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Effective estate planning in Thailand for expats is given a look. The taxes in the country requires an understanding of the taxes and fees that attach to the transfer of wealth on death. We will start with Section 30 of the Thai revenue code. The Section imposes an inheritance tax on the transfers to the deceased persons estate. In addition there is court fees as well as administration fees in the probate proceedings. See the full article on probate in Thailand for more information.
Tax Liability and Tax Base
The Inheritance tax as you can read the Inheritance Act on this website. These taxes arises on the net value of assets passing to beneficiaries. This after the deduction of debts, funeral expenses as well as the administration costs. The taxes in Thailand is assessed on each beneficiary’s “portion” of the estate. There are limits to this however. Look also at the living will Thailand on here. This as well as the making a will in Thailand article on here.
Taxpayer
There is a personal exemption per taxpayer. When you exceed this limit the taxes become due. The exemption is explained below.
Tax Base
The tax base in this instance is where the beneficiary gets a pro-rata share of the estate after the deduction of debts and expenses from the estate.
Personal Exemption Thresholds
Lineal Ascendants/Descendants & Spouses: Exempt on the first THB 100,000 of the net inheritance received.
Other Heirs (Collateral Relatives, Non‑Relatives): Exempt on the first THB 10,000 of net inheritance received.
Tax Rates
Example: If a child receives THB 5 million net, the first THB 100,000 is exempt, and the remaining THB 4.9 million is taxed at 5%, resulting in THB 245,000 tax due.
Thailand’s inheritance tax regime is relatively modest. However thoughtful planning can further reduce liabilities and administrative burdens.
Lifetime Gifts
Annual Exclusions
Gifts to lineal descendants or spouses up to THB 10,000 per beneficiary per year can be exempt under certain allowances.
Advantages
You will see that removing assets from the estate. That this reduces probate value and inheritance tax due. Likewise each donee utilizes a fresh THB 100,000 exemption when they eventually inherit.
Risks
Note that any gifts must be bona fide. Likewise sham transfers can be unwound by creditors or the court if made to defeat legitimate claims.
Joint Ownership Structures Joint Tenancy with Rights of Survivorship
Real estate or bank accounts held jointly pass automatically to the survivor without probate.Caveat
Surviving joint owners may still owe inheritance tax on their “gifted” share exceeding personal exemption; and creditors could reach jointly held assets.
Testamentary Trust-Like Arrangements
Private Agreement with Guardianship Clauses
Although Thailand lacks formal trusts for personal estates, a will can appoint guardians and specify how minor heirs’ shares are managed—reducing court supervision.
Offshore Trusts
Some high-net‑worth individuals establish overseas trusts holding foreign‑registered assets; only Thai‑situated assets enter Thai probate.
Considerations
Thailand does not recognize foreign trust structures for Thai‑situated property; assets must be effectively segregated pre‑death.
Life Insurance Policies Beneficiary Designations
Life insurance proceeds paid directly to named beneficiaries bypass probate and inherit tax‑free up to certain limits, depending on policy classification.
Estate Liquidity
You can also use insurance to cover taxes and debts. Thus you will be preventing forced sale of estate assets.
Regular Will Reviews
You need to update the asset lists Firstly this will ensure probate filings accuracy. Thus reflect current holdings, avoiding undervaluation penalties.
Reallocating Assets
There are periodic redrafting in response to new acquisitions, marriages, or divorces.
Land Ownership Restrictions Non‑nationals Prohibited
Thai law which falls under the Land Code, Section 96. This law generally prohibits foreigners from owning land in their own name. There may be limited exceptions (e.g., BOI‑promoted projects, leaseholds).
Typical Structures
1. Long‑Term Lease: Foreigners may lease land in Thailand for up to 30 years. This is renewable twice. Likewise with lease agreements you should expressly ensure that the survivor after the lessee’s death is not revoked.
2. Thai‑Owned Holding Company: Foreign investors sometimes hold land via a Thai majority‑owned company. Corporate shares pass under Thai company law, not probate; but share transfers may trigger stamp duty and capital gains tax.
3. Condominium Ownership: Foreigners may outright own units up to 49% of a condo project’s floor area. Title passes on the Land Office registration at the time of death. This is subject to probate if held in the decedent’s name.
Structuring Real‑Estate Estates Lease Assignment Clauses
Draft leases allowing automatic assignment to heirs or nominated beneficiaries, with minimal landlord consent required.
Incorporate Thai Will Registration
Even if the property is leasehold, registering the foreigner’s Thai‑language will at the Land Office ensures the designated heir can register the assignment smoothly.
Governing Principles
Private International Law
Thailand’s Civil and Commercial Code allows recognition of a foreign will if:
1. It is valid under the law of the place where it was executed; and
2. It does not contravene Thai public order (e.g., attempts to bequeath land in violation of the Land Code).
Formal Requirements
1. Notarization and Legalization
You will need to ensure that any foreign wills are notarized and legalized (or apostilled) in the country of execution.
