Inheritance, last wills and testament info Thailand
A Thai English custom last will online by Bangkok Law Online |
4,800 THB |
A will is something you know you have to deal with but you don't really want to, but a last will
and testament insures your assets in Thailand are given to those who you have entrusted your estate to upon your death. If you have not made a will your wishes may not necessarily be carried out. There is currently no inheritance tax levied in Thailand. Inheritance tax is a tax paid on money or property you have received from someone who has died. The plans by the previous government to introduce inheritance tax in Thailand, as part of an effort to bridge income disparity, is no longer a priority and there are no plans for the implementation of such a tax at this time (June 2009).
Thailand inheritance law
If there is no will and Thai law applies on the estate the Thailand Civil and Commercial Code determines that the assets will be distributed amongst the statutory heirs. There are 6 classes of statutory heirs (Section 1629 Civil and Commercial Code) and they are entitled to inherit in the following order:
- descendants
- parents
- brothers and sisters of full blood
- brothers and sisters of half blood
- grandparents
- uncles and aunts
So long as there is an heir surviving in one of the classes, the heir of the lower class has no entitlement to share in the assets. The one exception is where there is a descendant and a parent in which case they take an equal share (section 1630). If there is more than one heir in any one class, they take an equal share of the entitlement available to that class. The surviving spouse is a statutory heir but their entitlement depends on what other class of statutory heir exists. If there are surviving children of the deceased, the spouse and children take the estate between them. Therefore, if there are three children, then the estate is divided in to four equal shares. If you are married, in Thailand your spouse may not be entitled to your entire estate when you die, or if you are unmarried but living with a Thai partner, your partner may not be entitled to anything at all.
Inheritance for foreigners with assets in Thailand;
Foreign wills or the execution of a foreign will or division of the foreigner's assets in Thailand according to the laws of the foreigner's home-country is possible. In this case there are 2 options;
- the death certificate and official foreign legal document or court order by which an executor is appointed is certified and translated and used to wind up the Thai part of the foreigner's estate
- the foreigner's will is submitted to a Thai Court and an executor is appointed in a Thai court procedure. This is a costly and time consuming procedure.
Also the execution of a Thai will made by a foreigner in Thailand is subject to a legal procedure and appointment of a executor, however, a Thai last will may be easier to enforce in Thailand and will save on lawyer fees. A Thai will can have a limited jurisdiction clause (i.e. can apply only on assets located in the Kingdom of Thailand).
Inheritance of a Condominium in Thailand:
may be easier to enforce in Thailand and will save on lawyer fees. A Thai will can have a limited jurisdiction clause (i.e. can apply only on assets located in the Kingdom of Thailand).Inheritance of a Condominium in Thailand:
Any foreigner who inherits a condominium in Thailand either as statutory heir or inheritor under will shall automatically have ownership over such unit. However, it is required by law (section 19 of the Condominium Act ) that the unit shall be disposed of within 1 year of possession if the foreigner does not qualify for ownership under section 19 of the Condominium Act . The fact that the foreigner inherited the condominium does not qualify him for registration of ownership. If the foreigner unqualified for ownership fails to dispose of the unit within one year, the Director-General of Land Department shall have power to sell it on the foreigner's behalf. We can help if you have inherited a condominium in Thailand or if a will (foreign or Thai) has to be executed in Thailand. Visit our condominium service page.
Inheritance of land:
A foreigner cannot acquire land in Thailand as an inheritor under will. Under the Land Code Act land cannot be willed to a foreigner. (this would be void) A foreigner may inherit land as a statutory heir under the section 93 of the Land Code Act (e.g. a foreigner may inherit land from a Thai national who he is legally married to). In this case the land may be acquired upon permission of the Minister of Interior. There are currently no laws, rules or regulations for the Minister to allow ownership and in practice the foreigner who inherits land as a statutory heir must dispose of the land within period not less than 6 months and up to 1 year. If the foreigner fails to dispose of the land the Director-General of the Land Department is authorized to dispose of the land and retain a fee of 5% of the sale price before any deductions or taxes.
either as statutory heir or inheritor under will shall automatically have ownership over such unit. However, it is required by law (section 19 of the Condominium Act ) that the unit shall be disposed of within 1 year of possession if the foreigner does not qualify for ownership under section 19 of the Condominium Act . The fact that the foreigner inherited the condominium does not qualify him for registration of ownership. If the foreigner unqualified for ownership fails to dispose of the unit within one year, the Director-General of Land Department shall have power to sell it on the foreigner's behalf. We can help if you have inherited a condominium in Thailand or if a will (foreign or Thai) has to be executed in Thailand. Visit our condominium service page. Inheritance of land:
A foreigner cannot acquire land in Thailand as an inheritor under will. Under the Land Code Act land cannot be willed to a foreigner. (this would be void) A foreigner may inherit land as a statutory heir under the section 93 of the Land Code Act (e.g. a foreigner may inherit land from a Thai national who he is legally married to). In this case the land may be acquired upon permission of the Minister of Interior. There are currently no laws, rules or regulations for the Minister to allow ownership and in practice the foreigner who inherits land as a statutory heir must dispose of the land within period not less than 6 months and up to 1 year. If the foreigner fails to dispose of the land the Director-General of the Land Department is authorized to dispose of the land and retain a fee of 5% of the sale price before any deductions or taxes.
