A legal plan that complies with Thai inheritance law is the best way to ensure your wishes are respected after your death. This can also avoid family disputes and expedite the estate process.
A will paves the way for your loved ones to access your assets, reducing the chance of legal complications and disputes in a time of grief. It also simplifies the probate process, especially when some of your assets are in Thailand.
The objective of estate planning is to ensure that a person’s assets are properly transferred after death. It can involve the drafting of a will that meets the client’s wishes and complies with Thai law as well as setting up legal structures such as trusts and joint tenancies. In addition, it can also include Powers of Attorney (POA), Living Wills and healthcare directives.
For expats, the drafting of a Thailand-based will is particularly important as local laws regarding inheritance differ from those in their home countries. As such, it is essential for foreign nationals to secure expert legal advice when undertaking a comprehensive estate plan in Thailand.
In the absence of a will, heirs are determined according to statutory succession, which prioritizes direct descendants and spouses. In this case, the surviving spouse can take up to 2/3 of the deceased’s estate. If there are no statutory heirs, the remaining share is divided equally between classes 4, 5, and 6 of relatives – brothers and sisters of full blood, grandparents, aunts and uncles.
To minimize legal complications and avoid unintentional omissions, it is essential to compile a list of all Thai-based assets. This should include real estate, bank accounts, investments and other personal belongings. Keeping accurate and up-to-date records of these assets can simplify the probate process and help the executor manage the distribution process in accordance with the deceased’s will.
A Thai living will is a powerful tool for making end-of-life medical decisions in advance, so that the doctors can respect your wishes. It allows you to state in writing that you do not wish to be kept alive under certain circumstances and concentrate on comfort care instead. However, it does not support euthanasia or assisted suicide and is only applicable in the event that you are terminally ill.
A clear and valid Thai will also simplifies the probate process, saving your loved ones from undue stress and legal battles at a very difficult time. It also eliminates ambiguity, which can reduce family conflicts and disputes over inheritance.
In Thailand, there are a few recognized forms of wills that ensure legal validity. The most common is a written will signed by the testator and two witnesses. The testator must be of sound mind and sign voluntarily. It is important that the witnesses are not beneficiaries and do not have an interest in your estate, as this could be perceived as conflict of interest.
A will is a good idea for anyone, but it is particularly important for expatriates in Thailand. This is because, in the absence of a will, section 1629 of the Thai Civil and Commercial Code applies. This law provides that half of the community property must be inherited by the spouse and the remaining portion shared equally amongst the statutory heirs which include children, parents, and siblings.
When a person dies in Thailand their estate will be divided according to the provisions of their will or statutory inheritance laws (if there was no will). A Thai will gives significant freedom to specify how heirs and assets should be distributed. It is important that it be properly drawn up in order to avoid potential legal controversies.
Inheritance law in Thailand provides a complex system for the distribution of property upon death. A lawyer can assist with the process, which includes filing a petition for probate in court, verifying a will or drafting one, appointing an executor, taking inventory of assets, paying debts and distributing the estate to heirs. It can take from several months to over a year to resolve an estate.
It is possible for a foreigner to inherit land in Thailand, but they cannot register it as they are not citizens. The Director-General of the Land Department may authorize the disposal of inherited land within a period of up to one year for a fee of 5% of the sale price before taxes and other deductions.
Heirs residing abroad should consider making a separate Thai will. This will save time and money in the long run by avoiding translation, notarization and legalization hurdles that would otherwise be necessary to enforce a foreign last will. Having an explicit nomination of the “Executor” in their testament will also make things much easier.
Foreign investors with property in Thailand are subject to special considerations regarding inheritance law. If the deceased did not make a Thai will, their assets are allocated according to the country's laws on intestacy, which may not align with their home-country inheritance rules or the wishes of family members. This could cause conflicts and impose costly challenges on heirs.
A legal plan drafted by an attorney is the best way to avoid disputes and ensure that your wishes are respected after death. It is also essential for avoiding complicated legal proceedings and ensuring that your heirs are eligible to inherit under Thai law.
The probate process involves verifying the will, identifying and valuing assets, paying debts, and distributing the estate to heirs. This process can be lengthy and complicated, especially for foreigners.
A will can be written or oral, but it must be in writing and signed by the testator with two witnesses. It must also be dated, which helps to establish the testator's mental competency at the time of signing. In Thailand, there are several forms of trusts that can be used to reduce taxes on inheritance and protect assets from potential creditors. Giving to charity is also a tax-deductible activity in Thailand. If you have children, you can also open a trust account to save for their education or future needs.