Inheritance Laws.

[Liquorice]

I'm trying to get some advice and understand the Inheritance Laws in Thailand in order to assist a friend (foreigner).

His Thai wife has just passed away. She/they have no children and her parents are deceased, but she has 12 full blood brothers and sisters. They owned a house, car etc but all in her name. She left no Will.

From what I have read, my friend automatically inherits 50% of the assets, as the surviving spouse. The other 50% is shared equally between her brothers and sisters. However because of the laws concerning land ownership by foreigners he must either sell the land or transfer it to a Thai national within 12 months.

My friend wants to remain in the house for the foreseeable future.

His wife came from a wealthy family and they have no need of money, so no pressure is being placed on my friend by the family.

In the case he transferred the land ownership to a trusted family member, could some form of lease or agreement be placed on that ownership that prevented the Thai from selling the land for 30 years or until the death of my friend in order to safeguard his rights to remain in the home.

He will need some professional advice at some point in the near future, but an idea of what he can maybe expect for his future would be helpful at this moment in time.

[NancyL]

What you outlined is my understanding of how things work here. Your friend is very fortunate that his late wife's brothers and sisters are not creating difficulties for him in what has to be a very difficult time. Since his late wife came from a wealth family and it sounds as if the brothers and sisters are being very supportive, it would seem likely that one of them would know a lawyer who could work out the necessary arrangements.

I know some would say it's folly to ask the brothers and sisters for help -- perhaps it is, but with no heirs in Thailand the friend should think about what will happen to the property when he passes. It only makes sense that it would go to back to his late wife's family -- at least until the time that he decides to remarry. But the answer is that a lawyer is needed to make the necessary arrangements.

Edited May 30, 2015 by NancyL

[Jip99]

It may be worth transferring the property to the family and taking a 30 year lease on the property.

[Liquorice]

What you outlined is my understanding of how things work here. Your friend is very fortunate that his late wife's brothers and sisters are not creating difficulties for him in what has to be a very difficult time. Since his late wife came from a wealth family and it sounds as if the brothers and sisters are being very supportive, it would seem likely that one of them would know a lawyer who could work out the necessary arrangements.

I know some would say it's folly to ask the brothers and sisters for help -- perhaps it is, but with no heirs in Thailand the friend should think about what will happen to the property when he passes. It only makes sense that it would go to back to his late wife's family -- at least until the time that he decides to remarry. But the answer is that a lawyer is needed to make the necessary arrangements.

Thanks Nancy. The problem with my friend is that he's very laid back and far to trusting of the words and promises of others.

He has excellent relations with her family, but that's not to say that won't change in the future, especially if he happened to meet someone else. He isn't of retiring age yet, so still has a long life ahead of him. The other problem is that although he will sit down with the family to discuss the issues, they appear oblivious to their own laws about foreign land ownership.

They appear to be under the impression they can reach a mutual agreement between themselves without the need for any legal proceedings, which they will probably see as an interference.

Doing nothing will in effect mean the Land Office will come along in 12 months and sell the land from under their feet, if I'm interpreting the law correctly. No land, no house.......effectively.

I've advised him to sit down with the family first, then to consult a lawyer about his rights and the legal side of it.

Hopefully some compromise that protects everyone can be reached and allow him to continue his life as he wants.

[Liquorice]

It may be worth transferring the property to the family and taking a 30 year lease on the property.

That's an option I considered Jip, which would satisfy their inheritance worries.

My friend though is still young, not retirement age. His wife was about 43/44 years old. He is still young enough that perhaps in the future he meets someone else. That is when I can see a problem arising regardless of how well meaning their intentions are at the moment.

[Jip99]

It may be worth transferring the property to the family and taking a 30 year lease on the property.

That's an option I considered Jip, which would satisfy their inheritance worries.

My friend though is still young, not retirement age. His wife was about 43/44 years old. He is still young enough that perhaps in the future he meets someone else. That is when I can see a problem arising regardless of how well meaning their intentions are at the moment.

I am almost more concerned about what happens after a year.

As you are aware:-

If the foreigner fails to dispose of the land the Director-General of the Land Department is authorized to dispose of the land and retain a fee of 5% of the sale price before any deductions or taxes.

