Cross-Border Estate Planning Under Thai Inheritance Law

TL;DR Thai inheritance law applies to all assets located in Thailand, regardless of the owner’s nationality. If a foreign national dies without a valid will, the Thai Civil and Commercial Code determines how the estate is distributed among statutory heirs.

For foreigners with property, company shares, or bank accounts in Thailand, relying only on a foreign will may cause probate delays due to translation and legalisation requirements. Preparing a separate Thai will for Thai assets can make the transfer process smoother.

Inheritance tax may apply when inherited assets exceed THB 100 million, with rates of 5% for direct descendants and 10% for other beneficiaries. Early estate planning can help reduce administrative complications for heirs.

Introduction

Thai inheritance law plays an important role for foreign nationals who live, own assets, operate businesses, or maintain financial interests in Thailand.

For many expatriates and international investors, Thailand has become their permanent home and they have invested significantly in property, building companies, and accumulated personal and business assets over time.

However, things become complicated if they maintain assets in Thailand and abroad, for example, their home country. When assets are located across multiple jurisdictions, estate planning becomes more complex. Different countries apply different rules to ownership, succession, and probate procedures. Without a clear plan that considers any applicable legal frameworks, families may face delays, administrative challenges, and unnecessary legal costs when transferring an estate.

For foreign business owners, investors, and long-term residents in Thailand, estate planning and Thai inheritance law should therefore be viewed as an important step in protecting both family interests and long-term financial stability.

This guide explains how Thai inheritance law applies to foreign individuals with assets in Thailand and highlights the key considerations involved in cross-border estate planning. Understanding these rules early can help reduce complications and support an efficient transfer of assets to the intended beneficiaries.

Understanding the Basics of Thai Inheritance Law

Thailand’s inheritance laws are set out in the Civil and Commercial Code, which establishes the rules for the distribution of a deceased person’s assets in Thailand. If the deceased does not have a valid will, the “intestacy” under the Civil and Commercial Code will dictate the order in which statutory heirs in Thailand are entitled to inherit the estate. 

In Thailand there are six classes of statutory heirs as per section 1629 of the Thai Civil and Commercial Code. These statutory heirs, listed in order of priority, are as follows:

1. Descendants (children, grandchildren, etc.)
2. Parents
3. Full-blood siblings
4. Half-blood siblings
5. Grandparents
6. Uncles and aunts

Section 1630 of the Thailand Civil and Commercial Code explains how inheritance is divided among heirs of different classes. 

The estate of the deceased will pass to their heirs based on a hierarchy of classes (as defined in Section 1629 and above). When someone passes away, their estate in its entirety goes first to the highest class of heirs (like children or spouse), as long as there are eligible heirs in that class. 

If there are no eligible heirs in that class, then the estate will pass down to the next class. Lower-class heirs only inherit if no heirs from higher classes are available. For example, if the deceased has children, grandchildren (a lower class) wouldn’t inherit anything unless the children are no longer living or represented.

Exception: The exception applies when there is both a surviving descendant (like a child or grandchild) and at least one surviving parent of the deceased. In this case, the parents have a special right to inherit alongside the descendants, and each parent would receive a share equal to that of a child.

The surviving spouse is also considered a statutory heir, with their entitlement dependent on the existence and class of other heirs. It’s important to note that the spouse may not be entitled to the entire estate, as the law mandates an equal division among the spouse and any surviving children.

Once the statutory heirs have been established, the rules for the distribution rules of the estate are as follows:

• If there are surviving children, the spouse receives 50% of the estate, with the remainder divided among the children.
• If there are no descendants but surviving parents, the spouse also receives 50%, with parents sharing the other half.
• In cases where only siblings or more distant relatives survive, the spouse may inherit a larger share.

Please note that if no statutory heirs in Thailand exist, the estate in its entirety passes to the state.

