Repatriating funds

[Delight]

Can an inheritor of a free hold condo immediately repatriate   the recent inward  funds as soon as the FET is issued ?

Edited August 10, 2018 by Delight

[simoh1490]

Your question doesn't make much sense, perhaps ask it again a different way. An FET is issued to a person who imports funds, you seem to be asking whether the heir to an estate can re-export those funds although the FET would have been issued before the deceased died!

[observer90210]

who delivers the FET if the funds are directly sent to the developpers account ?

[Delight]

31 minutes ago, simoh1490 said:

Your question doesn't make much sense, perhaps ask it again a different way. An FET is issued to a person who imports funds, you seem to be asking whether the heir to an estate can re-export those funds although the FET would have been issued before the deceased died!

 Is this better?

An inheritor inherits .  They are beneficiaries of a dead persons  estate-main asset a condo. They can only have their name on the condominium title deed when 1 )The court has authorised it and 2) when they obtain a FET to satisfy the land office.

With both in place can the imported funds (necessary to qualify for the FET) be repatriated straight away -or is there some time delay

 

Edited August 10, 2018 by Delight

[Delight]

2 minutes ago, observer90210 said:

who delivers the FET if the funds are directly sent to the developpers account ?

Who mentioned developer -not me. The condo is mine in a foreign name

[KittenKong]

7 hours ago, Delight said:

An inheritor inherits .  They are beneficiaries of a dead persons  estate-main asset a condo. They can only have their name on the condominium title deed when 1 )The court has authorised it and 2) when they obtain a FET to satisfy the land office.

With both in place can the imported funds (necessary to qualify for the FET) be repatriated straight away -or is there some time delay

There is no time delay that I am aware of. There would be no reason for a time delay anyway.

 

Your bank should be able to arrange a quick "bed and breakfast" forex transaction at minimal cost.

[KittenKong]

7 hours ago, observer90210 said:

who delivers the FET if the funds are directly sent to the developpers account ?

This is a good question and is one reason why I would never transfer money from abroad directly to any Thai account apart from my own. I dont like relying on other people, especially here.

[simoh1490]

7 hours ago, Delight said:

 Is this better?

An inheritor inherits .  They are beneficiaries of a dead persons  estate-main asset a condo. They can only have their name on the condominium title deed when 1 )The court has authorised it and 2) when they obtain a FET to satisfy the land office.

With both in place can the imported funds (necessary to qualify for the FET) be repatriated straight away -or is there some time delay

 

I think poster KK has the right answer, have the bank B&B the funds to generate the required FET.

[Delight]

1 hour ago, KittenKong said:

There is no time delay that I am aware of. There would be no reason for a time delay anyway.

 

Your bank should be able to arrange a quick "bed and breakfast" forex transaction at minimal cost.

Maybe I have still not explained the circumstances.

 

It will not be my bank. Why -Because I will be dead.

The money inward will arrive at a bank account set up by the beneficiaries of my estate-post my demise. That bank will issue the FET

The beneficiaries -who will have to borrow the money in the UK(assuming that that is possible) will want to settle the loan ASAP.

Hence my Q about process time.

 

[moontang]

99.9% of foreigners do not have mortgages on their Thai condos....thus, the puzzlement.  Make the mortgage company a beneficiary of your life insurance, for the payoff.  Or, make the beneficiary a joint owner with rights of survivorship....might be more straightforward.  But, a good question would be how does the Land Office handle FET for the very few with mortgages.

[KittenKong]

35 minutes ago, Delight said:

It will not be my bank. Why -Because I will be dead.

The money inward will arrive at a bank account set up by the beneficiaries of my estate-post my demise. That bank will issue the FET

The beneficiaries -who will have to borrow the money in the UK(assuming that that is possible) will want to settle the loan ASAP.

Hence my Q about process time.

Well, no one can accuse you of not being prepared.

 

I dont see why your inheritors should have any trouble beyond that of borrowing the money in the UK.

 

Obviously it would be easier for them if they had a bank account here before starting, so it might be worth considering opening a savings account in their name with a balance of a couple of thousand Baht with a major Thai bank, and you could keep the account active with a yearly 100B deposit. Once they have that account there is nothing stopping them/you from asking the manager some hypothetical questions that might be relevant in the future.

[moontang]

it is highly unlikely they will be able to use the condo as collateral for the loan, so interest could be well over 10%....I noticed one of the few advertisers of mortgages for foreigners requires life insurance.  That would be the most sensible way to handle it (if you cant just pay it off).  Sounds like a big burden on them, if they also have to borrow, and they could be in for a rough ride if they don't know the market here..as well as several trips to BKK.  Depends on your equity...90% LTV you would be better off letting the bank have it.

[Delight]

54 minutes ago, moontang said:

it is highly unlikely they will be able to use the condo as collateral for the loan, so interest could be well over 10%....I noticed one of the few advertisers of mortgages for foreigners requires life insurance.  That would be the most sensible way to handle it (if you cant just pay it off).  Sounds like a big burden on them, if they also have to borrow, and they could be in for a rough ride if they don't know the market here..as well as several trips to BKK.  Depends on your equity...90% LTV you would be better off letting the bank have it.

Perhaps you could re read my comments

The loan will be organised in the UK with   UK banks.

The hope is that the loan will be short term. My condo as collateral is not part of the plan.

My beneficaies plan to use my condo(which will be their condo) stricly for holiday purposes.

The maintenance costs will be shared.

The beneficiaries will consist of my UK based family -plus others.

