Navigating inheritance laws and taxes in any country can seem both uncomfortable and complicated. Thailand is no different, but it doesn’t have to be. And getting a head start on your education may reduce stress down the road.
The Fundamentals of Inheritance Law in Thailand
Like many countries, the last will and testament is at the core of inheritance law in Thailand. When a legal will is appropriately established, the conditions must be observed.
If there is no last will and testament, the principles laid out in the 1925 Thai Civil and Commercial Code apply. Section 1629 of this document clearly defines the succession path in the event that there’s no will, beginning with direct descendants.
Spousal inheritance rules are outlined in section 1635 and are more complicated. They receive a different amount depending on which class of heirs from section 1629 are alive. At the first stage, they share the inheritance equally with the children. In the next stages, they collect larger and larger portions of the total. This applies to foreign spouses.
Property inheritance follows similar principles as long as it doesn’t conflict with the Land Code Act. In particular, this act still doesn’t allow alien registration of land ownership, so anything inherited must be sold within one year. Condominiums are subject to the Condominium Act.
Writing the Will and Testament in Thailand
Anyone can write a legally recognized will and testament in Thailand by their own hand as long as they are at least 15 years old and follow the principles outlined in chapter 2 of the Thai Civil and Commercial Code. Here are some of the different legally recognized methods of writing a will in Thailand:
- Writing by your own hand in the presence of two witnesses. All three parties sign and date the document.
- A “holographic will” which is written, signed, and dated only by the owner of the will. This type of will may not be recognized abroad.
- A public will which is submitted to the District (Amphoe) office in the presence of an official and two witnesses.
- A secret will which is sealed and submitted to the Amphoe office in the presence of an official and two witnesses.
When completing a last will and testament in Thailand, most of the usual steps must be completed. Some of these include designating an executor and listing their address, listing your assets and how they’re to be assigned, appointing guardians for minors, and setting up your preferred succession pattern.
Who Are Considered Statutory Heirs to Property Under Thai Inheritance Law?
Under Thai inheritance law outlined in section 1629 of the Civil and Commercial Code, the following are considered statutory heirs to property in the absence of a will:
- Direct descendants (children, grandchildren, great-grandchildren)
- Parents
- Full-blood siblings
- Half-blood siblings
- Grandparents
- Uncles and aunts
According to section 1630 of the Civil and Commercial Code, if a person at any step along the succession line is alive and accessible, all people below are ineligible.
Whether foreign or Thai, spouses are considered statutory heirs as outlined in section 1629 with inheritance rights.
Can an Heir Be Disinherited From a Will?
Yes, an heir can be disinherited from a will if the subject of the will submits an official change to the will according to section 1608 of the Civil and Commercial Code. Any statutory heirs outside of descendants and spouses are also automatically disinherited if someone in the class above them inherits.
Conditions for the Appointment of an Estate Administrator to Heirs in Thailand
Whether or not a deceased person leaves behind a will, heirs and interested parties can apply to the courts to be appointed as an estate administrator under the probate process in Thailand as long as they meet the following conditions:
- They are not bankrupt according to the court
- They are of competent, sound mind
- They are 20 years old or over
In addition, several documents may be required for the estate administrator application:
- Death certificate
- Marriage certificate (in the case of spouses)
- Birth certificate of heir(s)
- List of relatives
- List of assets
- Proof of residence of the decedent at time of death
The order of final judgment typically takes 3-4 months as long as no other party puts in a request.
Steps in the Probate Process in Thailand
There are 6 steps in the probate process in Thailand:
- Reviewing the facts around the deceased with the help of an attorney, including estate assets and the presence of a will.
- Having the attorney assess any legal heirs, debts and other information regarding the estate.
- Having the attorney file an application to initiate the probate process with the courts.
- Preparing a testimonial in Thai with your attorney.
- Beginning of the court examination with client and attorney present.
- Waiting for the final decree which takes 30 days.
Duties of an Estate Administrator According to Inheritance Law in Thailand
There are 3 main duties of an estate administrator according to inheritance law in Thailand:
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- Assessing the assets of the deceased within 15 days of the death or appointment as the estate administrator.
- Settling the debts and taxes of the deceased.
- Distributing the assets according to a will or succession order which may include real estate ownership transfers.
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What Is Inheritance Tax in Thailand?
Inheritance tax in Thailand is 0% for spouses, 5% for parents or descendants, and 10% for any other heir. However, this tax is only applied on total assets exceeding 100 million Thai baht.
The 2015 Inheritance Tax Act governs inheritance in Thailand and applies in different situations to Thai and non-Thai citizens. It covers many different asset classes such as cash, securities, and inherited property.
Inheritance Tax and Transfer Fees on Real Estate Transferred While Alive
Real estate transferred while alive is not subject to inheritance tax. Instead, there are three cases with different levels of land transfer fees that apply according to Thai tax and property law.
| Case | Fees and Taxes |
| Legitimate children |
|
| Non-legal children |
|
| Relatives other than children |
|
Inheritance Tax and Transfer Fees on Real Estate Transferred After Death
Real estate transferred after death is subject to inheritance tax and transfer fees, but not stamp duty and income tax. The tax rate depends on where you are in the line of succession.
| Case | Fees and Taxes |
| Spouses |
|
| Full-blood descendants and parents |
|
| Other heirs including adopted children |
|
Does Inheritance Tax Apply to Foreigners in Thailand?
Yes, inheritance tax applies to foreigners in Thailand on assets exceeding 100 million baht unless they were a spouse of the deceased.
What Type of Real Estate Are Foreigners Allowed To Acquire in Thailand?
Foreigners qualify for the following types of real estate ownership in Thailand:
- Freehold condos
- Leasehold condos
- Land if it’s in the name of a company – land owned in this way must follow an investment in local Thai assets of at least 40 million baht from abroad over 5 years and can be no more than 1 rai (1,600 square meters) according to Section 96 of the Land Code Act
FAQs
Are Foreign Wills Valid in Thailand?
Yes, foreign wills are valid in Thailand, but they are subject to official translation and review in Thai courts. This may take a long time, so having a Thai will is advised.
Can You Avoid Inheritance Tax Via Trusts in Thailand?
No, you cannot avoid inheritance tax via trusts in Thailand. Section 1686 of the Thai Civil and Commercial Code states that trusts set up before or after death are not effective as far as the will is concerned.
Is There Gift Tax in Thailand Separate From Inheritance Tax?
Yes, there has been a gift tax of 5% in Thailand since February 2016, the same year that the new inheritance tax rules were first implemented. The gift tax applies to the following:
- Immovable property given to children valued above 20 million baht
- Cash, shares, and valuables with a few exceptions. For example, gifts to ancestors, descendants, or spouses that don’t exceed 20 million baht, gifts given for some moral responsibility like a ceremony or special occasion under 10 million baht, and gifts for educational, religious, or public spending.
Looking to learn more about property inheritance? Contact PropertySights Real Estate experts today for all of your Thai real estate needs.
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