Key points
This case in 30 seconds
- Situation
- The woman’s parents have lived in the same old building for many years and have always planned to leave the property to her.
- Approach
- We helped the couple add a clause stating that property she later inherits from her parents belongs to her alone.
- Result
- The agreement states that property she later inherits from her parents belongs to her alone and will not be divided if they separate.
Three points for setting out future inheritance
- Gather the details of the property or estate your parents may leave you.
- State in the agreement that anything inherited later belongs to you alone.
- If you separate, this part is not divided with your other assets.
Background
The woman’s parents have lived in the same old building for many years and have always planned to leave the property to her.
She and her partner are about to marry and want to set out their arrangements clearly beforehand.
She worried that, if property she inherits later is not mentioned, it could be treated as part of what they own during the marriage if they separate.
- Unsure whether property inherited later counts as part of what you own during the marriage
- Worried that the agreement lists only current assets and does not clearly cover what you inherit later
- Not sure how an agreement should deal with property your parents leave you in future
She had looked at an online template, but its clauses covered only current assets and said nothing about anything inherited or received later.
Before signing, she wanted future inheritance to be set out clearly too.
To do that, the first step is to work out how the agreement should treat property inherited later.
Why should the agreement cover future inheritance?
The agreement should cover future inheritance because the property is still in her parents’ names. If assets are counted only as they stand at a later date, an inheritance still to come is easily overlooked.
Property your parents leave you later: who owns it after marriage?
Whether property or an estate left by parents later, or gifts from relatives and friends, belongs to the person who receives it.
Listing only current assets or covering future inheritance: what is the difference?
| Current assets only | Future inheritance covered | |
|---|---|---|
| How it is written | Lists only current property and savings | Covers what will be inherited later as well |
| Common omission | Says nothing about what is inherited or received later | States that it belongs to the person who receives it |
| If you separate | The inheritance to come is easily overlooked | What is inherited belongs to that person and is not divided |
| Who owns the property | Only says the property goes to one side | Inheritance is kept apart from current assets |
Only current assets were listed, and nothing was said about what is inherited or received later.
How will the agreement deal with future inheritance?
In this case, the approach was to add a clause stating that property she later inherits from her parents belongs to her alone and will not be divided with other assets if they separate.
For the other parts an agreement should cover, see ‘Prenuptial agreement’.
Once future inheritance is set out clearly, what remains is knowing how each stage works in practice.
How we helped
After the first consultation, the same dedicated consultant follows your case through to signing. There are three stages.
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Gathering details
From the first consultation
At the first consultation, the dedicated consultant finds out about the current state of her parents’ property and what each of them thinks about future inheritance.
We help the couple set out the background to the property and the arrangements they want written into the agreement.
Once the background to the property is clear, there is a sound basis for drafting.
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Drafting the agreement
Once everything is in order
We help draft the clauses, stating that property she later inherits from her parents belongs to her alone.
The clauses say this part is not divided if they separate and is kept apart from their other assets acquired during the marriage.
Setting out the future arrangements clearly gives both of them something to rely on later.
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Signing stage
Before the wedding
We remind both of them to leave enough time to sign before the wedding, and we help prepare the documents.
After signing, we suggest each of them keeps an original.
Once the agreement is properly signed, future inheritance has a clear basis.
Throughout, the client could phone the dedicated consultant at any time, in Cantonese, Mandarin or English.
For every document, we first explain its contents and what needs following up.
We are a divorce consultancy. We help you organise information, prepare documents and understand the procedure. If your case needs legal advice or a representative in court, we will tell you honestly and help you make other arrangements.
With the three stages joined up, this was the outcome.
Outcome
The wife will inherit her parents’ property one day. The agreement states that what she inherits belongs to her alone and is not divided if they separate.
Because the agreement states that property she later inherits from her parents belongs to her alone, this part is on record in the agreement.
For the couple, the biggest difference is that the property she later inherits is recorded separately from their other assets acquired during the marriage.
While the agreement was being drafted, the dedicated consultant explained the meaning of each clause to both of them.
Without a clause on future inheritance, it is harder to separate this part from other assets later.
The agreement is signed and the couple carry on with the arrangements it sets out, which was what mattered most to her from the start.
How does the procedure change if your situation is different?
This approach was used because the property is still in her parents’ names and will only be inherited later. If your situation is different, the approach will change.
Property already transferred to her: If the property has already been transferred into her name, the agreement can state directly that it belongs to her alone. Property held in one person’s name before marriage generally stays with that person after marriage.
Property bought before marriage, mortgage paid together: If the property was bought before marriage and the couple pay the mortgage together afterwards, the approach is similar to ‘the case of a flat bought before marriage and paid for together afterwards’: the agreement states separately the down payment made before marriage and the proportion of mortgage payments made afterwards.
A family business or company shares: If a family business or company shares are involved, the approach is similar to ‘the case of a family business where the parents want matters settled before the marriage’: the agreement states that the shares and any increase in their value go to one person, while setting reasonable protection for the other.
Three things you can do first in a similar situation
- Gather the details of the property or estate your parents may leave you.
- Talk to a dedicated consultant early about how the agreement should set out future inheritance.
- Discuss with your partner how the part you inherit later should be handled.
FAQ
Does the agreement need to cover property your parents leave you later?
Yes.
The agreement can state whether property or an estate left by parents later, or gifts from relatives and friends, belongs to the person who receives it.
What goes wrong if only current assets are listed?
A common gap is listing only current assets and saying nothing about what is inherited or received later. That part is then harder to separate from other assets afterwards.
How will the agreement deal with inherited property?
The agreement states that what she inherits belongs to her alone and is not divided if they separate.
The property is still in my parents’ names. Is it too early to sign an agreement?
The property is still in her parents’ names, but the agreement can already say how anything inherited later will be handled.
Do you give legal advice or represent clients in court?
We are divorce consultants. We help you gather information, prepare documents and understand the procedure.
If your case needs legal advice or court representation, we will tell you honestly and help you make other arrangements.
Illustrative case: this page is adapted from similar cases we have handled. The people and details have been changed, and it is not a record of an identifiable client.
Every case is different, and the time taken and the result will vary. This page is general information only. It is not legal advice and is not a promise about your case.