Inheritance of leasehold properties:
Succession of lease rights in Thailand is a tricky subject as lease (hire of property) under Thai law is a personal right and the general principle of Thai law is that the lease is terminated upon death of the lessee (according to Supreme Court the lessee is the essence of the lease agreement, therefore, should the lessee die, the lease contract will be terminated and the lease rights will not transfer to the heirs of the lessee).
In a correctly drafted and structured lease or hire of property this can be prevented and remaining term can be inherited by the heirs of the lessee. Succession of the lessee’s rights must be agreed upon and anticipated in the lease structure. The lease structure needs to include the necessary clauses and protection. The remaining term and lease term will in principle not automatically transfer to the heirs and the heirs must be registered as the new lessee. The heirs have the right to claim performance directly from the lessor (section 374 Civil and Commercial Code). It is possible to including co-lessees in the lease agreement, who can each independently act as the lessee or hirer in the event of death of one of the lessees. Ownership over a house, separate from the land, can be transferred to the heirs separately at the local land office. In case of separate ownership over the house and a land lease a Thailand right of superficies offers additional protection. A house in Thailand separate from the land can be inherited by foreigners can be inherited without restrictions.
Succession of lease rights in Thailand is a tricky subject as lease (hire of property) under Thai law is a personal right and the general principle of Thai law is that the lease is terminated upon death of the lessee (according to Supreme Court the lessee is the essence of the lease agreement
, therefore, should the lessee die, the lease contract will be terminated and the lease rights will not transfer to the heirs of the lessee).In a correctly drafted and structured lease or hire of property this can be prevented and remaining term can be inherited by the heirs of the lessee. Succession of the lessee’s rights must be agreed upon and anticipated in the lease structure. The lease structure needs to include the necessary clauses and protection. The remaining term and lease term will in principle not automatically transfer to the heirs and the heirs must be registered as the new lessee. The heirs have the right to claim performance directly from the lessor (section 374 Civil and Commercial Code). It is possible to including co-lessees in the lease agreement
, who can each independently act as the lessee or hirer in the event of death of one of the lessees. Ownership over a house, separate from the land, can be transferred to the heirs separately at the local land office. In case of separate ownership over the house and a land lease a Thailand right of superficies offers additional protection. A house in Thailand separate from the land can be inherited by foreigners can be inherited without restrictions.Inheritance in case of controlling shares in a company:
More complicated is the situation if the foreigner is a shareholder and managing director in a company that owns a property or runs a business. Controlling shares and voting rights do not automatically pass on to the heirs of the managing director. Section 1132 CCC says; 'In the event of death or bankruptcy of any shareholder another person becomes entitled to a share, the company shall, on surrender of the share certificate when possible, and on proper evidence produced, register such other person as a shareholder'. Who is allowed to sign on behalf of the company in this case? The foreigner’s controlling shares in the company must transferred at the Ministry of Commerce and at that stage the foreigner’s heirs have lost any control in the company and it’s assets. It is possible to anticipate on this situation.
The person making a will in Thailand must be at least 15 years of age.
We can assist you in drafting a Thai will. We ensure that your last will made in Thailand is valid and in compliance with Thai law. We can also help if a member of your family has died without making a will, if there are difficulties with the administration of an estate in Thailand, or if you have been appointed as an Executor and are experiencing problems.
made in Thailand is valid and in compliance with Thai law. We can also help if a member of your family has died without making a will, if there are difficulties with the administration of an estate in Thailand, or if you have been appointed as an Executor and are experiencing problems.Our service and prices for drafting of a professional last will and testament in Thai and English specifically for assets in Thailand:
| Last will and testament online - our price 4,800 THB (general will) |
Traditional Lawyer Service - Pricing from 5,600 THB
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Our traditional lawyer service includes witnessing the signing of the will by the lawyer who drafted it. A will is something you know you have to deal with but you don't really want to. Our law online 'last will and testament' service is fast, easy and hassle free.
and testament' service is fast, easy and hassle free.Contact:
- Click here for our contact details and quick contact form. Fill in the contact form we will try to respond as soon as we can.
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