This is the current outline proposal.

Their  intention is in fact to use UK  overdraft facilities to finance the project-i.e finance the acquisition of the FET

Currently the maintenance charges are 45,000 Baht per annum

Tomuch for a single individual

However if this cost is shared among say 12 people then the cost per person for a one month stay in Thailand becomes  very cheap

 

Edited August 11, 2018 by Delight

[moontang]

Nothing to re-read..just another person doing things the hard way.  You are asking for tons of potential legal issues...including ownership by a foreign trust, that would need to be registered here, or select one of them to actually take ownership and decide, who gets it for high season, who maintains it during low season, who collects and distributes maintenance monies and how much are they paid to do so...and what if that person dies.  12 owners?  all foreigners?  Dear sir:  your uncle just died and left you 1/12 of a condo in a foreign country that is 1/3 paid for...please send me 10,000 GBP to close the deal....seen better offers from Nigeria.

 

"Repatriating funds"?  Perhaps, you are the one, who should re-read what you attempted to write.  Your situation has zero to do with repatriating funds.

Edited August 11, 2018 by moontang

[Delight]

2 hours ago, moontang said:

Nothing to re-read..just another person doing things the hard way.  You are asking for tons of potential legal issues...including ownership by a foreign trust, that would need to be registered here, or select one of them to actually take ownership and decide, who gets it for high season, who maintains it during low season, who collects and distributes maintenance monies and how much are they paid to do so...and what if that person dies.  12 owners?  all foreigners?  Dear sir:  your uncle just died and left you 1/12 of a condo in a foreign country that is 1/3 paid for...please send me 10,000 GBP to close the deal....seen better offers from Nigeria.

 

"Repatriating funds"?  Perhaps, you are the one, who should re-read what you attempted to write.  Your situation has zero to do with repatriating funds.

 Just to explain further . This initative comes from my  neice -not me. She will organise everything.I see her as a very capable female

Any way this  is not your business. Please keep your comments to yourself-It is not your business.

If you cannot answer my Q then do not add to this request for info.

 

Edited August 11, 2018 by Delight

[ballbreaker]

I agree with KK on his response but the only way to know for sure is talk with bank to see if any time limit exist.  I would be hesitant to borrow money knowing how Thailand is when it comes to getting correct answers unless you can get guarantee from Thai Bank first.

 

I found Bangkok Bank Silom main branch in Bangkok good to deal with when I bought my condo.  They willing accepted copies of transfer orders for incoming transfers that went back 5-6 years to issue FET.

 

Best of luck and keep us posted because it's a great question that needs answer.

[KittenKong]

20 hours ago, moontang said:

You are asking for tons of potential legal issues...including ownership by a foreign trust, that would need to be registered here, or select one of them to actually take ownership and decide, who gets it for high season, who maintains it during low season, who collects and distributes maintenance monies and how much are they paid to do so...and what if that person dies.  12 owners?  all foreigners?  Dear sir:  your uncle just died and left you 1/12 of a condo in a foreign country that is 1/3 paid for...

Yes, an arrangement with multiple foreign owners seems like a massive can of worms to me. And one that I would not care to open. Hard to see how it could ever work.

 

That said, one way around this issue, given the possibility of there being many foreign owners, would be for those people to form a Thai company and for the company to buy the condo. No FET certificate needed at all, and easy enough for each party to own one twelfth (or whatever) of the company and its asset, and eventually dispose of their share if they wish. This could even be done before the current owner dies, as with Thai property sales there is no requirement for any money to actually change hands (apart from the transfer taxes). So that would get round the UK loan question too. The current owner could lease back the property at a peppercorn rent for 30 years (30 years should see most of us out), or could arrange a lifetime usufruct on it.

 

Of course, there may be a downside in case of any clamping down on property ownership by companies with foreign shareholders and Thai nominees. And there would be annual company costs/taxes, and lawyer fees. And there may be a hit on the value of the actual condo if it passes from farang name to company name (though there are ways of mitigating that last one). But the upsides are definitely there also.

[Delight]

6 hours ago, KittenKong said:

Yes, an arrangement with multiple foreign owners seems like a massive can of worms to me. And one that I would not care to open. Hard to see how it could ever work.

 

That said, one way around this issue, given the possibility of there being many foreign owners, would be for those people to form a Thai company and for the company to buy the condo. No FET certificate needed at all, and easy enough for each party to own one twelfth (or whatever) of the company and its asset, and eventually dispose of their share if they wish. This could even be done before the current owner dies, as with Thai property sales there is no requirement for any money to actually change hands (apart from the transfer taxes). So that would get round the UK loan question too. The current owner could lease back the property at a peppercorn rent for 30 years (30 years should see most of us out), or could arrange a lifetime usufruct on it.

 

Of course, there may be a downside in case of any clamping down on property ownership by companies with foreign shareholders and Thai nominees. And there would be annual company costs/taxes, and lawyer fees. And there may be a hit on the value of the actual condo if it passes from farang name to company name (though there are ways of mitigating that last one). But the upsides are definitely there also.

 Your suggestions were the first ideas that I suggested to her

You list all the downsides-plus the benefits

She wishes-if possible-to avoid the downsides

Particularly the fact that the condo is downgraded commercially -harder to sell if the circumstances change.

Thanks for your input.

 

[janclaes47]

Oh, I thought the condo was sold, but probably you meant i figure oiut some other scenarios to get my money back from my unsellable condo.

 

You gonna fake your death now?