Thai' Tax on the death of a Thai leaving monies in a will to a UK resident

[Pmbkk]

 

HI

 

My wife is writing her will and as a "wipeout" provision if we both die at the same time looking at what taxes we may incur if we leave monies to my siblings in England.

My wife is 10 years younger than me, doesn't drink, smoke or take drugs - and a doctor - so I'm assuming she'll outlive me. However in the event of us both dying in an accident we'd like to share the monies from Thailand ( we have Condos ) between our brothers and sisters in Thai & UK.

 

If we add my brothers/sisters as benefactors to her Thai will, will those monies be taxed before been sent to the UK and if so how much ?

 

Mods - I looked for a category and couldn't find it so please move to where required.

 

[Sheryl]

Moved to business/finance forum

[Upnotover]

A quick Google would suggest that only legacies over THB 100 million may be liable to inheritance tax of 5 or 10%.  Most people wont be overly concerned by this I suspect.

[blackcab]

The rule is that each beneficiary can receive up to 100 million baht from each testator before inheritance tax would be levied at a rate of 10 per cent (5 per cent for parents or children).

 

So unless your net worth exceeds 200 million baht multiplied by the amount of beneficiaries at the time of your deaths then you won't have to worry.

[Pmbkk]

Thanks for the prompt feedback.

 

 

 

[Srikcir]

Be very careful with a foreign heir vs Thai heir.

See Thailand's Condominium Act: succession and inheritance

For example:

• "When it comes to inheritance by foreigners the Condominium Act is not foreign friendly and in general foreign heirs must dispose of the unit acquired by last will or succession laws within 1 year of the date of acquisition by inheritance. If the successor fails to dispose of the condo the Director-General of the Land Department is authorized to dispose of the condominium and retain a fee of 5% of the sale price before any deductions or taxes."
• "In case of an unqualified foreign heir of a condominium apartment unit the solution could be to become qualified under section 19, e.g he buys the condominium out of the estate for a price at least equal to the government appraised value."

https://www.samuiforsale.com/real-estate/condo-inheritance.html

 

A forced sale doesn't necessarily translate to fair market value.

 

[Guderian]

14 hours ago, Pmbkk said:

However in the event of us both dying in an accident we'd like to share the monies from Thailand ( we have Condos ) between our brothers and sisters in Thai & UK.

It sounds like you hold a UK passport. In that case, unless you've managed to change your domicile with HMRC to Thailand, which is extremely difficult to do and anyway they're very unlikely to ever confirm it in writing until after you're dead, then the UK tax people will be looking for a chunk of your estate if it's large enough. Please don't confuse domicile with tax residence, they're completely different things, I've lived in Thailand for 20 years but I'm 100% sure that as far as HMRC are concerned my domicile is still the UK. This is an extremely complex area as it involves the taxes on death of two separate countries for which there may be no treaty provisions, and just because you have property in Thailand doesn't mean (as many people naively assume) that it's of no interest to HMRC in the UK. If your estate is large enough, you should try and find a lawyer with relevant expertise, or contact an international professional legacy planner, though they don't come cheap.

[Pmbkk]

5 hours ago, Guderian said:

It sounds like you hold a UK passport. In that case, unless you've managed to change your domicile with HMRC to Thailand, which is extremely difficult to do and anyway they're very unlikely to ever confirm it in writing until after you're dead, then the UK tax people will be looking for a chunk of your estate if it's large enough. Please don't confuse domicile with tax residence, they're completely different things, I've lived in Thailand for 20 years but I'm 100% sure that as far as HMRC are concerned my domicile is still the UK. This is an extremely complex area as it involves the taxes on death of two separate countries for which there may be no treaty provisions, and just because you have property in Thailand doesn't mean (as many people naively assume) that it's of no interest to HMRC in the UK. If your estate is large enough, you should try and find a lawyer with relevant expertise, or contact an international professional legacy planner, though they don't come cheap.

 

This is just for monies my wife & I have here, and we both die at the same time.

I don't have a will in Thailand as everything goes to my wife - she'll send monies back to my brothers and sisters.

This was just to check re if we both died at the same time.

 

In the UK we have wills.

 

Re Lawyer, my mother asked hers to delete three (3) words of her will and they told her £200 + VAT last week.

I just crossed the old will saying null and void and deleted the three words.