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This is going to be an overview of the laws in Thailand which govern estate administration which falls under the Civil and Commercial Code. There is also a small section on the inheritance tax laws in Thailand as well as some regional insight to estate administration as well as drafting of your last will and testament. We have other article on here which covers the regional insights for wills and well as prenuptial agreements as well. You can see the last will in Pattaya and well as the last will in Phuket as an example.
The Civil and Commercial Code: Governing Estate Matters
As stated before the Thai Civil and Commercial Code is the law which governs the laws related to inheritance and wills. These are the key sections of the CCC which are most relevant:
Section 1599–1600: This covers the general principles of inheritance.
Section 1618–1635: These are the rules regarding the drafting and validity of a will.
Section 1636–1673: Finally the regulations for estate administration and distribution.
You can find a brief overview of these on this website on the links above. Likewise it will also cover what happens where there is no last will and testament when the person dies.
Validity of a Will in Thailand
There is a legal criteria for drafting a will in Thailand. These three are covered in the Civil and Commercial Code. Lets cover these three in the Civil and Commercial Code
Written Will: Likewise this is covered in Section 1656. The will must be made in writing and dated, and signed by the testator in the presence of at least two witnesses.
Handwritten Will: Section 1657 allows for holographic wills, which must be entirely handwritten by the testator, dated, and signed without requiring witnesses.
Public Will: Section 1658 details the process of creating a will with the assistance of a government officer.
Distribution of Assets Without a Will
If you die in Thailand without a will which is common in Pattaya. Then your estate will be divided as follows according to Thai law. Your estate will then be divided by heirs in hierarchical order.
• Spouse
• Descendants (children, grandchildren)
• Parents
• Siblings of full blood
• Siblings of half-blood
• Grandparents
• Aunts and uncles
Your Thai wife if you have one will take most of the estate. Should you not have a Thai wife then your children will inherit your estate. This is important when you don’t have a Thai wife and your children now still live in the US, UK or Australia. This will make the estate more difficult to windup. Note that the legal systems are not the same.
Inheritance Tax in Thailand
You will note that Thailand imposes an inheritance tax but only on substantial estates:
This law as introduced in 2015 as the Inheritance Tax Act B.E. 2558 (2015). Note however as explained above that this only become applicable to estates where the inheritance exceeds 100 million THB for direct descendants or parents (taxed at 5%) and other beneficiaries (taxed at 10%).Likewise the assets are subject to tax include property, deposits, shares, bonds, and other financial instruments. Lastly proper and effective planning and a well-drafted will can minimize disputes and ensure compliance with any tax obligations. Note the drafting of an international prenuptial agreement as well.
Legal and Cultural Nuances
For expat and other foreigners. Many who reside in cities such as Bangkok, Pattaya, Phuket, Hua Hin, and Isaan. They do face some very unique challenges, including:
• Thai to English language barriers requiring accurate translations.
• The regional differences in legal expertise and access to experienced lawyers.
• Local customs affecting the disposition of property, especially for mixed families.
Choosing the Right Executor
We note for the CCC that the executor of the will plays a critical role in estate administration. Sections 1646–1653 of the CCC specify the duties of an executor, which include:
• Collecting and preserving the deceased’s assets.
• Paying off debts and liabilities.
• Distributing the estate according to the will or laws of intestacy.
Property and Foreign Ownership
You will not that the article that we wrote on can a foreigner own land in Thailand. That foreign ownership of land in Thailand is highly restricted. Now should you as a foreigner inherit land. You must sell the land within one year or transfer it to an eligible Thai person or entity.
Importance of Translation
For expats and other foreigners who are non-Thai speaker. Having the will professionally translated into Thai is crucial to avoid misinterpretation. Certified translations are often required for legal recognition, especially in courts or government offices.
Bangkok
Bangkok has a mix of expats and it is the legal and administrative hub of Thailand. Bangkok offers access to the most experienced lawyers as well as public notaries. Likewise when drafting a will in Bangkok you can be sure that the will comply with Thai law and the laws of your home country. The legal fees however will be much higher.
Pattaya
Known for its expatriate community, Pattaya has many legal professionals familiar with foreign estate planning. Language translation services and English-speaking lawyers are readily available. Likewise Pattaya also has a number of Thai criminal lawyers as assault is common in Pattaya.
Phuket
As we know, Phuket has a high-value real estate market. Typically this requires a specialized legal advice for property succession. Likewise many expatriates in Phuket draft wills to safeguard their investments in their villas and condos. Lastly have a Thai criminal lawyer might also be good in the event of fraud.
