Superficies Contract On Business Land

[simon43]

It seems likely that I will soon build another airport hotel in Phuket, (My ex has already sold her half-share in our existing airport hotel and I am in the process of selling my half-share). I retain an interest in the new airport guesthouse that my ex has opened.

My plans are that my current Thai wife will purchase some land and we will build our new small hotel. (For those who recall my tortuous threads on this subject from several years ago, I should comment that my 'new' Thai wife is actually my 'old' Thai wife from 8 years ago who lived with me in the UK at that time - complex relationships which are not relevant to this thread!!)

Of course, I want to protect my investment in case something untowards occurs in the future.

As a legally married couple, a court would award 50% of the business assets to myself in the case of divorce, so I am reasonably well-protected if this (unlikely) event occurs.

I am more concerned about the situation where my partner dies before me. If that should occur, I would want to ensure that I was still 'in control' of our hotel business, and that greedy relatives could not gain ownership of the business. (Actually, her family is very small in number, so again unlikely).

From my research, it would seem that a Superficies agreement would offer the most protection for me, being implemented immediately after my partner has bought the land, and prior to construction of our hotel buildings etc. I would ensure that all construction permits/plans were issued in my name only.

Can those who are knowledgable in these matters care to comment about the suitability of a Superficies agreement in this situation? Both my wife and ex know from experience that our hotel businesses operate most profitably when I am 'in control' of their day-to-day operation, so any risks to the business would tend to come from outside individuals who were not aware of this.

Simon

[InterestedObserver]

Actually to be 100% covered you would need two agreements, a 30-year renewable lease covering the land and a superficies to cover the building(s). Both need to be registered on back of the Chanote. Bear mind that agreements concluded between spouses can be canceled, especially during a divorce. A will should be included to simplify the probate court process.

Edited July 30, 2011 by InterestedObserver

[stgrhe]

The superficies should cover the land part while the actual building (ownership should be separated from the land) and business side, i.e. the company, should be willed to you by your wife. That will cover you in the event your wife passes before you.

See a good lawyer to have all arrangements drawn up.

[InterestedObserver]

How does the OP plan to exercise day-to-day control of the hotel operation, as a Managing Director? That would involve a business venture and alter the land/building ownership structure.

[simon43]

@InterestedObserver

The land will be owned by my Thai wife, with lease/superficies

The business will operate as a registered partnership, as opposed to a limited company. This is because the tax liabilities are reduced, and the lack of limited liability poses a very minimal risk, (we will have public liability insurance etc).

A registered partnership enables me to obtain a WP, although the managing director must be Thai. But in reality, I still maintain day-to-day control of the business, even though this might not be seen 'on paper'. As my ex found out the hard way, trying to manage our hotel without my positive input is a route to financial disaster. Happily, she realised this before it was too late

Since we are legally married, this also gives both parties an equal protection if the marriage ends in divorce

Simon