Estate Planning in Thailand
By Joe
Lynch, Accredited Australian Family Law Specialist
Lanna
Lawyers, Chiang Mai, Thailand
Email: lynchlaw.net.au@gmail.com
“Estate planning is not difficult it's just common sense”
Estate planning is the process of anticipating and arranging
for the disposal of your estate. Estate planning typically attempts to
eliminate uncertainties over the administration or probate and maximise the
value of the estate by reducing taxes and other expenses. Guardians or Controllers of Property are often
appointed for infant children and beneficiaries who have an incapacity.
Estate planning often involves preparation of the will, establishment of trusts, beneficiary
designations, drafting powers of appointment, consideration of property joint ownership (joint tenancies with
rights of survivorship, tenancies in common where the deceased's interest passes in accordance with the by or in accordance with the rules of intestacy where the deceased dies without a will ), gifts, and
powers of attorney, specifically the enduring financial powers of attorney and
the enduring medical powers of attorney or guardianship appointment. You should be aware that the creation of
trusts both during one's lifetime or by will are not permitted under Thai law although usufructs (a trust by any other name) are.
Top 10 Estate Planning Tips for Foreigners Living in Thailand
1. Review
your existing estate planning strategies in light of advice from qualified
lawyers and accountants in your home country before acquiring assets or entering
into a relationship or marriage in Thailand.
2. Seek
professional legal advice as to the possibility of entering into a binding
prenuptial agreement or other binding financial agreement prior to entering
into a marriage or relationship in Thailand.
The protection available under prenuptial agreements in Thailand is very
limited and it may be more appropriate to enter into an agreement under the law
in your home company and excluding jurisdiction of the courts in Thailand. Each case is different and specialist advice
is crucial.
3. Review
your will in your home country upon the moving to Thailand and prior to
entering into any relationship or marriage in Thailand. Your will should be reviewed regularly on any
significant change in your circumstances.
Ensure that any new will made in your home country does not revoke your
Thai will.
4. If
you acquire assets in Thailand, even bank accounts or personal property, make a
will in Thailand dealing with your Thai assets only and which accurately reflects
your testamentary wishes in respect of those assets. You should ensure that your Thai will does
not revoke any will made in your home country and you should review your Thai
will on any significant change in your circumstances in Thailand.
5. Put
in place Powers of Attorney so as to allow both your Thai assets and your
foreign assets to be dealt with on your behalf in the event of illness,
incapacity or unavailability. Usually
this would involve separate Powers of Attorney in each country. Where possible the Powers of Attorney should
be enduring Powers of Attorney so as to permit your assets to be dealt with in
the event of your incapacity and, if possible, deal with the power to make
decisions concerning medical treatment decisions. Under the laws of some countries an enduring
Guardianship Appointment may be more appropriate.
6. If
you propose to acquire assets, typically real estate, in the name of your Thai
wife or partner take steps to ensure that you were are adequately protected by
use of a Thai limited company, usufruct interest, registered mortgage,
registered lease or other appropriate asset protection strategy. Seek professional legal advice as to an
appropriate strategy.
7. If
assets in Thailand, typically real estate, are to be held in the name of your
Thai wife or partner ensures that she has in place a valid will which protects
your position. In any event make sure
that you are fully aware of your entitlement, if any, under the laws of
inheritance in Thailand.
8. Obtain
professional advice in respect of any relevant Family Provision legislation
which is applicable in your home country and take any appropriate steps to
protect your estate against a claim which is not in accordance with your
testamentary wishes.
9. Ensure
that your relatives in Thailand are aware of your wishes as to burial,
cremation and funeral arrangements and ensure that adequate funds are available
to meet expenses.
10. Make
sure that copies of all relevant financial documents including your wills are
in the possession or control of those who should have access to them in the
event of your death.
Remember that estate planning is usually not difficult it's
just plain common sense.
Lanna Lawyers
provides a free phone consultation service to allow you to identify what estate
planning strategies should be put in place to meet your personal needs. We have access to professional lawyers
qualified to practice in most Western countries who can advise you as to the
relevant law in your particular home country.
See also
Making a Will in Thailand
Inheritance in Thailand
No comments:
Post a Comment