Leaving funds for daughter

[The Maltese Falcon]

I would like to leave some money for my thai daughter what can I do not to let my GF family putting their sticky paws on it. Any ideas

Thanks

[Jip99]

How old is she ?

As far as I can ascertain they do not recognise trusts in Thailand.

You do not make it clear but your note suggests that this is a bequest following your demise.

Be clear on what YOU want to achieve. I have recently seen someone establish a trust, in the UK, for their son based on paying a set amount each year for 10 years.

[craigt3365]

I think you'll do better with this over in the investment forum. So, let's move this topic over there, OK?

Topic Moved.

[Thailaw]

How old is she ?

As far as I can ascertain they do not recognise trusts in Thailand.

You do not make it clear but your note suggests that this is a bequest following your demise.

Be clear on what YOU want to achieve. I have recently seen someone establish a trust, in the UK, for their son based on paying a set amount each year for 10 years.

Jip99 is correct, the concept of "trusts" (one person or company holding property for the benefit of another person and bound by certain fiduciary responsibilities in relation to the management of those assets) is not recognized under Thai law. A trust can be established in the US or the UK with a trustee to manage the assets and pay to the beneficiary a specified amount monthly as the trust instrument specifies. But there are two issues -- how to get assets located in Thailand into the trust (or child's ownership) and how to ensure that money paid out of the trust will be used for the benefit of the child/children, as the money will be paid to the minor child's guardian and she will have significant discretion as to how the money is spent. It will be difficult to prevent "leakage" to the broader family, but you should be able to ensure that the vast majority of the assets in the trust are spent for the benefit of the child. There will, of course, be expenses of the trustee, unless you have a knowledgeable and willing family member/friend that you trust to serve as your trustee.

I have established such trusts for my two Thai/US daughters, with a trustee to manage and oversee how money is paid to and used by their mom. But he is in the US, so his oversight will be pretty broadly applied. Everything remaining in the trust estate will be paid to my girls when they reach 23. The house I own in Thailand is transferred to the children on my death (I may do that sooner if and when I am sure that I will not want to sell it, as a court must approve the sale of property owned by minor children, which is often difficult to get).

There is a lot of very bad advice on wills in Thailand posted on this site (and elsewhere on the internet), so tread carefully, especially if you have any concerns regarding competing claims on your estate. If you are not legally married the risk is much less, but still not zero.

I hope that this helps. PM me if you want to discuss this further.

Edited September 5, 2014 by Thailaw

[WhizBang]

I have established such trusts for my two Thai/US daughters, with a trustee to manage and oversee how money is paid to and used by their mom. But he is in the US, so his oversight will be pretty broadly applied. Everything remaining in the trust estate will be paid to my girls when they reach 23. The house I own in Thailand is transferred to the children on my death (I may do that sooner if and when I am sure that I will not want to sell it, as a court must approve the sale of property owned by minor children, which is often difficult to get).

There is a lot of very bad advice on wills in Thailand posted on this site (and elsewhere on the internet), so tread carefully, especially if you have any concerns regarding competing claims on your estate. If you are not legally married the risk is much less, but still not zero.

I hope that this helps. PM me if you want to discuss this further.

Did you mean 'not legally married' or 'legally married', the risk is much less?

[Thailaw]

I have established such trusts for my two Thai/US daughters, with a trustee to manage and oversee how money is paid to and used by their mom. But he is in the US, so his oversight will be pretty broadly applied. Everything remaining in the trust estate will be paid to my girls when they reach 23. The house I own in Thailand is transferred to the children on my death (I may do that sooner if and when I am sure that I will not want to sell it, as a court must approve the sale of property owned by minor children, which is often difficult to get).

There is a lot of very bad advice on wills in Thailand posted on this site (and elsewhere on the internet), so tread carefully, especially if you have any concerns regarding competing claims on your estate. If you are not legally married the risk is much less, but still not zero.

I hope that this helps. PM me if you want to discuss this further.

Did you mean 'not legally married' or 'legally married', the risk is much less?

The risk of a competing claim/contest of the will by a woman with whom the testator co-habits (the daughter's mother) but to whom he is not legally married (assuming that she is not provided for in the will) to the OP's daughter's claim (assuming that she is provided for in the will) is less if he is not legally married to the daughter's mother.

[fletchsmile]

I have established such trusts for my two Thai/US daughters, with a trustee to manage and oversee how money is paid to and used by their mom. But he is in the US, so his oversight will be pretty broadly applied. Everything remaining in the trust estate will be paid to my girls when they reach 23. The house I own in Thailand is transferred to the children on my death (I may do that sooner if and when I am sure that I will not want to sell it, as a court must approve the sale of property owned by minor children, which is often difficult to get).

There is a lot of very bad advice on wills in Thailand posted on this site (and elsewhere on the internet), so tread carefully, especially if you have any concerns regarding competing claims on your estate. If you are not legally married the risk is much less, but still not zero.

I hope that this helps. PM me if you want to discuss this further.

Did you mean 'not legally married' or 'legally married', the risk is much less?

The risk of a competing claim/contest of the will by a woman with whom the testator co-habits (the daughter's mother) but to whom he is not legally married (assuming that she is not provided for in the will) to the OP's daughter's claim (assuming that she is provided for in the will) is less if he is not legally married to the daughter's mother.

WhizBang,

I think Thailaw is trying to say:

"The risk...... is less if he (OP) is not legally married to the daughter's mother"

Then the rest is caveats and assumptions by Thailaw just in case Thailaw is wrong.

Cheers

Fletch

[fletchsmile]

In an indirect sort of way Thailaw also brings up the point that whatever the law is in Thailand, you can only give the legal theory as in practice people find ways to circumvent the law, if they have sticky paws as OP suggests. Whether that's pressurising the mother, paying people off, completely ignoring the law or whatever. Legal position can be one thing and enforcement and reality another.

As above trust law doesn't really exist in Thailand. From a legal and practical point of view the safest bet is therefore putting the assets outside Thailand, somewhere trust law does exist. Not only is there then legal protection, but the assets are then also physically outside Thailand and outside the reaches of the "in-laws".

Practically given there's a risk of the family pressurising the mother of the daughter, so it's probably not a wise move for her to be someone controlling the trust either. Preferably OP needs someone who has no connections to the family, and/or someone he completely trusts not to be misled or corrupted by the "in-laws" and/or anything else to look after and administer it.

OP also needs to consider what would happen if he and the daughter's mother died at the same time, eg in a car accident. Finding someone you trust and is right to look after your kids can be difficult. Finding someone you trust and is right to look after your money can be difficult. Finding someone you trust and is right to look after both your money and your child is very difficult. For me that is my own family, and then a very few select friends. I trust quite a few friends with my money, but not all of them would be a great choice for my kids even with the best intentions in the world. Similarly those who would be great with your kids, won't necessarily manage your money well. Even when you identify such a person, think what you're going to do if they die before or with you and provide for that too

Cheers

Fletch

Edit: Thailaw's first post seems sensible and if Thailaw is actually in the legal profession could be worth you discussing with them - but bring your translator

As an additional point to OP. You might also want to think about a "living will". i.e who would administer your financial affairs to look after you and your daughter should you be either mentally or physically incapacitated and unable to do it yourself

Edited September 5, 2014 by fletchsmile

[falkan]

sounds like you planning to die soon? isn't it easier just send her to good school and later overseas to study and when she ready you hand over the money?

SET is doing pretty good now..