Category: Thailand

Last Will and Testament in Thailand

Last Will and Testament in Thailand. Succession law in Thailand is governed by Book VI of the Civil and Commercial Code (CCC), which provides detailed statutory guidance on inheritance, wills, probate, and heirship. In Thailand, a Last Will and Testament serves as the primary legal instrument through which a person, known as the testator, directs the distribution of their estate upon death. Both Thai citizens and foreigners domiciled or owning property in Thailand are permitted to execute wills under Thai law.

This article provides an in-depth legal and procedural overview of wills in Thailand, including valid formats, capacity requirements, formalities, revocation, probate, and cross-border legal issues.

I. Legal Basis and Governing Statutes

The legal framework is primarily derived from:

  • Sections 1599–1755 of the Thai Civil and Commercial Code (CCC)
  • The Civil Procedure Code, governing court processes for probate
  • Relevant ministerial regulations concerning estate tax and notarization

Succession in Thailand may be testate (with a valid will) or intestate (without a will). If a person dies without a valid will, the estate is distributed to heirs under the default order of succession set forth in Section 1629 of the CCC.

II. Testamentary Capacity and Restrictions

Under Section 1703 of the CCC, a person making a will must:

  • Be at least 15 years old
  • Be of sound mind
  • Be acting voluntarily and without coercion

Certain individuals, such as persons under guardianship or declared incompetent by court order, are barred from making wills. Testamentary freedom in Thailand is broad, but forced heirship does not apply; the testator is not legally required to leave any minimum portion of the estate to family members.

III. Valid Forms of Wills under Thai Law

Thailand recognizes several legally binding will formats, each with specific requirements. The most common are:

1. Ordinary Written Will (Section 1656)

  • Must be in writing
  • Must state the date
  • Must be signed by the testator
  • Requires two witnesses, present simultaneously, who must also sign
  • Witnesses must be over 20 and competent

This is the most widely used and recommended format due to its flexibility and relative simplicity.

2. Holographic Will (Section 1657)

  • Must be entirely handwritten, dated, and signed by the testator
  • No witnesses required
  • Invalid if typed or partially typed

3. Public Will (Section 1658)

  • Declared orally before a District Officer and two witnesses
  • Official records the content and obtains signatures

Less common but advantageous in terms of security and legal certainty.

4. Secret Will (Section 1660)

  • Written, sealed, and presented to the District Officer in the presence of two witnesses
  • Rarely used due to procedural complexity

IV. Content of a Thai Will

A valid will typically contains the following elements:

  • Full legal name and ID/passport of the testator
  • Revocation clause for any prior wills
  • Specific bequests of property (both real and movable)
  • Appointment of an executor and alternate executors
  • Provisions for minors or dependents, including guardianship
  • Residue clause (to cover remaining assets)
  • Signature and witness information

While not required, Thai language is advisable, or an official translation should accompany a foreign-language will for ease of probate.

V. Property Covered by a Thai Will

A will executed under Thai law can apply to:

  • Real estate (e.g., land, condominiums, leaseholds)
  • Movable property (e.g., vehicles, bank accounts, personal effects)
  • Shares in Thai companies
  • Claims and receivables located in Thailand

Foreigners may draft a will covering only their Thai assets while retaining a separate will in their home jurisdiction for assets abroad. This helps avoid probate conflicts and delays.

VI. Revocation and Invalidity

A will may be revoked:

  • Expressly by a new will or declaration (Section 1695)
  • Impliedly by inconsistent provisions in a newer will
  • By physical destruction of the will with intent to revoke

A will is void if:

  • Executed without meeting formal requirements
  • Signed under duress, fraud, or undue influence
  • Witnesses are also beneficiaries (their gift becomes void)

Revocation must be carefully managed to avoid dual wills being considered simultaneously valid.

VII. Probate and Estate Administration

Thailand requires judicial probate for the administration of estates. The process is governed by the Civil Procedure Code, typically requiring 6–12 months.

Probate Procedure:

  1. Filing of Petition: Filed with the court having jurisdiction over the testator’s residence or location of assets
  2. Hearing: Public notice issued; interested parties may contest
  3. Court Appointment of Executor: Court validates the will and authorizes an executor
  4. Asset Inventory and Debts: Executor gathers the estate and pays outstanding debts
  5. Distribution: Assets distributed per will provisions
  6. Final Report: Executor submits closing account to the court

Foreign wills may also be submitted but must be translated and legalized, and may face additional scrutiny if not in conformity with Thai law.

VIII. Intestate Succession (No Will)

If a person dies without a valid will, the CCC imposes an order of priority:

  1. Descendants (children, grandchildren)
  2. Parents
  3. Siblings of full blood
  4. Siblings of half blood
  5. Grandparents
  6. Aunts and uncles

The spouse shares the estate with the highest-ranked heir group. If no heirs are located, the estate escheats to the State under Section 1623.