[zeichen]

I think it sounds like you know exactly what to do. The only thing I wonder is with the new inheritance laws if the inlaws will be taxed on the property they inherit, making it less likely that they would be willing to keep it. If they have to pay money up front on taxes from it but don't actually get any money for holding 50%, they might not be too happy.

I think from an emotional viewpoint it would be very hard to to live in the house where my wife died.

Overall it sounds like he will be fine though, but using a lawyer will aid him in his rights and set up things to avoid fees or penalties.

[Liquorice]

It may be worth transferring the property to the family and taking a 30 year lease on the property.

That's an option I considered Jip, which would satisfy their inheritance worries.

My friend though is still young, not retirement age. His wife was about 43/44 years old. He is still young enough that perhaps in the future he meets someone else. That is when I can see a problem arising regardless of how well meaning their intentions are at the moment.

I am almost more concerned about what happens after a year.

As you are aware:-

If the foreigner fails to dispose of the land the Director-General of the Land Department is authorized to dispose of the land and retain a fee of 5% of the sale price before any deductions or taxes.

Exactly!

My friend is a genuine good bloke, kind, caring, considerate, but in my opinion to trusting.

Regardless of what he thinks about the rest of his Thai family, I wouldn't like to see the guy shafted later on and become another statistic of a foreigner loosing everything, or almost.

I have a couple of 'niggles' that bother me about the situation.

They married two years ago and bought a house. The vast majority of the funds coming from him.

His wife was diagnosed with a fatal illness some months ago, but despite this they bought and moved into a new home only 2 months ago. The previous almost new house was sold to one of her sisters for an undisclosed amount. and my friend topped up to purchase the new house.

Knowing you only had a limited time to live and buying a new house, why wasn't an usufruct put in place then to protect my friends assets, and why wasn't a Will drawn up. In fact why wasn't the house ownership put in his name?

He trusts her family implicitly. I have reservations, but maybe not founded.

However I'd like to find out what his options are ..........just in case!

Maybe I'm becoming to involved in a matter that doesn't involve me, but I'd to hear the opinions of others on this situation, or should I just butt out as it's non of my business.

[Jip99]

I think you can convey your concerns and guide him on what to do. That;s it.

You can only lead the horse to the water................................

[Beetlejuice]

May I ask some questions. Were the couple officially married? And the land and house was purchased with who`s money?

Under Thai law unless the farang husband has purchased the said land under the auspices of a Thailand based company or with an approved BOI scheme, than the land has to be solely purchased with his Thai wife`s funds from inception with back up documentation to prove it. What this means is; that when his deceased wife`s, ever loving, ever caring family suddenly turn up to make their claim on what they consider to be their inheritance and the land and property falls under dispute, if the land was not purchased strictly as imposed under Thai law, than this could go against him if it reaches court.

If all above board and legally purchased, the farang husband inherits 50% of the said land and property in the event of his spouse`s death, shared with her other next of kin, which in this case is her siblings. unless his wife died in testate and stated otherwise.

Considering that the wife left no will, then be prepared for the in-laws to try and muscle in and take a major chunk of the wife's estate. This could also pertain for the contents of joint bank accounts and vehicles not in the farang husband`s name.

Whatever part of the real estate the farang husband inherits upon his wife's death, will have to be sold up or transferred to a Thai within 12 months. because foreigners are not allowed to own land in Thailand. But at the end of the day, still alot may depend on the judge`s discretion.

My advice is this; the guy should seek professional advice and hire the services of a reputable Thai lawyer and not place anything on trust or informal agreements. He should begin the process sooner and not later.

[Liquorice]

Yes, they were officially married.

Their first house and land was purchased jointly, although I don't know the exact ratio.

The current home and land was purchased from the sale of the first house and a top up.

They didn't have any joint bank accounts.

He is on an extension based on retirement.

My friend transferred funds from the UK to his bank account, then transferred money to her account in both cases to make the purchases. He obviously has records of those transactions.

He will hopefully sit down with the family this next week to discuss his position and their intensions. Only then will we know if there is likely to be any immediate problems. I have 'grilled' it into him that any informal agreements must be made formal through a lawyer, and if the family truly are genuine they won't take offence to any such agreements being made formal in writing.

I already have the contact details for 2 English speaking lawyers.

Edited May 31, 2015 by Faz