Likewise ensure that a sworn translation by a licensed translator is required for court proceedings.
3. Registration Recommendation
While not mandatory. Registering the foreign will at the Consular Section of the Thai Ministry of Foreign Affairs. This or at a Thai embassy or consulate can expedite recognition.
Potential Pitfalls
Language Ambiguities
• There could be translation errors which lead to contested interpretations.
• In addition there could be a conflicting Thai Will
• There could be a later Thai‑language will may unintentionally revoke or contradict the foreign will.
• Public Order Concerns
The provisions circumventing reserved portions for Thai statutory heirs. These may be struck down on public policy grounds.
Dual‑Will Strategy
Thai‑Language Will
Firstly you want to covers the Thai‑situated assets. This could be real estate, bank accounts in Thailand or Thai company shares. Likewise ensure that these are drafted in compliance with Thai formalities.
Foreign‑Language Will
The foreign language will governs any foreign‑situated assets. These could be foreign bank accounts, overseas real estate or investments. Likewise validated under home‑country law, with appropriate legalization and translation for Thai court recognition.
Coordinating Provisions
Non‑Contradictory Dispositions. Each is will should expressly state it governs only assets located in its jurisdiction.
Cross‑References
You will need to include “pour‑over” clauses. This directing that residual assets not covered by one will are subject to the other will’s terms.
Consistent Beneficiary Designations
Firstly you will need to use identical definitions of key beneficiaries. These could be the spouse, children or charities to reduce ambiguity.
• Likewise always use local advisors
• Seek the services of a Thai lawyer
• In addition ensure that the Thai will complies with formal execution and registration requirements.
• Seek foreign counsel where needed.
They will confirm that the foreign will is valid. Likewise that the tax implications in the home country, and international estate are coordinated.
Tax Advisor
The tax advisor is there to coordinate the inheritance, estate, and gift tax considerations. This is across jurisdictions to minimize double taxation (where treaties exist) and leverage available credits.
Intestate Succession Rules
When a person dies without leaving a valid will in Thailand, the Civil and Commercial Code prescribes a rigid regime of heirship to ensure orderly distribution.
Order of Heirs and Shares
Heirs are classified into four broad categories; one class must be entirely absent before inheritance passes to the next:
First Class: Spouse and Lineal Descendants Spouse + Children:
The estate is divided into shares equal to the number of children plus the spouse. Example: If there are two children, the estate is split into three equal parts. The one part to the spouse, one to each child. No Children: The spouse inherits half, and the other half goes to the decedent’s parents (second class), if alive.
Second Class: Parents and Lineal Ascendants
If no spouse or descendants survive, the estate goes equally to the decedent’s parents (or ascendants, if parents predeceased). Half‑siblings do not qualify here.
Third Class: Siblings and Half‑Siblings
If no closer heirs, whole and half‑siblings inherit equally. A half‑sibling shares equally with whole siblings.
Fourth Class: Collateral Relatives up to the Sixth Degree
Includes uncles, aunts, cousins, and more remote kinship. Shares are determined by degree of relation. Escheat to the StateIf no statutory heirs exist, the estate passes to the Crown.
Special Situations
1. Adopted Children: Firstly legally adopted children inherit as lineal descendants.
2. Likewise predeceased Heirs with Surviving Issue (Representation) If a child predeceases the decedent but leaves children (i.e., the decedent’s grandchildren). Those grandchildren inherit by representation. Likewise taking their parent’s share equally among themselves.
3. Half‑Blood vs. Whole‑Blood : Half‑siblings inherit equally with whole siblings at the third class level; beyond that (fourth class), half‑blood relatives do not inherit.
Disinheritance Statutory Reserved Portion
Thai law protects certain heirs with a reserved portion (มรดกสงวน):Lineal descendants (children, grandchildren) and lineal ascendants (parents, grandparents) each are entitled to at least one‑half of their statutory share.
A testator may only freely dispose of the non‑reserved portion (the other half).
Express Disinheritance
A testator may attempt to disinherit a reserved heir by expressly stating so in the will. However, the reserved heir can contest and claim their statutory share.
Disqualification
Heirs convicted of serious crimes against the decedent (e.g., homicide) are disqualified from inheriting under Sections 1642–1644 of the CCC.
The information contained in our website is for general information purposes only and does not constitute legal advices. For further information, please contact us.
You will note that you can live in Thailand on the 5 year elite visa Thailand. This is the well known Thailand elite residency visa. Likewise if you are looking at Thai permanent residency then speak to us as well. We are able to assist you. Likewise in Thailand you might also want to speak to us about Thailand hemp laws and the changes coming as well as inheritance law in Thailand.
