DLKY (Committee of the Estate of WSY) v. LCK AND OTHERS

DLKY (Committee of the Estate of WSY) v. LCK AND OTHERS

The court was satisfied there was reason to believe WSY lacked testamentary capacity and therefore made a statutory will on her behalf that reflects what she would have done if notionally restored; it found a trust for CK (New CK Trust) was the preferable mechanism to protect CK's long‑term welfare and reduce litigation risk; the impugned transactions were set aside by concession; the statutory will provides specified monetary sums to CK (via trust), to the two biological sons (L Brothers) HK$40M each and divides the remaining residue among the LH family in three equal shares; costs ordered mostly to be paid from the common fund with specified exceptions.

Citation
[2022] HKCFI 496
Parties
Plaintiff (hcmh 7/2016); Son/beneficiary Candidate: LCK; 1st Defendant; Committee of the Estate of WSY (applicant for Statutory Will): DLKY; 2nd Defendant; Guardian Ad Litem for CK: MJW; 3rd Defendant; Step‑son/beneficiary Candidate: LCC; 4th Defendant; Step‑daughter (deceased): LKF; 5th Defendant; Step‑daughter/beneficiary Candidate: LKC; 6th Defendant; Step‑daughter (other Branch): LKC2; 7th Defendant; Biological Son (one of L Brothers): LCT; 8th Defendant; Biological Son (other L Brother): LCT2; 9th Defendant; Issue of LKF: CZY; 10th Defendant; Issue of LKF: CYC; 11th Defendant; Issue of LKF: CHZ; 12th Defendant; Issue of LKF: CYC12
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
17 February 2022
Case Number
HCA398/2017
Procedural Posture
Application Under Part II Mental Health Ordinance for Statutory Will for Mentally Incapacitated Person (hcmh 7/2016); Related High Court Action HCA 398/2017 to Set Aside Transactions / Judgment Delivered: Reasons for Judgment and Decision on Costs (final Orders, 9 Feb 2021 Judgment; Reasons/costs 17 Feb 2022)
Outcome
Statutory will for WSY made and executed; Impugned Transactions set aside by concession; New CK Trust approved and to be funded as ordered; estate distribution orders made; costs orders as set out
Legal Topics
Statutory Will, Testamentary Capacity, Setting Aside Transactions for Incapacity, Lifetime Settlement to Trust for Incapacitated Beneficiary, Allocation of Costs
Source Language
EN
Mental Health Law Wills and Probate Trusts Civil Procedure (costs) Statutory Will Testamentary Capacity Setting Aside Transactions for Incapacity Lifetime Settlement to Trust for Incapacitated Beneficiary +1 more

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Parties

LCK

Plaintiff (hcmh 7/2016); Son/beneficiary Candidate

DLKY

1st Defendant; Committee of the Estate of WSY (applicant for Statutory Will)

MJW

2nd Defendant; Guardian Ad Litem for CK

LCC

3rd Defendant; Step‑son/beneficiary Candidate

LKF

4th Defendant; Step‑daughter (deceased)

LKC

5th Defendant; Step‑daughter/beneficiary Candidate

LKC2

6th Defendant; Step‑daughter (other Branch)

LCT

7th Defendant; Biological Son (one of L Brothers)

LCT2

8th Defendant; Biological Son (other L Brother)

CZY

9th Defendant; Issue of LKF

CYC

10th Defendant; Issue of LKF

CHZ

11th Defendant; Issue of LKF

CYC12

12th Defendant; Issue of LKF

Procedural Posture

Application Under Part II Mental Health Ordinance for Statutory Will for Mentally Incapacitated Person (hcmh 7/2016); Related High Court Action HCA 398/2017 to Set Aside Transactions / Judgment Delivered: Reasons for Judgment and Decision on Costs (final Orders, 9 Feb 2021 Judgment; Reasons/costs 17 Feb 2022)

Legal Issues

  1. 1 Whether the court should exercise power under the Mental Health Ordinance to make a statutory will for WSY
  2. 2 Whether provision for WSY's incapacitated son CK should be by trust or outright gift
  3. 3 What testamentary dispositions WSY would have made if notionally restored to capacity (contents of statutory will)

Ratio Decidendi

The court was satisfied there was reason to believe WSY lacked testamentary capacity and therefore made a statutory will on her behalf that reflects what she would have done if notionally restored; it found a trust for CK (New CK Trust) was the preferable mechanism to protect CK's long‑term welfare and reduce litigation risk; the impugned transactions were set aside by concession; the statutory will provides specified monetary sums to CK (via trust), to the two biological sons (L Brothers) HK$40M each and divides the remaining residue among the LH family in three equal shares; costs ordered mostly to be paid from the common fund with specified exceptions.

Court Disposition

Statutory will for WSY made and executed; Impugned Transactions set aside by concession; New CK Trust approved and to be funded as ordered; estate distribution orders made; costs orders as set out

Orders

  • Order made 9 Feb 2021 for making and execution of statutory will for WSY (will executed 10 Feb 2021)
  • Impugned Transactions (2003 POAs, 2003 Will, 1st and 2nd 2004 POAs, KH/CH/ET/FC transfers, CH assignment, 2004 Will and related documents) set aside pursuant to concessions