Financial planning in Thailand - Are your financial affairs in order?

Estate Planning for Foreigners in Thailand

By Joe Lynch, Accredited Australian Specialist Family Lawyer Lanna Lawyers, Chiang Mai, Thailand Email: llannalawyers@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 on death. Estate planning typically attempts to eliminate uncertainties in the administration of your estate and maximise the value of the estate by reducing the impact of taxes and other imposts.

Estate planning involves review of your Will, establishment or amendment of trusts (including testamentary trusts and the review of beneficiary designations and powers of appointment), reviewing property ownership (including the consideration of the effect of joint tenancies with right of survivorship or tenancies in common), gifts and the effect of them, and powers of attorney, specifically the enduring financial powers of attorney and the enduring medical powers of attorney or guardianship appointments.

You should be aware that the establishment of trusts either during one’s lifetime or by Will is not permitted under Thai law.

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 also 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 and vice versa.

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 a Power 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 you should ensure 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 Will 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 common sense.

Lanna Lawyers                                           

Company Limited

99/107 Soi 10 Laddarom Elegance Payap (Q House)

Middle Ring Road

T. San Klang A. San Kamphaeng Chiang Mai 50130 Thailand

Phone:              +66(0)849047797

Email:               lannalawyers@gmail.com

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