Drafting a Thai Last Will is crucially importent if you want to choose your heirs (“legatees”) and clearly outline your last wishes. If you do not draft your Last Will, Thai law determines who inherits your property.
It is highly recommended to write a Last Will & Testament in your own country and Thailand. Thinking about your death is not fun but you need to plan ahead for your property. Then things will be organized in the unfortunate event of your death. Your property in Thailand gains value as soon as you sign the contract and pay in installments. Therefore, even before the transfer of ownership, you will have assets to consider for your real estate plan.
Drafting a Thai Will for Properties in Thailand
The Trai Last Will & Testament will list your Thai assets such as property, bank accounts, vehicles and personal belongings. Generally, after the death of a foreigner in Thailand, civil servants ask their families for a copy of The Last Will & Testament or look for a deceased lawyer for this document. Drafting a last will in your own country to cover Thai assets can be problematic and cumbersome for the family as the document must be translated, notarized and approved by a government agency. Another will is recommended for Thai assets.
In the absence of Thai Last Will, the intestate’s assets should be divided in order of priority according to the ratio class determined by CCC Section 1629:
- descendants;
- parents;
- brothers and sisters of full blood;
- brothers and sisters of half blood;
- grandfathers and grandmothers;
- uncles and aunts.
Before the division of inheritance into the family, half of the inheritance known as Sin Somros belongs to the spouse, if any.
The rest is evenly divided accordingly. In the absence of a living relative or Thai will, the inheritance is handed over to the state. Therefore, it is highly recommended to create a Thai Last Will that covers all of Thailand’s assets and assets. For those who own land under a company on a freehold basis, their property after their death is simply not passed on to their heirs. Instead, it is transferred in the form of shares. In other words, your heir receives the shares of the company, not the actual property itself. This can involve complex legal mechanisms. Therefore, it is essential to organize the writing of Thai Last Will.
Leasehold and Your Last Will
It is worth noting that for those who have acquired a property in a rental structure, leasing is an individual right that has nothing to do with the property and basically ends when the tenant dies. Therefore, if you have a long-term renewable lease and have already paid the rent in advance, you should also make sure that the lease has an inheritance sub-clause that allows you to transfer the lease to the heir. But you still need to have a Thai will to show your clear intention to transfer those rights to your loved ones.
There are many things that can happen to your property if you do not know your legal rights in Thailand. Without specific precautions in advance, the entire process can be a very annoying web and in some cases very costly. One of the most important concerns in real estate acquisition is risk minimization and investment security. This is even more important when buying real estate outside your jurisdiction where communication can be a serious obstacle to your goals. Effective Thai will eliminates much of the risk. It is always wise to seek the advice of a reputable professional expert who cares about your interests and understands your needs.
It is aslo strongly recommended to insure your home (house or condo) in a reliable Thai insurance company. You can compare prices for Thai home insurance here.
FREQUENTLY ASKED QUESTIONS
Following the introduction of the Inheritance Tax Act in 2016, inheritance tax is now applied to inherited assets which exceed 100 million THB in value at a rate of 5% of the tax base for ascendants or descendants and 10% of the tax base for non ascendants or descendants. The tax is calculated with respect to the amount which exceeds 100 million THB.
The appointment of an executor can only be made by order of a Thai court. After the initial request to the court, a hearing is usually held approximately 60-120 days later to set the executor. It should be noted that the executor must physically witness this trial in order to submit evidence to the court. Usually, within 30 to 60 days of this trial, the court will issue a final order on the grounds that no other stakeholder has appealed.
The executor is a key figure in the Thai Last Will. Ideally he/she should live in Thailand as he is expected to attend Thai courts. His identity and role must be completely clear in the last will, and it is best to ensure that he understands his obligations in advance and are willing to carry out the obligations. Appointing a replacement executor is also a wise move.
Valid Last Wills can be written in Thai or English, but if they are written in English only, they must be translated into Thai before being submitted to the relevant authorities.
Thank you for the article. I’m going to buy a condo in Pattaya and I will draft a last Will for sure now. Can you recommend a Thai lawyer for drafting my Last Will?