Read more:

Thailand’s Inheritance Laws: Creating a Will

Applicability of Thai Law to Foreign Nationals and Assets

A common misunderstanding among foreign residents is that Thai inheritance rules apply only to Thai nationals. In practice, Thai inheritance law generally applies to assets located in Thailand, regardless of the nationality of the owner.

When dealing with estates that include assets in multiple countries, Thai courts will typically consider the nature and location of the asset when determining which legal framework applies.

Immovable assets

Assets such as land, buildings, and condominium units are classified as immovable property. As a result, the transfer of ownership following a death must usually follow Thai probate procedures and registration requirements with the Land Department.

For foreign property owners, having a clear estate plan and a will that addresses these assets under Thai inheritance law is highly recommended to protect their assets. This is particularly important when real estate is held through companies with other shareholders. Failing to put proper arrangements in place may jeopardize ownership rights and may even make it impossible for their heirs to effectively claim or transfer those rights.

Movable assets

Movable assets include items such as bank deposits, vehicles, securities, and other personal property. In some situations, the law of the deceased person’s home country may influence how these assets are treated. However, relying on foreign legal documents alone can be challenging in practice. Thai courts may still require supporting documentation such as the original bank books or at least copies, translations, and legal recognition procedures before assets can be transferred.

Company shares and business interests

For foreign investors and entrepreneurs, business interests are another important consideration. Shares in a Thai company are treated as assets located in Thailand. If a shareholder passes away without a clear estate structure, those shares may remain temporarily restricted while probate procedures are completed.

During this period, the company may face administrative limitations depending on its governance structure, particularly if the deceased shareholder played a key role in decision-making or ownership control.

Another important consideration for a foreigner in Thailand who owns a business, having a valid will is highly recommended. If a foreigner has a company in Thailand with their Thai spouse or partner without a valid will, should they die, their assets in Thailand may become subject to Thai laws. In such a case their share of the company could be transferred to their parents or children.

This is problematic because the statutory heirs may not have the knowledge or experience to manage the business effectively, potentially leading to mismanagement or operational disruptions. 

Additionally, if the deceased’s heirs are not aligned with the surviving spouse or partner’s interests, it can result in conflicts and disputes over control of the company. This situation may jeopardize the business’s continuity and financial stability, ultimately affecting employees and stakeholders.

The inheritance of controlling shares in a Thai company can be complex, as these shares do not automatically transfer to the heirs of a deceased shareholder. The company must formally register the new shareholder, and the heirs may need to navigate the company’s internal processes to assume control.

An alternative estate planning strategy is to hold the Thai company shares through an offshore holding company, for example in a jurisdiction such as Hong Kong. In this structure, the foreign investor owns the shares of the holding company, which in turn owns the shares of the Thai operating company. Upon death, the inheritance issues are therefore dealt with at the level of the holding company under the applicable foreign law, rather than directly in Thailand. This approach can provide greater legal certainty, predictability, and flexibility for the transfer of ownership between foreign heirs while maintaining continuity of control over the Thai business.

What are the Implications of the Laws for Intestacy in Thailand for Foreigners?

Dying in Thailand without a well drafted last will and testament could have a significant negative effect on the distribution of the deceased’s assets. Not having a will can materially affect who receives your assets, in what proportion, and when. 

In the absence of a valid will, the assets of the deceased maybe subject to the following issues:

Inheritance Rights

Under Thai law, foreigners can inherit property in Thailand if they are statutory heirs. If the property in question is a Condo (in a building that is under the foreign ownership quota), there will be no problems. However, if the property is considered as land foreign inheritor will face restrictions regarding land ownership.

In Thailand foreigners cannot directly own land inherited from a Thai spouse unless specific legal provisions are met. They must apply for permission from the Minister of Interior to register ownership. 

In practice, the foreigner can inherit the land but must sell it within one year. If the land is not or cannot be sold within one year, the Land Department will sell the land on behalf of the foreigner via public auction or sale.

