Usufruct Or 30 Year Lease

[canopy]

Sorry for a basic question, but what would be the reasons for choosing a usufruct over a 30 year lease and vice versa? Do both give the ability to build a house and landscape?

The question that comes to mind with a 30 year lease and I suspect the usufruct as well is what if 5 years down the road one wishes to move. Is there the possibility of opting out early or are you stuck paying another 25 years for something you don't want any longer?

[PattayaParent]

I think you'll find with both that you'll be expected to pay up front the full amount.

[donx]

If you think you may wish to move after 5 years then I would avoid either one of these unless the price is insigificant to you.

Lawyers are claiming that you can create a 30 year lease with a usufruct, so assuming this is the case, you could get someone else to lease for 30 years. And with a 30 year lease, you may be able to sub-lease. This I don't know well enough to claim so talk to a lawyer.

The advantage of the usufruct is that it can last for your lifetime. Others have even made it last for both them and their partner's lifetime. Now if they both die tomorrow, then the usufruct ends tomorrow. The 30 year lease last 30 years - dead or alive. Thus it can be willed to someone such as your farang children.

As Isaanlawyer always states, each person's situation is different, so whether a usufruct or a 30 year lease is better for you depends upon your situation.

[glyph]

A lease provides a taxable income. An usufruct states an imputed, non-taxable amount.

[cloudhopper]

My atty was of the opinion that using usufructed land principally for a primary residence had not been sufficiently tested in court.

[ZZZ]

The advantage of the usufruct is that it can last for your lifetime.

With people getting knocked off for for very small amounts in Thailand this could be a very big disadvantage.

[donx]

The advantage of the usufruct is that it can last for your lifetime.

With people getting knocked off for for very small amounts in Thailand this could be a very big disadvantage.

Yep, that's precisely why I said the usufruct could end tomorrow.