Buying Land, What's The Best Set Up For Us?

[Smithson]

My wife and I are looking to buy some land and later build on it.

We have a successful business together (Limited Partnership), which is where the money is coming from.

As it's combined money I wouldn't mind the idea of putting the land in my wifes name, however if she pre-deceases me I'd be in trouble.

I'd like to hear from ppl's opinions on the best way to proceed. Should we register it under the Limited Partnership, or a 30 year lease, usufruct etc.?

Thanks!

[Smithson]

Any suggestions?

[WilliamJarvis]

who is the unlimited partner in the limited partnership?

[Khun Jean]

Company -> enough said about that option. (If you don't know do a search and read www.samuiforsale.com)

30 year lease -> You are married and if you lease from your wife.... no protection. If not married or not leasing from your wife. OK.

usufruct -> see 30 year lease.

Limited Partnership. Unfortunately not enough knowledge about that to be helpfull.

[WilliamJarvis]

if his wife is the unlimited partner in an limited partnership (and it was always the case that at least one partner had to be unlimited), putting the property in his wife's name could be very bad news.

Edited March 11, 2008 by WilliamJarvis

[Smithson]

if his wife is the unlimited partner in an limited partnership (and it was always the case that at least one partner had to be unlimited), putting the property in his wife's name could be very bad news.

My wife is the unlimited partner. Having the land in her name isn't a great concern, as it's also her money. The real issue for me is preventing her family from taking over if she predeceases me. Any suggestions?

[WilliamJarvis]

^you realise if your partnership loses money and creditors sue the partnership, the house is collateral against the debt (if your wife is the unlimited partner and the house is in her name)?

[Smithson]

^you realise if your partnership loses money and creditors sue the partnership, the house is collateral against the debt (if your wife is the unlimited partner and the house is in her name)?

Yes, I realize that. As I understand it this is not the case with a company, correct? Changing this would require switching from a limited partnership to a company, any idea how difficult that is?

Thanks!

[WilliamJarvis]

^someone else may know this better than I, but if I recall correctly (and I don't have my Thai law books here) you need to register the company as new. I don't think you can upgrade from being a limited partnership to a limited company.

The Ministry of Commerce will certainly have the answer - as it is their department.

[Smithson]

As our Limited Partnership has no debt, then if it was to go bust there wouldn't be a problem. Does this sound right?

[WilliamJarvis]

^[EDIT] - but how do you go "bust" with no debt.[/EDIT]

The issue I think lies with trade creditors. I think trade creditors have something like 180 days to stake a claim.

I'd certainly check it.

Edited March 13, 2008 by WilliamJarvis

[WilliamJarvis]

I stand corrected. I think you can now update a limited partnership to limited company.

http://www.bangkokpost.com/Business/14Mar2008_biz44.php

Suggest you either speak to the guys as T&G or the MoC