Thailand Wills

[JAS21]

I need some clarification/advice please.

Several years ago now, when I paid for the house that I live in with my wife and step-daughter, we put the house in my wife’s daughters name. This was basically to ensure no problem with her ex-husband…a little complicated and still not completely resolved.

Now having been a passenger in her car recently I thought that it would be a good idea if she made a will!

So we scanned the internet looking for the format and guidelines. We have ended up with her handwriting her will and it says that she leaves the house and the land that it is built on to me.

So is this a legal will? My understanding is that I can accept the property but must dispose of it within a year. Disposal within one year is not a problem.

Years ago, something was signed at the Ampur Office, when the house was purchased, allowing me to live in the house for all my life but I don’t remember/fully understand the details.

Also, of course I have a UK will which basically leaves things to my children. My wife has her own UK Investments. Here I own a car, a bank account and two golf club memberships and want my wife inherits these. What must I do to ensure this please.

[nong38]

It sounds like the sort of situation I am about to encounter. It sounds like you have a "usufruct" on the property by the way.

I also have a family in the UK and will be getting a house with "usufruct" registered when I do, so same as you there.

As far as the wills are concerned, this is my position. What is in the UK stays in the UK ( So I will write and leave a will accordingly and leave it in the UK). What is in Thailand stays in Thailand. To be honest I think it would be difficult UK to try and claim Thailand possessions and vice a versa.

In Thailand I am thinking the same as you, I will leave all my possession in Thailand to my partner and she will do the same, leave all hers to me.

I will get a local lawyer to just write it up in Thai/English for us.

The family back home and my Thai partner both are in agreement with what I plan and have promised to not rock the boat and I have to accept their word on that.

I hope this is of help to you. Good luck

[Sunbelt Asia]

A handwritten will in English is valid in Thailand but it must be translated into Thai and certified by the Ministry of Foreign Affairs in order for the Court to appoint the executor of the estate.

The following rules apply both for handwritten wills in English and in Thai:

A holographic or handwritten will must be written entirely in the hand of the person making the will, including the date and the signature according to Chapter 2, Section 1657 of Civil & Commercial Code. No erasure, addition or other alteration in such will is valid unless made by the testator’s own hand and signed by him/her. But under the provision of Section 1656 of the Civil & Commercial Code a will can be made in the following form; in writing, dated at the time of the making of the will and signed by the testator before at least two witnesses present at the same time who shall then and there sign their names certifying the signature of the testator. No erasure, addition or alteration in such will is valid unless made in the same form as prescribed by this section.

Additionally, a will can be witnessed at the local District Office that has jurisdiction over the property with 2 witnesses.

In this will you can ascertain what assets are distributed and to whom.

Assets situated outside Thailand will have to be distributed with a will written according to the laws of that nation.

[sunbelt][/sunbelt]

[seedy]

Am I to understand that I can not appoint my own executor ??

Many thanks

Edited June 16, 2011 by seedy

[Sunbelt Asia]

You can appoint your own executor provided your designated executor is a non related party that does not have any interest in the estate and it would be approved by the Court.

You should also be aware that an heir cannot be a witness to the will as witnesses must not have any interest in the estate. Also, it is best to register the will at the local Amphur (District Office) to avoid any confusion or difficulties.

[sunbelt][/sunbelt]

[InterestedObserver]

Several years ago now, when I paid for the house that I live in with my wife and step-daughter, we put the house in my wife's daughters name. This was basically to ensure no problem with her ex-husband…a little complicated and still not completely resolved.

So we scanned the internet looking for the format and guidelines. We have ended up with her handwriting her will and it says that she leaves the house and the land that it is built on to me.

Either the step-daughter owns the house or she doesn't. The OP's wife cannot bequest property she doesn't own. Or are/were you referring to the step-daughter's name in the Tabien Baan house book which has nothing to do with house ownership?

Edited June 16, 2011 by InterestedObserver

[chiangmaibruce]

And further to IO's comment above ... another query... if it was put into your step-daughter's name then how old is she? If a minor at the time then it's probably unlikely you have a usufruct unless you obtained the consent of the court to enter into such an agreement (?)

[JimGant]

You can appoint your own executor provided your designated executor is a non related party that does not have any interest in the estate and it would be approved by the Court.

Are you sure Sunbelt?

The following quote from Thailegal:

The executor can be anybody, such as a trusted friend or the heir himself. In case of having lots of assets, the testator can assign many executors or lawyers or trustees.

....which seems to make a lot more sense.

[joker7]

FYI

If your not legally married - from a UK standpoint any non UK benefactor is liable for 40% inheritance tax on EVERYTHING. So plan ahead so that your loved ones can escape the tax.

[InterestedObserver]

FYI

If your not legally married - from a UK standpoint any non UK benefactor is liable for 40% inheritance tax on EVERYTHING. So plan ahead so that your loved ones can escape the tax.

So how does the UK collect inheritance taxes on Thailand assets?

[Sunbelt Asia]

You can appoint your own executor provided your designated executor is a non related party that does not have any interest in the estate and it would be approved by the Court.

Are you sure Sunbelt?

The following quote from Thailegal:

The executor can be anybody, such as a trusted friend or the heir himself. In case of having lots of assets, the testator can assign many executors or lawyers or trustees.

....which seems to make a lot more sense.

It is legal but if the will is contested in any way the Court may throw the will out as invalid as the executor may be deemed to have a conflict of interest. (There have been such cases)

Often, when appointing an Executor, the Courts will recommend that a disinterested party be appointed as executor so as to avoid any future conflict.

