(6) Legal Lines

LEGAL LINES STORY : Voralak Suwanvanichkij and Sathien Hemsin PHOTOGRAPHY : Dan White

Who Gets What, and How? Wills

executor can hold the property for the minor or appoint a guardian to

In Thailand, many types of property, rights, duties and liabilities can be

hold the property until the minor reaches majority.”

included in an inheritance. Dennis stresses the importance of a will, as it

While “wills made overseas are

is the core document associated with

acceptable,” Dennis advises that it may

transfer of property upon death.

be more cumbersome if the executor named in the will is not in Thailand and

For a will to be valid in Thailand, it

if the will is in a foreign language. He

must be in compliance with Thai law,

suggests that a person makes separate

with these basic requirements:

wills applicable in each country in which they own assets to speed up the process

 The testator must be at least

of estate administration.

15 years of age, and have full mental capacity

Intestacy

 The will can be in English or Thai  The will must be dated and signed

Where a person dies without a valid

by the testator in the presence of

will, property is distributed according

two witnesses who cannot be

to the law. Dennis explains that there

beneficiaries under the will or

are six classes of statutory heirs.

persons lacking full mental capacity

Entitlement applies in descending order: children; parents; siblings; half-siblings;

Sathien (Dennis) Hemsin

No one likes to dwell on their eventual demise, but for property owners planning ahead is essential. We speak with Sathien (Dennis) Hemsin, director of Bangkok International Associates, about options for transferring property in Thailand upon death.

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The testator can make and execute

grandparents; and uncles and aunts. If

the will in the District Office, where

no statutory heirs exist, the surviving

a record of such will remains secret

spouse receives the entire estate.

during the testator’s lifetime. The will may also be altered at any time through

If the deceased is survived by a

a subsequent will or a codicil that states

spouse (foreign or Thai) and children,

whether the first will is completely or

the spouse receives 50% of the

partially revoked.

property and the children divide the remaining 50% into equal shares.

Dennis also explains that trusts do

Similarly, if one is survived by a spouse

not exist in Thai law and: “if a testator

and parents or siblings, the spouse

wants to leave property to a minor

receives 50% and the parents or

(person under 20 years of age), an

siblings share the other 50%.

If the deceased leaves a spouse and

In the case of leasehold property,

shareholders in a Thai company,

heirs in the latter three classes stated

where foreigners may lease land and

the shares are not automatically

above, the spouse gets two-thirds of the

homes for a specific period with the

transferred to their beneficiaries. This

estate while the statutory heirs in the

possibility of lease renewal, Dennis

request would have to be considered

applicable class take one-third in

explains that, “if the lessee dies, the

by the company’s Board of Directors

equal shares.

lease terminates and does not pass to

who may have the discretion to refuse.

the heirs. If the lessor dies, the heirs

Also, if the nature of the business is

can take over the rights and obligations

restricted under the Foreign Business

married or there is no surviving

of the lease without the right to renew

Act, the transfer may be refused if its

spouse, the entitled class of statutory

the lease.” In other words, the renewal

effect would cause foreign ownership

heirs inherits the whole estate in

clause is not enforceable by other

of the business to exceed 49%.

equal shares.

parties; heirs cannot force the lessee

If the deceased was not legally

to renew the lease.

Condos, Companies, Leases and Land There may be special conditions that

What about taxes? Dennis says: “There is no inheritance tax

If a beneficiary is bequeathed

or death duty in Thailand but if

land, which generally cannot be owned

land or buildings and certain other

outright by foreigners, the consent of

assets have to be transferred to

apply to property transfer for foreign

the Interior Ministry is required. This

beneficiaries, then Land Department

beneficiaries. For condominiums,

may be granted in certain cases but if

fees and other fees or taxes apply.”

ownership is transferable provided that

permission is refused, the land must

As for the recent news that the

the total number of condos owned by

be sold within a year or transferred to

government is considering the

foreigners in that particular development

a Thai.

country’s first property, land and

does not exceed 49%. If it does, the unit must be sold within a year or transferred to a Thai national.

inheritance tax legislation, Dennis For foreign nationals who acquired an interest in land as minority

responds: “Such laws will probably not come about anytime soon.”