How to provide “annuity-like” income stream to Thai citizen?

[JourdanA]

I want to transfer $30,000 USD to a Thai citizen’s baht account in Thailand. But I do NOT want the entire sum to be transferred all at once. Instead, I’m looking for a way to establish an income stream that will AUTOMATICALLY make transfers of $150 USD for two hundred months. 

 

Here’s the reason: Because of cultural and family complications, my beneficiary in Thailand would do better with a “monthly income stream” as opposed to “a lump sum payment.” Once I initiate the transfer, I will not want to cancel or modify it. Also, I want transfers to continue monthly until all $30,000 USD is gone EVEN IF I DIE FIRST.

 

In essence, I want to buy an annuity for my Thai beneficiary, but I don’t believe annuities are available in Thailand.

Can anyone think of a way to make this happen? Is there a financial product or service that could do this? I know this service would be of interest to other people who want to provide an income stream to close friends or loved ones in Thailand.

 

I appreciate any help.

[Paulaew]

If you can setup a bank account in Thailand, you can arrange monthly transfers of a given amount to your recipient. That can be usually be setup online.

 

If you want to arrange this from another country, you will be paying wire transfer costs each month for small amounts of money, which won't make much sense. So you really need to set this up in Thailand if you can.

 

Paul Laew

[LivinLOS]

Set up as a trust outside Thailand with the transfers in automated.. 

Thailand doesnt accept trust laws and bank auto transfers get iffy after a 2 year set up time.. 

[stigar]

In my bank i can easy do like that in my internettbanking.Just make a monthly payment and sign how much pr month.This will then go automatic if i want.

[LivinLOS]

Just now, Paulaew said:

If you can setup a bank account in Thailand, you can arrange monthly transfers of a given amount to your recipient. That can be usually be setup online.

I cannot set up automated transfers online from my bank greater than 24 months in advance.. 

What bank are you using that can set up automated transfers 15 years into the future ??

[LivinLOS]

Just now, stigar said:

In my bank i can easy do like that in my internettbanking.Just make a monthly payment and sign how much pr month.This will then go automatic if i want.

again.. 15 years into the future ??

 

Kasikorn just raised the auto transfer from 1 year to 2.. but thats a fraction of the time line he is asking for. 

[Paulaew]

Yes, good point about the time limits on auto transfers from banks. You would need to be around to update the transfer settings.

 

Another way to do it is to purchase an annuity from one of the insurance companies here and see if you can find one that will accommodate your terms.

 

Paul Laew

[Peterw42]

4 minutes ago, LivinLOS said:

Set up as a trust outside Thailand with the transfers in automated.. 

Thailand doesnt accept trust laws and bank auto transfers get iffy after a 2 year set up time.. 

People take out 30 year mortgages and pay them using 30 years of auto transfers/direct debit. Same with car payments etc, 5 years later the same transfer is paying the loan each month.

[Paulaew]

7 minutes ago, LivinLOS said:

Set up as a trust outside Thailand with the transfers in automated.. 

Thailand doesnt accept trust laws and bank auto transfers get iffy after a 2 year set up time.. 

If he has to pay monthly wire transfer costs at $40 per transfer, that will cost $7,200 over the lifetime of the trust.

 

Paul Laew

[PoodThaiMaiDai]

WISE has a transfer option that allows you transfer weekly, bi-weekly, monthly, quarterly or "never."

 

You can also choose an end date.

 

Plus the fees are very reasonable.

 

Edited February 2, 2022 by PoodThaiMaiDai

[stigar]

26 minutes ago, LivinLOS said:

again.. 15 years into the future ??

 

Kasikorn just raised the auto transfer from 1 year to 2.. but thats a fraction of the time line he is asking for. 

I can do that in my home country bank.Im not using any thaibank.

[mtls2005]

7 minutes ago, PoodThaiMaiDai said:

WISE has a transfer option that allows you transfer weekly, bi-weekly, monthly, quarterly or "never."

Agreed, but not sure what any time limits might be? Or the "death" caveat?

 

How long is the $30,000 expected to last? 12 1/2 years (@ $200/mo)?

 

42 minutes ago, JourdanA said:

EVEN IF I DIE FIRST.

 

The death thing is going to be tricky to deal with, IMO.

 

 

 

 

 

[Paulaew]

2 minutes ago, mtls2005 said:

Agreed, but not sure what any time limits might be? Or the "death" caveat?

The OP is trying to send $150/mo for 15 years.

 

Given the nature of the fintech industry, WISE may be sold or otherwise disappear before the 15 year period expires. I think the OP needs a staid bank or insurance company or law firm in Thailand to handle this for him.

 

Paul Laew

[mtls2005]

2 minutes ago, Paulaew said:

Given the nature of the fintech industry, WISE may be sold or otherwise disappear before the 15 year period expires. I think the OP needs a staid bank or insurance company or law firm in Thailand to handle this for him.

D-Oh. I said as much with my qualifier. Sheesh.

 

8 minutes ago, mtls2005 said:

but not sure what any time limits might be?

 

A staid bank, insurance company or law firm might well not last the 12.5 - 15 years as well. 

 

 

 

Oh, I get the $30,000 benchmark, was wondering why so specific. 

