Help Wanted – Setting Up A Trust

[bdenner]

A friend in his early sixties and his TW have just had a child, her first and his only (and last) Thai child. I have been helping him rewrite his Thai Will based on the original and I have been named be the ‘executor’, it has been translated and registered. Should he meet his untimely demise his TW will be well taken care of and he wants to set up a trust for his child.

Unfortunately he does not have a relative in his home country he can nominate as a trustee and does not have much confidence in TW’s family, I’m near on as old as him so that is not an option.

I know we could go to a lawyer but one hears of many ‘stings’ from trusts in the Western world so I should imagine Thailand is worse. Where do we turn from here? Public trustee, any such thing in Thailand? If so how honest are they?

Thank you for any advise.

[Spaniel]

You didn't mention what country your friend is from or where he wants to establish the trust but if he is from the USA and is interested in establishing the trust there then I would suggest calling

Vanguard Asset management and Trust Services in the USA. You can call them collect using this number: 610 669-1000. first call the AT&T operator on 001 999 11111 and tell them you want to place a collect call to the number 610 669-1000 then when you get the Vanguard operator ask for Trust Services. I dont know what your specific questions arr but they may be able to help you.

[bdenner]

You didn't mention what country your friend is from or where he wants to establish the trust but if he is from the USA and is interested in establishing the trust there then I would suggest calling

Vanguard Asset management and Trust Services in the USA. You can call them collect using this number: 610 669-1000. first call the AT&T operator on 001 999 11111 and tell them you want to place a collect call to the number 610 669-1000 then when you get the Vanguard operator ask for Trust Services. I dont know what your specific questions arr but they may be able to help you.

Thank you, he is British but wants to set up the trust here.

[Dragonman]

A friend in his early sixties and his TW have just had a child, her first and his only (and last) Thai child. I have been helping him rewrite his Thai Will based on the original and I have been named be the ‘executor’, it has been translated and registered. Should he meet his untimely demise his TW will be well taken care of and he wants to set up a trust for his child.

Unfortunately he does not have a relative in his home country he can nominate as a trustee and does not have much confidence in TW’s family, I’m near on as old as him so that is not an option.

I know we could go to a lawyer but one hears of many ‘stings’ from trusts in the Western world so I should imagine Thailand is worse. Where do we turn from here? Public trustee, any such thing in Thailand? If so how honest are they?

Thank you for any advise.

I regret Thailand, as in the vast majority of Civil Law countries, do not have Trust laws. It is a Common Law concept. Estates are managed by individuals normally. I am sure however many lawyers in Thailand know ways around it.

[Old Man River]

You didn't mention what country your friend is from or where he wants to establish the trust but if he is from the USA and is interested in establishing the trust there then I would suggest calling

Vanguard Asset management and Trust Services in the USA. You can call them collect using this number: 610 669-1000. first call the AT&T operator on 001 999 11111 and tell them you want to place a collect call to the number 610 669-1000 then when you get the Vanguard operator ask for Trust Services. I dont know what your specific questions arr but they may be able to help you.

Thank you, he is British but wants to set up the trust here.

He cannot set up a trust in Thailand as Thailand has no trust laws. I have heard of Thai banks finding ways around this, but I have never got comfortable with this, as at the end of the day, there is no protection as the laws do not exist.

I am assuming the fact that he wants to set up a trust here is because his assets are in Thailand not the UK. I have looked into this for myself (I am not an attorney). My attorney tells me that there is a provision for a Controller of Property to be written into a Thai will. This is not a trust. It is, apparently, protected under different laws. In this case, the Controller of the Property is normally separate from the beneficiaries, since if they were one in the same it would defeat the purpose. Depending on how the will is written, upon your friend's death (or upon his and his wife's death), the Controller of the Property would follow what is stipulated in the will - i.e. invest cash in bank deposits with the Controller being the only signatory, manage property, etc. I would suggest an attorney be the one to write this into the will, unless you are an attorney familiar with Thai laws.

If your friend's assets are in the UK he should set up the trust in the UK. His trustee could be in Thailand, but my attorney tells me it is best (most simplest) to have the trust set up where your assets are.

Getting a trustee is the hardest part for those of us past 50, as our friends tend to be our age. Perhaps a younger relative in the UK. If the trust is set up in the UK and if UK laws are similar to US in this regard, he might want to look at setting up a living trust. It makes your friend and his wife (or just him) as trustee while he is alive, giving him time to get a trustee. Banks in the UK will do it, but charge a hefty fee, normally.

I don't think there is anything else I can add here. This is difficult for all of us. I tend to use experienced attorneys who I can trust for issues pertaining to my child as my wife and I, obviously, won't be around when these things kick in. Hence, while I am comfortable with the advice I have been given, I would advise your friend to seek counsel so he can have peace of mind that whatever he does is the right thing for his child.

[fxm88]

Thailand: New Trust Law – Paving The Way For Smooth Transactions In The Capital Market (24 Apr 2006)

Under the Draft Act, a trust is created by a Trust Establishment Agreement. The Draft Act defines a Trust Establishment Agreement as “an agreement whereby the party called the settlor shall transfer to or create a real right or any right in the [trust property] in favour of the party called the trustee who shall manage the [trust property] for the benefit of another party called the beneficiary, and this shall include a letter of intent to establish the trust in cases where the settlor and trustee are the same person.”

[GuestHouse]

First piece of advice, there is no trust law in Thailand, a means by which lawyers act on behalf of their clients is by Power of Attorney.

DO NOT EVER SIGN OVER A POWER OF ATTORNEY IN THAILAND.

With respect to the actual issue of 'Legal Trust', any British law firm will act as trustees to a trust fund, but more usually a will and testiment leaving funds/property in trust. The fees are reasonable, far better than those offered by banks.

Your friend may already have trustees under pensions he may hold. If he is receiving a pension from a private pension fund/company pension fund, then his dependents will almost certainly be entitled to an income after his death.

The way to deal with this pension income is to write a 'Statement of Wishes' to the trustees of his pension. He may for example state he wants any pension/lumpsum payment to be paid into a fund for his child, he might add statements to the effect that he has taken care of his wife by means of purchasing a home/savings etc and is concerned for the upkeap of his child. He would make such a statement to stave off any challange to his 'Statement of Wishes'.

The same goes for life assurance payouts.

I certainly think that if he wishes to secure a trust for his child he should do so in the UK, not Thailand.

As general advice, one of the most compelling reasons to leave funds in the UK is to ensure that you and your will control those funds in the event of a child being born late in your life.

If your friend does have funds in the UK that are sufficient to provide and income, or pensions/insurances in the UK then tell your friend to contact a UK lawyer.

He should NOT bring those funds to Thailand in the belief it might be simpler for his family. International payments are easy and well within what a well instructed trust could manage.

[topfield]

Regarding taxation, there is a 40 percent Inheritance tax in the UK , and zero percent in Italy! Before being able to advise therefore, the benefactor MUST give details of his/her domicile ( NOT residence as domicile is the deciding factor) If domiciled in the UK the monies applied to this trust MAY be taxable and be considered as part of hisher estate and could be taxed at the full 40 percent depending on the amount left by the deceased etc etc.