Hong Kong Ordinances

MENTAL HEALTH ORDINANCE - SECT 10E

Preservation of interests in mentally incapacitated person's property

(Past version on 01/02/1999).

(1) Where any property of a mentally incapacitated person has been disposed of
under this Part, and under his will or his intestacy, or by any gift perfected
or nomination taking effect on his death, any other person would have taken an
interest in the property but for the disposal-

   (a)  he shall take the same interest, if and so far as circumstances allow,
        in any property belonging to the estate of the deceased which
        represents the property disposed of; and

   (b)  if the property disposed of was real property any property
        representing it shall so long as it remains part of his estate be
        treated as if it were real property.

(2) The Court, in ordering, directing or authorizing under this Part any
disposal of property which apart from this section would result in the
conversion of personal property into real property, may direct that the
property representing the property disposed of shall, so long as it remains
the property of the mentally incapacitated person or forms part of his estate,
be treated as if it were personal property.

(3) References in subsections (1) and (2) to the disposal of property are
references to-

   (a)  the sale, exchange, charging or other dealing (otherwise than by will)
        with property other than money;

   (b)  the removal of property from one place to another;

   (c)  the application of money in acquiring property; or

   (d)  the transfer of money from one account to another, and references to
        property representing property disposed of shall be construed
        accordingly and as including the result of successive disposals.

(4) The Court may give such directions as appear to it necessary or expedient
for the purpose of facilitating the operation of subsection (1), including the
carrying of money to a separate account and the transfer of property other
than money. (Amended 32 of 2000 s. 48)

(5) Where the Court has ordered, directed or authorized the expenditure of
money for the carrying out of permanent improvements on, or otherwise for the
permanent benefit of, any property of the mentally  incapacitated person, it
may order that the whole or any part of the money expended or to be expended
shall be a charge upon the property, whether without interest or with interest
at a specified rate; and an order under this subsection may provide for
excluding or restricting the operation of subsection (1).

(6) A charge under subsection (5) may be made in favour of such person as may
be just, and in particular, where the money charged is paid out of the
mentally incapacitated person's general estate, may be made in favour of a
person as trustee for the mentally incapacitated person; but no charge under
that subsection shall confer any right of sale or foreclosure during the
lifetime of the mentally incapacitated person. (Added 81 of 1997 s. 9)