 

One Million Baht, said in the best Dr. Evil impression.

[lopburi3]

45 minutes ago, Paulaew said:

If you can setup a bank account in Thailand, you can arrange monthly transfers of a given amount to your recipient. That can be usually be setup online.

In my experience this is limited to a year or so at most and then has to be renewed - but perhaps different banks have different rules.  But any bank account owned by someone who dies immediately becomes locked when known so not a good idea for payments after death.

[blackcab]

I know of at least one extremely reputable Thai company that offers this service, however their fees average around 10 per cent up front and then a small monthly fee.

 

The contract they form can take care if you are deceased.

 

It's not especially cheap, however Thai legislation and corporate accounting is cumbersome and nobody reputable is going to do it for cheap.

 

In fact be highly suspicious of anyone with a cheap price, because it's just not realistic.

[PoodThaiMaiDai]

Some of you are bad at math.  ????

  

$30,000 / $150 = 200 months

 

200 months = 16 years and 8 months

 

Of course this is not counting if you put the funds in an interest bearing account.

[lkn]

On 2/2/2022 at 5:07 AM, LivinLOS said:

What bank are you using that can set up automated transfers 15 years into the future ??

With Krungthai Netbank (not phone app) I have the option to setup transfer until a total amount is reached:

 

 

This is only when transferring to other customers in Krungthai, a small price to pay.

 

As others have pointed out, there might be a problem if OP dies. But I don’t believe banks are actually informed about this (how would they?), only if you list your foreign assets in your will, will the executor of the will make sure the bank account is included in the estate, otherwise it will be left alone, and because it has the recurring transaction, it should be kept alive.

 

Maybe $30,000 is too little to consider for an investment, but with a time frame of almost 17 years, I would seriously consider this route. But that only makes the automatic payout even harder, and if it is in your name, there might be tax implications. Really need someone to “watch” this.

 

For the records, I would also be very interested in a product a la what OP asks for. So far, the best I have come up with is to setup an investment account abroad, in the name of the beneficiary, but only providing them with a VISA card where money is regularly transferred to.

 

In theory they could get control of the investment account, as it is in their name, but not exactly easy without account number, answers to security questions, the 2 factor authenticator, minimal English skills, and branch located abroad.

 

It just occurred to me though that this VISA card will have to be renewed. The bank did send the original card to the address of the beneficiary (in Thailand), but I could see potential problems here in the future, e.g. if beneficiary changes address, card is lost in mail, or bank changes procedure wrt. activating the new card, etc.

[Halfaboy]

If you die, your embassy is informed and a few moments later your bank accounts are blocked.

[Stocky]

31 minutes ago, Halfaboy said:

If you die, your embassy is informed and a few moments later your bank accounts are blocked.

Thailand 4.Uh-Oh - I doubt it.

[LivinLOS]

On 2/2/2022 at 4:14 AM, Peterw42 said:

People take out 30 year mortgages and pay them using 30 years of auto transfers/direct debit. Same with car payments etc, 5 years later the same transfer is paying the loan each month.

Thats a direct debit, which is instigated by a registered business set up to deduct any amount they like.. I use it for electric internet etc.. But that doesnt meet this need.

Automated transfers.. At least with all the banks I use, can only ne set up for a couple of years.. Until recently only 1 but now with kasikorn 2. 

[LivinLOS]

On 2/2/2022 at 4:16 AM, Paulaew said:

If he has to pay monthly wire transfer costs at $40 per transfer, that will cost $7,200 over the lifetime of the trust.

 

Paul Laew

A small price to pay for achieving the goal surely. 

 

[LivinLOS]

On 2/2/2022 at 4:40 AM, mtls2005 said:

The death thing is going to be tricky to deal with, IMO.

and precisely what trusts are designed for.. 

[LivinLOS]

On 2/3/2022 at 11:18 AM, Halfaboy said:

If you die, your embassy is informed and a few moments later your bank accounts are blocked.

I can absolutely say with 100% experience this is not the case when a Thai dies.. 

[Halfaboy]

I agree with you. I was referring to Farang dead's. That system seems to work very well....

[lungbing]

On 2/3/2022 at 6:18 PM, Halfaboy said:

If you die, your embassy is informed and a few moments later your bank accounts are blocked.

And how does my embassy know my bank account details?

[CartagenaWarlock]

On 2/1/2022 at 10:06 PM, stigar said:

In my bank i can easy do like that in my internettbanking.Just make a monthly payment and sign how much pr month.This will then go automatic if i want.

Which bank that will be? I think bangkok bank is 99 transfer is the max. I have set it up for my baby's mother every week for $150but it is 99 transfers max. I have to make it happen after 99 years. 

Edited February 6, 2022 by CartagenaWarlock

[Neeranam]

On 2/2/2022 at 11:06 AM, stigar said:

In my bank i can easy do like that in my internettbanking.Just make a monthly payment and sign how much pr month.This will then go automatic if i want.

What bank?

 

I'd like to do this to my kids

[stigar]

11 minutes ago, Neeranam said:

What bank?

 

I'd like to do this to my kids

SNN.NO

[stigar]

19 minutes ago, Neeranam said:

What bank?

 

I'd like to do this to my kids

SNN.NO