Potential Conflicts

Foreigners may encounter complications if their family structure does not align with Thai inheritance laws. For instance, if a foreigner has children from multiple relationships or if their spouse is not legally recognized under Thai law, this can lead to disputes over inheritance rights.

Lack of Control

Without a will, foreigners lose control over how their assets are distributed. This means that relatives they may not wish to inherit could receive portions of their estate, while loved ones not recognized under Thai law (such as stepchildren or non-marital partners) may be excluded entirely.

Probate Process

The estate must go through probate in Thailand, which can be complex and time-consuming without clear documentation of the deceased’s wishes. This process requires proving heirship and can lead to delays in asset distribution.

Key Challenges in Cross-Border Estate Planning

Managing an estate that involves assets spread across multiple countries can create practical legal challenges. When assets are located in Thailand but heirs or family members live abroad, different legal systems, probate procedures, and administrative requirements may apply at the same time, often resulting in a conflict of laws. 

Many individuals assume that a will prepared in their home country automatically governs all of their assets worldwide. However, in practice, this is not always the case. Thai authorities may require specific documentation or local court procedures before certain assets can be transferred. This is particularly relevant for immovable property, such as condominiums or land.

There are also several other challenges that are often faced by foreigners when estates involve assets in Thailand.

Probate delays across jurisdictions

When a will is probated in another country, the process can take several months or longer depending on the jurisdiction. During this period, assets located in Thailand such as bank accounts or investment holdings may remain inaccessible until the relevant legal documentation is recognised locally.

Document legalisation and translation

Foreign probate orders, wills, and supporting documents often need to go through multiple steps before they can be used in Thailand. This may include notarisation, legalisation through the relevant embassy or consulate, and certified Thai translations before submission to Thai courts or government offices.

Practical difficulties for overseas executors

Executors appointed in a foreign will may face practical challenges when administering assets in Thailand. Court appearances, document filings, and coordination with local authorities can be difficult to manage remotely, particularly when procedures must be 

Is a foreign will written in another country valid in Thailand?

Whether a will prepared in another country is recognised in Thailand depends on several factors. These include the laws of the country where the will was executed, the requirements of Thai inheritance law, and the legal circumstances of the deceased at the time of death.

In many cases, a will that has been prepared in accordance with the laws of the country where it was signed may be accepted by Thai courts, however, the document must not conflict with Thai legal requirements. Foreigners in Thailand should also be aware that  in practice, the probate process can become more complicated when a foreign will govern assets located in Thailand.

For this reason, foreign residents and investors who hold assets in Thailand are recommended to prepare a separate Thai will covering their Thai-based property and interests. Having a locally compliant will can simplify probate procedures, reduce potential conflicts between legal systems, and help allow assets in Thailand to be distributed according to the testator’s wishes under Thai inheritance law.

How to validate a foreign will to be considered in Thailand

For a foreign will to be enforceable in Thailand, the following steps will be required:

1. Translation: The foreign will may need to be translated into Thai by a certified translator.
2. Authentication: The foreign will may need to be authenticated by the relevant authorities in the country where it was made and the Thai authorities.
3. Probate proceedings: The foreign will may need to go through the proceedings in Thailand to be recognized and enforced in the country. Probate involves presenting the will to the Thai courts and obtaining a grant of probate, which confirms the will’s validity and authorizes the executor to carry out its instructions.

Because of these potential challenges, if you hold assets or business interests in Thailand, a discussion with VB & Partners can help clarify how Thai inheritance law may apply to your situation and whether your current arrangements are appropriate for assets held locally.

Structuring a Valid Will Under Thai Inheritance Law

Foreign investors who have assets in Thailand are highly recommended to have a valid and enforceable will in Thailand. To draft an enforceable will in Thailand, the following needs to be satisfied:

• The will must be written in the Thai language (a translation into another language may be provided for convenience, but the Thai version will prevail in case of conflict and will be the enforceable version).
• The testator must sign the will in the presence of two witnesses who must also sign the will.
  • The witnesses must be at least 20 years old and have the capacity to understand the will’s contents.

