When a person passed away (“the deceased”), the estate of the deceased will be succeeded by successors stipulated in the deceased’s will or, if the deceased died intestate (“without will”), will be according to the provisions of the Intestate’s Estate Ordinance (Cap. 73).
However, the succession to the estate of a deceased may not necessarily follow the prescriptions of Cap. 73 or that of the deceased’s will, IF a deed of family arrangement (“DFA”) is executed or a disclaimer is made by the beneficiary or beneficiaries of the deceased’s estate.
A DFA is a deed which shall be executed by all beneficiaries and all such persons has attained the age of majority and have full legal capacity, and voluntarily. In fact, the same result can also be achieved if some beneficiaries disclaim their shares in the estate. One of the considerations for whether to have a DFA or disclaimer is the possible stamp duty implications.