Hua Hin
The city of Hua Hin is a well known a retirement destination for many foreigners. Even the wealthy Thai’s tend to invest in property in Hua Hin. In the city we can see many expat couples compared to Pattaya. Their last will and testament tends to be addressing pensions, savings, as well as their locally owned assets. Additionally the estate planning in Hua Hin concentrate on long-term care and medical directives.
Isaan
Likewise in In rural Isaan. It will be mainly local traditions which very well may influence the distribution of assets. Likewise access to professional legal advice can be limited. The basic wills can still be drafted to account for unique family dynamics as well as land use agreements. See also the issues with other issues such as usufruct Thailand as well as right of superficies.
Firstly you will need to consult a lawyer in Thailand who can view your estate with an international view on all your assets. Likewise also see the Thai inheritance law as has been explained on here. Lastly speak to a lawyer who has extensive experience in working with expatriates. They will be able to assist you with making a will in Thailand.
Secondly you will need to look at what you type of will you are looking for. This can be a written will, public will as well as a handwritten will. Likewise also see the living will which people in Pattaya prefer. Talk to us about your living will in Pattaya if you are interested. Everyone has their own preferences when it comes to the type of last will that they are looking at.
Thirdly you will need a list of your assets when you speak to your lawyer. You must be able to identify the assets that you own. This must be clearly done as well as who you wish to leave these assets to. Note that this could be local as well as foreign assets. Find a experienced lawyer or expat law firm that can do this correctly. So don’t forget your asset list and beneficiaries.
Fourthly You will need to choose an executor of you estate. Likewise you will need to ensure the executor is trustworthy, capable, and familiar with Thai laws.
Finally you will need to ensure that you have a translated will and legalized documents if you so wish. Likewise you will need to ensure that the translations are accurate. Your will does not need to be dual language however some do prefer this manner. Lastly store your will in a safe place where it can be found.
Step 1: Notify the Court of the Testator’s Death
This si the first step to start the process when winding up an estate in Thailand. You will need the ID documents of the person. This will be your passport. Likewise you will need to have a death certificate issued in Thailand if the person died here. Lastly also hand in the last will and testament if the person had one.
Filing the Petition
The executor in the estate will normally hand in the documents to the court. They will need to be able to identify the heirs in the will as well as an initial inventory of the deceased’s assets and liabilities. Note that if the person died in Bangkok, Pattaya, Phuket, Hua Hin, or Isaan, the local court in that area will handle the probate.
Court Hearing
The courts will then hear the petition and schedule a hearing. At this hearing they will look at a few things. These to verify the validity of the will (if applicable). Likewise also confirm the legal standing of the executor or administrator. Finally they will also address any disputes among heirs or challenges to the will. The court will then appoint the executor or administrator.
Step 2: Submit the Will and Related Documents for Probate
Probate is the legal process by which a court validates the authenticity of a will and grants the executor the power to manage the estate. If no will exists, the court appoints an administrator to distribute the assets.
Validating the Will
This is covered by Sections 1656–1664 of the Civil and Commercial Code. You can see the article that we wrote on validating the will on here are well. The will must be properly signed, dated, and witnessed. Likewise a holographic will, it must be entirely handwritten by the testator.Likewise those wills which are in a foreign language. Then a certified Thai translation must accompany the original document. This occurs in many of the cities with large expat populations. The original can be in French or any other language with such diverse populations groups. Note when there is no will then in fall under Section 1629 of the Civil and Commercial Code.
Step 3: Resolve Tax Obligations, Including Inheritance Tax
The inheritance tax in Thailand is limited to large estates which over 100 million THB or more. Most Thai people will not be liable for this. Should there be a tax liability then the following will be taxed. The tax rates would be 5% for direct descendants (e.g., children) or parents. Likewise 10% for other beneficiaries (e.g., siblings or unrelated individuals).
Step 4: Distribute Assets According to the Will or Intestacy Laws
Finally the assets need to be distributed. These are including transferring property titles to named beneficiaries. Likewise disbursing funds from bank accounts.Finally allocating personal belongings, such as jewelry, vehicles, or artwork.
Always take legal advice from a Thai law firm who has the experience in estate administration as well as drafting you will. The estate administration notifying the court, obtaining probate, resolving tax obligations, and distributing assets. Whether the estate includes beachfront property in Phuket, a condo in Pattaya, or a farm in Isaan, following these practical steps helps ensure that the deceased’s wishes are honored.