[sunbelt][/sunbelt]

[joker7]

The UK will collect on ALL Worldwide assets it can find and or tax. You should look into as it was maybe 7-8 years back when I wrote my will.

[JimGant]

Often, when appointing an Executor, the Courts will recommend that a disinterested party be appointed as executor so as to avoid any future conflict.

Well, two things come to mind....

For simple Wills, where each spouse leaves everything to the other spouse, and there are no kids (my example), the chance of the Will(s) being contested would seem to be zip.

As such, our Wills (both US and Thai) have the spouse as executor. Normal procedure, for sure, in the US. But, I don't quite understand the "Often, when appointing an Executor, the Courts... " -- since the executors have already been selected via the instructions in the Wills(?).

I guess what you're saying is that, should the Will be contested, the Thai court has the authority to throw-out the designated spouse executor and appoint a more neutral one...

But, if I had a Will drawn-up at Sunbelt, are you saying you would recommend against appointing my wife as executor?

[12DrinkMore]

The UK will collect on ALL Worldwide assets it can find and or tax. You should look into as it was maybe 7-8 years back when I wrote my will.

Based on what? Have you got a link?

I haven't lived in the UK for well over 30 years. All my assets have been earned outside the UK and most remain outside the UK, and none are onshore in the UK. Under what bit of legislation does the UK taxman have any claim to any of my assets?

[AyG]

For UK inheritance tax the key concept is domicile. This is usually the country you were born in, and is extremely difficult to shake off. If the tax man considers you UK-domiciled he will demand inheritance tax on your worldwide estate.

If you have severed virtually all contacts with the UK and can demonstrate that you have no intention of ever returning then you may be considered non-UK domiciled, in which case IHT will only be payable upon your UK estate.

Unfortunately, the tax man will not tell you whilst you are still alive whether he considers you UK domiciled or not. Also, he won't tell you the criteria by which the decision will be made. (I've tried. He just won't.)

See: http://www.hmrc.gov.uk/cto/customerguide/page20.htm

Edited June 21, 2011 by AyG

[joker7]

Ive attatched a good PDF on domicile. Updated 2007 should be fairly relevant I hope.

Hope this helps.

J

Domicile&IHT.pdf

[12DrinkMore]

Thanks for the links.

This is a subject I was not aware of. I am also not sure whether I'll bother to do anything other than mention it in my will, past the event there is no more to worry about anyway. The next in line can sort it all out. Although it is my intention to end up with nothing left on the day of departure, setting the exact date/time is not so easy.

[InterestedObserver]

The UK will collect on ALL Worldwide assets it can find and or tax. You should look into as it was maybe 7-8 years back when I wrote my will.

So how does the UK collect inheritance taxes on Thailand assets from, for example, your Thai wife/girlfriend domiciled in Isaan.

[12DrinkMore]

The UK will collect on ALL Worldwide assets it can find and or tax. You should look into as it was maybe 7-8 years back when I wrote my will.

So how does the UK collect inheritance taxes on Thailand assets from, for example, your Thai wife/girlfriend domiciled in Isaan.

Where there is a Will there is a way!

(Sorry couldn't resist that)

[joker7]

It would probably be only if she is registered to be domociled in the UK / If not that maybe only UK assets - as I said its been a while since I looked into this. Your best bet would be to speak to someone in the UK more qualified.

Its a long way off for me (I hope) so I have time on my side.

J

[Sunbelt Asia]

Often, when appointing an Executor, the Courts will recommend that a disinterested party be appointed as executor so as to avoid any future conflict.

Well, two things come to mind....

For simple Wills, where each spouse leaves everything to the other spouse, and there are no kids (my example), the chance of the Will(s) being contested would seem to be zip.

As such, our Wills (both US and Thai) have the spouse as executor. Normal procedure, for sure, in the US. But, I don't quite understand the "Often, when appointing an Executor, the Courts... " -- since the executors have already been selected via the instructions in the Wills(?).

I guess what you're saying is that, should the Will be contested, the Thai court has the authority to throw-out the designated spouse executor and appoint a more neutral one...

But, if I had a Will drawn-up at Sunbelt, are you saying you would recommend against appointing my wife as executor?

Administering of estates can be quite complex and may require a considerable amount of time to undertake all the tasks that are required. Things to consider when choosing an executor: is your spouse able to deal with bureaucracy, is she well organized, is she good with paperwork and is she vigilant about meeting deadlines?

When considering your spouse for executor in another country this would be doubly important as well as language skills, ability to travel and obtain visas, and managing the assets when she arrives in your home country.

If you do appoint her executrix, in order for her to be formally recognized by Thai law and allow her to deal with the various government and private sectors, she will need to be formally recognized by the Court as the Executor of the estate. Her petition to the Court to be appointed as Executor could be challenged by other beneficiaries who may feel that they would be better suited to the position.

Sunbelt Asia recommends that for smaller estates, if you feel confident your spouse can manage these issues then you may wish to choose to appoint your spouse. However in medium size and large estates or estates in two countries, a bank or lawyer may be much better.

[sunbelt][/sunbelt]

[Langsuan Man]

Sunbelt Asia recommends that for smaller estates, if you feel confident your spouse can manage these issues then you may wish to choose to appoint your spouse.

Thank you Sunbelt for debunking this myth, that spouses or heirs cannot act as executors here in Thailand

Especially for simple wills with no chance of challenges