At Business in Siam, we understand the sensitivity surrounding succession.
Succession in Thailand
In Thailand, the laws governing succession are complex and can be confusing, not understanding it fully can hurt your asset.
Our team at Business in Siam specializes in Thai Laws regarding Succession for foreigners.
What do you do when someone passes?
When a person dies in Thailand, the first step is to determine whether or not they left a will. If the deceased left a valid will, the contents of the will must be followed. If the deceased did not leave a will, then the statutory law and customary law will govern the distribution of the deceased’s assets.
Under Thai law, there are three types of heirs: statutory heirs, designated heirs, and non-designated heirs. Statutory heirs are those who are entitled to inherit under the Civil and Commercial Code. Designated heirs are those who are named in a valid will. Non-designated heirs are those who are not named in a will but may be entitled to inherit under customary law.
Statutory heirs are entitled to inherit according to the Civil and Commercial Code. The following persons are statutory heirs in Thailand:
- Descendants – Children and grandchildren of the deceased are entitled to inherit.
- Spouse – If the deceased was married at the time of death, the surviving spouse is entitled to inherit.
- Parents – If the parents of the deceased are alive, they are entitled to inherit.
- Siblings – If the deceased had no descendants, spouse, or parents, the siblings are entitled to inherit.
In cases where there are multiple heirs, the inheritance is divided equally among them. If one of the heirs has predeceased the deceased, their share is divided among their descendants.
If the deceased left a valid will, the designated heirs named in the will are entitled to inherit. The will must meet certain requirements to be valid, including being in writing, signed by the testator, and witnessed by at least two witnesses who are not beneficiaries under the will.
In addition to statutory and designated heirs, non-designated heirs may also be entitled to inherit under customary law. Customary law is based on traditions and practices that have been passed down through generations, particularly among the Thai people.
Under customary law, non-designated heirs may include parents, siblings, grandparents, aunts, uncles, and other close relatives of the deceased. The rights of non-designated heirs are determined based on factors such as their relationship to the deceased, their financial needs, and their contributions to the deceased’s welfare during their lifetime.
In Thailand, the probate procedure is the legal process by which the deceased’s assets are distributed to their heirs. The probate procedure is governed by the Probate Code.
The probate procedure begins with the filing of a petition for probate with the appropriate court. The petition must include a copy of the deceased’s will, if one exists, and a list of the deceased’s assets and liabilities. The court will then issue a summons to all interested parties, including heirs and creditors, to appear at a hearing.
Tax Implications of Succession in Thailand
In Thailand, inheritance tax was abolished in 2020. However, there may still be tax implications associated with the transfer of assets and property upon a person’s death. For example, there may be capital gains tax or transfer tax on the sale or transfer of certain assets.
Consult Us for details on how to plan for your Successions.
Consult with our team now!!
Business in Siam provides independent advice and services for companies and individuals, on all aspects related to Thailand