (qualification of heirs) proceeding.
• Document authentication: Documents from Hong Kong must be notarised and legalised. Macau has a notarisation system similar to (but separate from) Mainland China's.
• No inheritance tax: Macau abolished its inheritance and gift tax (imposto sobre sucessões e doações) in 2001. However, a stamp duty (selo) of up to 5% applies on property transfers.
• Timeline: 3-9 months for uncontested cases.

8. Taiwan Assets

Some Hong Kong residents hold assets in Taiwan, including property, bank accounts, and investments. Taiwan imposes its own estate and gift tax regime.

Taiwan Estate Tax

• Estate tax rates: Progressive rates of 10%, 15%, and 20% on the taxable estate above the exemption threshold.
• Exemption: NT$13.33 million (approximately HK$3.3 million) for resident decedents. For non-resident decedents (including Hong Kong residents), the exemption may be limited, and only Taiwan-situated assets are taxed.
• Filing deadline: Estate tax must be filed within 6 months of the date of death (extensions available).
• Tax clearance certificate: Required before assets can be transferred. Banks and the land registry will not process transfers without it.

Probate Process

• No resealing: Taiwan does not recognise Hong Kong Grants of Probate. Heirs must apply to the relevant Taiwan District Court.
• Document authentication: Hong Kong documents must be notarised, then authenticated by either the Hong Kong Economic and Trade Office in Taiwan or through the appropriate consular channels.
• Land ownership: Foreign nationals (and Hong Kong residents treated as such) may face restrictions on owning agricultural land in Taiwan.
• Timeline: 6-12 months for uncontested estates.

9. Common Jurisdictions for HK Residents' Overseas Investments

Beyond the major jurisdictions covered above, Hong Kong residents commonly hold assets in several other locations:

10. Double Taxation and Inheritance Tax

Hong Kong abolished estate duty in February 2006. This means no tax is payable in Hong Kong on a deceased person's estate, regardless of the value. However, this creates a unique situation for cross-border estates:

The Double Taxation Problem

• Hong Kong has no inheritance/estate tax — so there is nothing to "credit" against foreign estate taxes
• Hong Kong has no estate tax treaties with any country (since there is no estate tax to negotiate about)
• This means foreign estate taxes on overseas assets are an absolute cost to the estate — there is no relief or credit available

Estate Planning Implications

While this guide focuses on recovering assets after death, it is worth noting that proper estate planning before death can significantly reduce cross-border tax exposure. Strategies include:

• Holding overseas property through corporate structures (though post-2017 UK rules largely closed this for UK property)
• Joint ownership with right of survivorship
• Life insurance policies to cover anticipated tax liabilities
• Gifting strategies (subject to each jurisdiction's gift tax rules)
• Trusts (complex and jurisdiction-specific)

11. Practical Tips for Cross-Border Estate Administration