Does Thai law accept living revocable trust or only wills?

[drronnie]

A friend is interested in doing a living revocable trust for his son but is not sure if Thai law firms can do this or does he have to do a will / Testament 

[blackcab]

Trusts that benefit an individual are specially disallowed in Thailand.

 

Civil and Commercial Code Section 1686:

 

Trusts created whether directly or indirectly by will or by any juristic act producing an effect during lifetime or after death shall have no effect whatever.

 

None of that stops your friend setting up a trust in a different jurisdiction.

[FRM-BKK]

 

17 hours ago, blackcab said:

Trusts that benefit an individual are specially disallowed in Thailand.

 

Civil and Commercial Code Section 1686:

 

Trusts created whether directly or indirectly by will or by any juristic act producing an effect during lifetime or after death shall have no effect whatever.

 

None of that stops your friend setting up a trust in a different jurisdiction.

It appears that the foundation for private trust law was laid back in 2018. 
Below a link to an article by Thailand’s Baker & Mackenzie law firm on the very subject. 

 

https://news.bloombergtax.com/daily-tax-report-international/insight-thailandarrival-of-private-trust-law

[chilli42]

At preset, a Trust is not an option … in Thailand.  Always an option to move the assets off shore (Singapore for example) and set up a trust there.

[drronnie]

53 minutes ago, FRM-BKK said:

 

It appears that the foundation for private trust law was laid back in 2018. 
Below a link to an article by Thailand’s Baker & Mackenzie law firm on the very subject. 

 

https://news.bloombergtax.com/daily-tax-report-international/insight-thailandarrival-of-private-trust-law

Thank you much appreciated

[drronnie]

29 minutes ago, chilli42 said:

At preset, a Trust is not an option … in Thailand.  Always an option to move the assets off shore (Singapore for example) and set up a trust there.

So at the moment willl a testament be the only option in Thailand?

[placnx]

You can have a trust created under the law of a common law country such as US or UK, etc, even if you might show your domicile as Thailand in the document. When you (or your son) pass away, if the trust is to continue, the successor trustee would be a financial institution or an individual based in that country. I suppose that you (he) should have a will for these assets (the trust) in that country as well. An estate & trust lawyer of that jusrisdiction could advise on that, but take into account that Thai law does not recognize trusts. However, a post above mentions a Thai law in the draft stage 3 years ago.

 

It appears that you want to be the grantor of the trust. If you would not be the current beneficiary, then it is not a living trust as I understand the term. Who would have the right to revoke the trust, you or your son? Another thing you should consider, especially if the assets are significant and the trust is not revocable by the surviving beneficiary, is having a protector who can change the trustee. 

Edited October 28, 2021 by placnx

[JBChiangRai]

You really need to speak to a lawyer, there can be a way to create the equivalent of a trust, Thai Inheritance Law has a facility to appoint "A Controller Of The Property".  You will need to say this specific phrase to the lawyer, and he will probably need to read up on it to understand it and see if it is possible.

[Used2LuvThailand]

The legal system in Thailand is a Potemkin Village.  It is merely a tool for the wealthy to bludgeon the less wealthy and has no actual role in the lives of the common people.  For example, try enforcing a signed contract with a wealthy Thai person or company....almost an impossible feat.  The Thai people deserve better, but they have no actual rights in any form to demand a better life and future for their children.  They're merely serfs toiling for the benefit of their detached patricians.

[chilli42]

15 hours ago, drronnie said:

So at the moment willl a testament be the only option in Thailand?

That is correct … a Will only.  You can set up a “Controller of the property”, I am just in the process of doing this myself.  It really is nothing like a Trust.  It’s not terribly complicated.  I am setting this up as a means for me to control our Thai assets in the event of my wife’s death …. I don’t want those assets going directly to our children until I pass.  This is really the only way I can manage this situation, my not being a Thai citizen.

[bbabythai]

13 hours ago, Used2LuvThailand said:

try enforcing a signed contract with a wealthy Thai person or company....almost an impossible feat

We have a lease contract with a thai family that I believe is enforceable because its registered at the land office and tax has been paid for 10 yrs. But if it wasn't registered then yes I agree with you.... its not worth the paper its written on. 

[drronnie]

Thank you for details. So I will recommend my friend to assign his daughter to be the "controller of the property". I think one can do a contract which is similar to a will.