When a person passes away, whether Thai national or foreigner, there are several legal effects on the heirs. Under Thai Law, in the administration of the deceased’s estate, it is necessary to appoint an estate administrator or asset executor whose duties include collecting the assets, settling the deceased’s liabilities, and distributing the remaining estate to the rightful heirs. H&P lawyers in Bangkok specialized in inheritance law have prepares this summary on succession law in Thailand:
Firstly, based on the experience of H&P private clients lawyers, if the heirs reside outside of Thailand there are several documents that will need to be legalized at the MOFA and Embassy of Thailand of the residence of the heirs such as A) POA appointing a lawyer as asset executor B) Family book, marriage certificate or birth certificate among others.
Under Thai Law an estate administrator should be appointed by a court order. Such an appointment may originate from a nomination expressly stated by the decedent in a will, or through the mutual agreement of the statutory heirs. The persons entitled to file this petition to the court for the appointment of an estate administrator include:
- Heirs, either by will or by law;
- Interested parties in the estate, such as an unregistered spouse or a co-owner of the estate assets; or
- The public prosecutor
Any person may be appointed as an estate administrator, and there may be one or more administrators. However, such person must not possess any of the disqualifications as prescribed under Section 1718 of the Civil and Commercial Code. These disqualifications include:
- A person who has not yet reached legal age (minor);
- A person of unsound mind or one who has been adjudged quasi-incompetent by a court;
- A person who has been declared bankrupt by a court.
Such individuals are considered to lack the legal maturity or capacity to manage property effectively, and appointing them as an estate administrator may potentially lead to mismanagement or damage to the estate.
The authority of an estate administrator is considered a personal right. Once appointed by the court, the administrator cannot transfer such authority to another person.
According to Section 1719 of the Thai Civil and Commercial Code, the executor of an estate has the rights and duties to perform any necessary acts in accordance with the explicit or implied instructions in the will, to manage the estate in general, or to distribute the inheritance. The executor manages the estate for the benefit of the heirs and is responsible for distributing the inheritance to them according to their respective shares.
The executor acts not for personal benefit, but solely for the benefit of the heirs. Therefore, the executor is not permitted to enter into any legal transaction in which they have a conflicting interest with the estate, unless such action is authorized by the will or permitted by a court order.
In administering the estate, the executor is required to make reasonable inquiries to identify all interested parties, including statutory heirs and beneficiaries named in the will. Additionally, in Thailand the executor must prepare an inventory of the estate, detailing both assets and liabilities, in coordination with the heirs of the deceased.
The distribution of the deceased’s estate shall proceed by first using the estate’s assets to settle any outstanding debts of the deceased. The remaining assets shall then be allocated to the heirs.
Order of Payment from the Estate of the Deceased (per Sections 1739 and 1754 of the Thai Civil and Commercial Code):
When settling debts from the deceased’s estate, the following order of priority shall be observed:
- Expenses incurred for the common benefit of the estate
- Funeral expenses for the deceased
- Taxes owed by the estate
- Wages or salaries owed by the deceased to employees
- Daily necessities delivered to the deceased
- General debts of the deceased
- Remuneration for the estate administrator
In the case of secured debts (e.g., mortgage, pledge, or other preferential rights), the creditor may enforce against the secured asset directly and is not subject to the above order of priority.
Creditors must file claims for debt repayment within 1 year from the date they become aware of the death or within 10 years from the date of death, whichever comes first.
The proportion each heir receives depends on whether a will has been made. If there is a valid will, the distribution shall follow its terms. If not, the estate shall be divided according to the provisions of the Civil and Commercial Code governing inheritance.
If you need to consult with an inheritance lawyer in Thailand, please contact our private client practice at [email protected]