IX. Foreigners and Wills in Thailand

Foreign nationals can execute valid wills in Thailand for their Thai-based assets. Considerations include:

  • Condominium ownership: May be bequeathed to foreigners, subject to quota compliance
  • Leased property: Lease rights are inheritable if allowed by the contract
  • Bank accounts: Thai banks typically require probate judgment to release funds
  • Company shares: Transfer of shares in Thai companies must comply with the company’s Articles and shareholder agreements

A foreigner should consult with legal counsel to avoid jurisdictional overlap or invalidation.

X. Executor Duties and Liabilities

The executor of a Thai will is responsible for:

  • Securing and inventorying the estate
  • Paying legitimate debts and taxes
  • Distributing assets as directed by the will
  • Filing reports with the court

Executors may be held liable for mismanagement or self-dealing. While foreigners may act as executors, practical difficulties (e.g., language, presence in Thailand) can arise, making it advisable to appoint a trusted local representative or law firm.

Conclusion

The law of wills and succession in Thailand is formal, codified, and judicially administered. Drafting a Last Will and Testament in Thailand requires compliance with specific formats and execution rules. Whether Thai or foreign, individuals with assets in Thailand are strongly advised to prepare a valid Thai will to ensure that their estate is administered according to their intentions, minimize disputes, and avoid delays in probate.

Cross-border estate planning should be handled with careful coordination between Thai and home-country legal frameworks to prevent inconsistency, invalidation, or double probate procedures.

Foreign Business Act

The Foreign Business Act (FBA) B.E. 2542 (1999) is the primary law governing foreign investment in Thailand. It defines which business activities are restricted or regulated for foreign entities and establishes the process for obtaining the necessary approvals to conduct business. The FBA aims to protect local industries while promoting foreign investment in key sectors under specific conditions.

1. Definition of a Foreign Business

Under the FBA, a foreign company is defined as:

  1. A company registered outside Thailand.
  2. A Thai-registered company in which foreigners hold 50% or more of shares.

Foreign businesses must comply with FBA regulations unless they qualify for exemptions through Board of Investment (BOI) promotion, the Treaty of Amity (for U.S. investors), or other international agreements.

2. Restricted Business Activities

The FBA categorizes restricted activities into three lists, with different levels of foreign ownership restrictions.

2.1 List 1: Completely Prohibited to Foreigners

Foreign businesses cannot engage in these activities due to national security, cultural preservation, or strategic importance. Examples include:

  • Media and newspaper publishing.
  • Rice farming, livestock, and fishing.
  • Land trading (except BOI-approved projects).

2.2 List 2: Restricted for National Interests

Foreign ownership is allowed only with Cabinet approval and requires at least 40% Thai shareholding. This includes:

  • Industries affecting national security (e.g., aviation, telecommunications).
  • Mining and large-scale infrastructure projects.

2.3 List 3: Restricted Unless a Foreign Business License (FBL) is Obtained

Foreigners can engage in these activities if they secure an FBL from the Ministry of Commerce. Examples include:

  • Retail and wholesale trade.
  • Construction services.
  • Advertising and legal services.

3. Foreign Business License (FBL) Process

To operate a restricted business under List 3, foreign companies must apply for an FBL from the Department of Business Development (DBD).

3.1 Key Requirements for FBL Approval:

  • Demonstrating economic benefits to Thailand.
  • Providing technology transfer or expertise to Thai employees.
  • Investing in infrastructure and contributing to national development.

Approval can take 3–6 months, and rejection is possible if local competition is significantly affected.

4. Exemptions from the Foreign Business Act

Certain foreign businesses are exempt from FBA restrictions under special agreements:

4.1 Board of Investment (BOI) Promotion

The BOI grants foreign companies exemptions from the FBA if they operate in targeted industries, such as:

  • Advanced manufacturing.
  • Technology and digital innovation.
  • Green energy projects.

4.2 Treaty of Amity (For U.S. Businesses)

Under the U.S.-Thailand Treaty of Amity (1966), American companies can own 100% of businesses in most sectors, except for land ownership and restricted industries.

4.3 ASEAN Agreements

Under ASEAN frameworks, certain businesses from ASEAN member states enjoy relaxed ownership restrictions compared to non-ASEAN investors.

5. Penalties for Non-Compliance

Operating a restricted business without a proper license can result in:

  • Fines of up to 1 million THB.
  • Forced business closure.
  • Deportation for foreign business owners violating the law.

6. Future Developments and Investment Trends

The Thai government periodically revises the FBA to attract investment while protecting local businesses. Recent trends include:

  • Potential relaxation of foreign ownership rules in the retail sector.
  • Easing restrictions in digital and technology-driven businesses.
  • Encouraging foreign investment through tax incentives and BOI reforms.

Conclusion

The Foreign Business Act (FBA) plays a crucial role in regulating foreign investment in Thailand. While it restricts ownership in certain industries, foreign businesses can operate freely through BOI promotions, FBL applications, and treaty exemptions. Companies looking to establish operations in Thailand must carefully evaluate the legal framework and compliance requirements to ensure smooth business operations.