A foreigner who owns property in Thailand will need to make a Thai Will and understand succession law. This is important because a properly drafted Will can save heirs time and money.
Succession involves distributing inherited assets and estates among the testator’s heirs and devisees. It can be done either through a will or statutory succession.
Drafting a Thai Will
A Thai will is a legal document that specifies how you would like your assets and property to be distributed after your death. It can also provide instructions on funeral arrangements and healthcare directives. In Thailand, a will must be drafted in accordance with the Civil and Commercial Code. It is advisable to have your will drafted with the help of a legal professional to ensure that it meets the required legal standards.
The process of drafting a Thai will involves several key steps. First, you need to gather all your assets and identify how you want them to be distributed. You must also name your beneficiaries and appoint an executor to manage the estate. The will should be written in clear and precise language to avoid ambiguity. It should be signed by the testator in the presence of witnesses. Having the signatures notarized is also a good idea. Then, you must register the will with the local Amphur or district office.
When making a Thai will, it is important to include all your local assets, such as real estate, investments, cash in the bank, and quoted shares. The will should also include a list of “bequests,” which are specific gifts. You should also specify the name and address of a trusted person who can take care of your affairs in Thailand after your death.
Inheritance law in Thailand
A person’s assets and possessions are inherited upon his death by his statutory heirs. These include descendants; parents; brothers and sisters, including half-brothers and half-sisters; grandparents; and uncles and aunties. However, the heirs can lose their right to inherit if they divert or conceal property that exceeds their share.
The law on inheritance in Thailand is complex. For instance, a will can be contested on grounds of undue influence or lack of capacity. This makes it important for a testator to have a clear will and work with a lawyer who is familiar with the Thai legal system.
An executor is the person who manages a deceased person’s estate and distributes his assets to his heirs. An executor can be appointed either through the provisions of a will or by the statutory heirs. Heirs can also file a petition to discharge an executor for negligence or misconduct.
An experienced lawyer can help a client draft a legally sound will and navigate the probate process. He can also provide guidance on how to structure an estate to avoid conflicts between heirs. For expatriates with assets in multiple countries, he can help ensure that their estate plan complies with the laws of each country. In addition, he can recommend other practices that will help them protect their estate and reduce the risk of litigation.
Inheritance tax in Thailand
Achieving a smooth transfer of wealth for heirs is a complex process that involves navigating societal values and legal frameworks. An experienced lawyer can help you draft a will, address property restrictions, and resolve disputes. They can also advise on tax planning strategies. For example, trusts can be an effective way to secure legacy while avoiding taxes.
Under Thai law, inheritances are subject to taxes. They are taxable at a rate of 5% if the beneficiary is a descendant or parent, and 10% for all other beneficiaries. The tax is levied on the inherited value of assets including immovable property, securities under the law on shares and the stock market, deposits or other similar funds that the testator has the right to withdraw or claim from financial institutions or individuals holding such funds, registered vehicles and other financial assets prescribed by royal decrees.
Heirs who receive inheritances of 100 million baht or more are required to file an Inheritance Tax Return. Inherited land is taxable, but foreigners are not required to pay this tax if they qualify as a “lawful spouse” under the Marriage Act or have registered their marriage abroad. However, they must sell inherited land within one year or lose it to the government. This requirement can be costly for many expatriates, so it’s important to consult an expert in this area.
Making a Will in Thailand
Making a will in Thailand is a necessary step for any person owning property in the country. It allows the testator to determine how their assets will be distributed after death. It also allows them to choose heirs, set out funeral preferences, and assign executors. However, the process can be complicated, and it is advisable to seek the advice of a lawyer to ensure that the will meets legal requirements.
The primary law governing the making, execution, revocation, and interpretation of Thai wills is the Civil and Commercial Code. This comprehensive legislation defines the requirements for a will, outlines the rights of heirs and beneficiaries, and establishes the duties of executors.
A will must be in writing to be valid in Thailand. It must be dated and signed by the testator. It must also be witnessed by two people who sign their names to certify the testator’s signature. The will should also be registered with the local Amphur (District Office).
The drafting of a will is an important part of estate planning, and it can help avoid family disputes after a person’s death. A well-drafted will can clarify the testator’s wishes and help avoid disputes. It can also reduce the time and cost of settling an estate. The best way to make a will in Thailand is to consult a qualified attorney or estate planning professional.
