If Thai Wife Dies, What Happens To Land & Co. Assets?

[Marvo]

Got no definitive answers to this post in "General" so am trying here

Looking for advice please on what happens to Thai wife's assets under the 2 scenarios below:

Situation:

There is a legitimately working and trading Thai Ltd company, 3 shareholders: Farang husband 40% (preference), Thai wife 49%, A.N. Other 11%.

Thai wife owns 100 talang wah of land on which the company premises are built. The company owns the building built on Thai wife's land.

Scenario 1: Thai wife dies without having made a will.

Scenario 2: Thai wife dies having made a will, stating she leaves ALL of her assets/belongings to her "farang" husband.

I'm thinking in terms of, and under normal circumstances, "1) farangs cannot own land in Thailand, and 2) farangs cannot hold more than 49% of shares in a Thai Ltd Company".

Thanks in advance.

[InterestedObserver]

1. No will, assets go to the statutory heirs as defined in the Civil and Commercial Code.

2. With specified will, foreign husband gets it all but has to dispose of assets he cannot legally own.

[caf]

1. No will, assets go to the statutory heirs as defined in the Civil and Commercial Code.

2. With specified will, foreign husband gets it all but has to dispose of assets he cannot legally own.

Excellent answer

You're obviously not the same guy that has just asked for a list of PTT stations in Chiangmai.

We need to clone you and set the clones up as TV members to address the current balance.

Sorry, in a mischievious mood

caf

[gamini]

I think they will give you a year to dispose of the land.

1. No will, assets go to the statutory heirs as defined in the Civil and Commercial Code.

2. With specified will, foreign husband gets it all but has to dispose of assets he cannot legally own.

Excellent answer

You're obviously not the same guy that has just asked for a list of PTT stations in Chiangmai.

We need to clone you and set the clones up as TV members to address the current balance.

Sorry, in a mischievious mood

caf

[personchester]

1. No will, assets go to the statutory heirs as defined in the Civil and Commercial Code.

2. With specified will, foreign husband gets it all but has to dispose of assets he cannot legally own.

Yes, that is correct, but I have heard that this is subject to a legal time factor, that is to say the sale must be completed within a certain time frame, can anyone confirm this ...

If that is the case, then this is bound to result into negativities for Farangs, since the property market in Thailand is not very active and it takes quite some time to sell (years in fact) thus if the time frame has exceeded, what will happen to the ownership of the property. ?

[Mario2008]

There is a 1 year time frame for a foreigner to sell the land.

[InterestedObserver]

From the Land Code:

Section 93 The Minister shall permit the inheritance of land by an alien who is the lawful heir, but such acquisition when added to that which s already held may not exceed the amount which may be held under Section 87.

Note: Ministry of Interior permission is required, which is seldom given.

Edited February 6, 2011 by InterestedObserver

[Marvo]

There is a 1 year time frame for a foreigner to sell the land.

Mario, any idea what the time frame is for disposal of any inherited company shares that put a foreigner in excess of the permitted 49% in a Thai company? And also, maybe connected, how long is a Thai Ltd company allowed to continue with only 2 shareholders, after the death of one of the 3 shareholders?

[personchester]

There is a 1 year time frame for a foreigner to sell the land.

So the time frame is one year... now the other question ... what will happen to the ownership of the property when no sale has taken place within the legal time frame, does anyone know ?.

Edited February 6, 2011 by personchester

[InterestedObserver]

From the Land Code:

Section 94 All the land which as alien has acquired unlawfully or without permission shall be disposed of by such alien within the time limit prescribed by the Director-General which shall not be less than one hundred eighty days nor more than one year. If the land is not disposed of within the time prescribed the Director-General shall have the power to dispose of it. The provisions on the forced sale of land in CHAPTER 3 shall apply mutatis mutandis.

Edited February 6, 2011 by InterestedObserver

[saengsureeya]

House owned by the company. Wife is shareholder in the company (49%).

Land is owned by the wife.

Wife dies, she is also 49% owner of the land.

Husband will inherite the land and has time (approx. one year) to find a new owner.

Finding a new share holder (or more) may be easier and write the land over to the company.

Too easy?

[nong38]

So there has to be 3 or more shareholders in the company? It would seem if the wife died it would be easier to get a replacement shareholder to take her place and you can carry on living there? Or maybe sell the company to a new company which you may or may not be a shareholder in and take out a 30 year lease from one of the 2 companies? ( original company or new one).

How do you form a company here and who can help you do it?

Edited February 18, 2011 by nong38