Question 5

(25 marks)

John Lau is a successful businessman. He is 55 years old and has been married to Jenny Law for 30 years. They have two grown-up sons. When John was young, he had a relationship with his secretary Candice Ko and they had a daughter together. While he discontinued his relationship with his secretary, John supported his daughters living expenses after she was born. He loves all his children (two sons and one daughter) and would like to leave his wealth to them. John wishes to leave 20% of his wealth to each son, 50% to his daughter, and 10% to Jenny. He does not have a will and he has approached you to ask for estate planning advice. During your conversation with him, he is only interested in putting together a will but not in other aspects of estate planning. John does not want his wife to know that he has a will.

(a)	Explain two advantages of having a will with regards to Johns wish to leave his wealth to his family members.	(10 marks)
(b)	If John has a valid will in place when he passes away, discuss some of the other problems in terms of estate planning?	(15 marks)