Foreign owner died after purchasing house/land in Thai partners name

[Aussieroaming]

It seems to me that the thai defacto wife owns her property here...how can it be a gift if they both resided in it as their home.

Maybe she deserves some of the uk assets too.

[steven ber]

It seems to me that the thai defacto wife owns her property here...how can it be a gift if they both resided in it as their home.

Maybe she deserves some of the uk assets too.

The house and land were purchased with Ian's money, under UK law this has to be taken into consideration when valuing assets, it's to stop people getting around inheritance tax by purchasing land abroad, it's the cash paid, and not the land/property that's taken into consideration.

The Thai partner NEEDS most of the UK assets, and it was Ian's intention that this would happen, but without the will, the Thai partner is extremely unlikely to get any of the UK assets.

Edited May 21, 2014 by steven ber

[meatboy]

well well well what an episode an absolute thriller from the first post,it would make a fantastic series for,

" LITTLE BRITAIN IN THAILAND"

I think all of us that has followed this thread from the first post that is the op.has showed much patience and not lost his rag with any of us,and if its true what he is trying to achieve in trying to sort out his past friends business he can only be admired.for those who comment when they have not read the full story please keep them to yourselves.

[steven ber]

well well well what an episode an absolute thriller from the first post,it would make a fantastic series for,

" LITTLE BRITAIN IN THAILAND"

I think all of us that has followed this thread from the first post that is the op.has showed much patience and not lost his rag with any of us,and if its true what he is trying to achieve in trying to sort out his past friends business he can only be admired.for those who comment when they have not read the full story please keep them to yourselves.

Thanks meatboy, I actually really like ThaiVisa, and used to follow it regularly*, and I like the fact that so many members seem convinced everyone else is up to no good, and that there are the occasional members who are up to no good.

*in the days when it looked like a forum and not a commercial website, these day, if you're on a slow connection the page gently bounces up and down as it's loading, and as most of the adds that slow the page are of Thai women, I can't help but laugh and wonder if the bouncing is really a slow loading issue.

I am human though, and a working class 'lad', and I have been tempted to take the bait and get into a slanging match, but that wouldn't do anyone any good, least of all me.

Ian was the king of slagging people off with such politeness that you needed to be really educated to realise he's just insulted you, but he always tried to tell me that getting angry only hurts yourself, of course, I never listened, damn I hate people who are always right.

Anyway, ThaiVisa is still the place to come for really great information, and if that means having to have a little entertainment along the way, it's a price worth paying.

[StaffsShot]

Steven ber god luck to you in your quest sorting Ian's financial affairs out.

It does sound a minefield, not knowing if a will was left in Thailand. If as you say your good friend over many years told you he would leave you a substantial amount in his will, who can blame you for trying to find out.

[Aussieroaming]

I provided the money to start my wife and my life here too. She seized the moment and worked hard to utilize and grow that money. She is nominated in my will in Australia as the owner of all our joint assets should I die. I can only tell others to do what they think is right. All major assets in Thailand are in joint names or hers in regard so real estate.

All I suggest is all couples use legal means such as wills to protect their partners

[icare999]

It looks to me like part of the gift made 5 years ago is still subject to UK inheritance tax.

But firstly there is the 3,000 GBP a year gift allowance.

Secondly there is a nil tax threshold of 325,000 GBP.

And thirdly there is taper relief which reduces the tax by 60 or 80 percent in years 5 and 6 after the gift was made.

So probably some UK tax to pay at 40 pc on the gift.

So maybe the tax man will claw this back either from the UK estate, or maybe try and get it from the Thai giftee.

One for the lawyers!.

first sounds like he was non resident so only his UK assets are subject to UK IH tax. Second even if it was due how on earth do you think UK tax authorities would ever know and no way could they go after any assets he did not have in UK

A lot of people here talk such utter BS and should check UK sites before opening their mouths.

As far as any UK assets are concerned their is as mentioned a 325,000 fee part and for spouses not resident in UK if left in a will an additional 60,000 only. Unlike if spouse is uk resident then its all free of UK IH tax

[icare999]

The extra inheritance tax liability fallls upon the estate first not the recipient of the gift. It will be up to the executor of the will to sort out.

However it sounds like the deceased was not ordinarily resident in the UK for tax purposes and probate may not be applied for in the UK so the liability may not arise.

I do not think residency is the issue here. It depends on your domicile status. It is far more difficult to establish non-domiciled status than it is to become non-resident. If you still maintain contacts with your country of birth i.e. UK you can still be considered domiciled in the UK and subject to UK inheritance tax.

correct and my last post saying non resident should have read non domiciled. Your also right that item ore difficult to prove non domiciled but I took advice on this many years ago and was told in my case with This wife 2 children living here then already 20 years and no place to live in UK It would be impossible for UK Ir to argue i was not non domiciled. In any case i ensured any assets i still had in UK were either transferred to my This wife over 10 years ago or what was left was below 325,000 threshold. I am however concerned that I still own investment property in UK which since let always UK IR can't argue i have a place to live but with silly UK property prices I might now be a little over 325,000 in UK. I gave all my non UK assets to my This wife and children here many years ago to avoid any chance of IH tax. Its ridiculous that IH tax should be paid by my wife if I die just because she is not UK resident.

[glanville63]

I'm in a similar position.

I have a Thai wife, who I married in a registry office in Bangkok 10 years ago and registered the marriage with the British embassy at the time. We have a 9 year old daughter who has a British and a Thai passport. I have two properties in UK and am now in a quandary as to what to do with them. I was originally thinking about upgrading one of the properties so that I could maximize the rental income from it but after reading this forum, I think I should sell the properties and buy condos to let in Thailand so that my wife doesn't get robbed by HM Inland Revenue and she has an income when I pass on. I can't see any other way around it unless I put the wheels in motion to get her domiciled in UK and that's a long long process and time is not on my side.

Any suggestions ??