• The testator must be mentally competent to make a will and must not have been unduly influenced by others.
• The will must not contain any provisions that conflict with Thai law.
• The will must be dated and include a clear statement of the testator’s intentions regarding the distribution of their property after death.

Things to include in a Thai will

When drafting a will, it is recommended to include the following information and provisions:

1. Identification of the testator (the person making the will): The will clearly state their full name, address, and date of birth.
2. Appointment of an executor: The will should name the person or persons responsible for carrying out the instructions in the will. Due to potential requirement for physical appearances in court or local authorities etc, it is recommended to appoint someone in Thailand
3. Disposition of property: The will should clearly state the testator’s instructions for distributing their property and assets upon death. This should include specific instructions for the distribution of property and general instructions for the distribution of any remaining property and to whom it should go to.
4. Appointment of guardians: If the testator has children who legally cannot live by themselves e.g. children under 18, the will should name a guardian to care for the children should both parents die.
5. Funeral arrangements: The will may include instructions for the testator’s funeral arrangements. For example, the type of service they would like, where they would like it to be held, and who should be responsible for organizing the funeral.
6. Powers of the executor: The will should set out the executor’s powers, including the authority to manage the deceased person’s assets, pay debts and taxes, and distribute property according to the will.
7. Revocation: The will should state that it revokes all previous wills and codicils (amendments to a will).

Tax and Financial Considerations

Inheritance tax in Thailand is a tax imposed on heirs who inherit assets with a value exceeding THB 100 million (approximately 3 million USD). It was introduced under the Inheritance Tax Act B.E. 2558 (2015) as part of the government’s efforts to create a fairer distribution of wealth and to increase state revenue.

This tax applies to both Thai nationals and foreigners, as well as juristic persons registered under Thai law. Any inheritance tax owed depends on the location of the assets and the recipient’s residency or nationality status. 

How is Inheritance Tax Calculated?

To calculate any inheritance tax liability in Thailand, the first step is to assess whether the total value of the inherited assets exceeds THB 100 million (approximately 3 million USD). 

Inherited assets that should be included in the calculation include:

• Immovable property
• Securities in accordance with the Securities and Exchange Act
• Deposited money, or other forms of wealth, where the heir has the right to withdraw it from a financial institution or claim it from a person holding the deposit
• A registered vehicle
• Financial assets to be prescribed by a Royal Decree

Under Section 15 of the Inheritance Tax Act, the value of inherited property is calculated based on its market value at the time of receipt. 

For immovable property, the valuation is based on the official appraisal used for collecting registration fees under the Land Code, with deductions for any third-party rights in accordance with ministerial regulations. Immovable property includes land, buildings, and any permanent fixtures or real rights attached to the land, as defined under the Civil and Commercial Code.

For securities traded on the Stock Exchange of Thailand, the value is determined using the market closing price on the day the inheritance is received. 

Once the value of the estate has been calculated, the taxable amount is determined by calculating the net value of the inheritance. This is done by deducting any outstanding debts or liabilities from the total value of the inherited assets. 

For example, if the value of the estate is THB 150 million, the inheritance tax in Thailand would be calculated as follows: 

Due Tax for Direct Descendants 

1. Identify the taxable amount: For an estate valued at 150 Million THB, the taxable amount is 50 million Thai Baht.
2. Identify the applicable tax rate: For direct descendants of the benefactor, the applicable inheritance tax rate is 5%.
3. Calculate the inheritance tax owed: For this scenario, the inheritance tax in Thailand owed would be THB 2.5 million THB (5% x 50 million). 

Owed Tax for Other Beneficiaries

4. Identify the taxable amount: For an estate valued at 150 Million THB, the taxable amount is 50 million Thai Baht.
5. Identify the applicable tax rate: For non-direct descendants of the benefactor, the applicable inheritance tax rate is 10%.
6. Calculate the inheritance tax owed: For this scenario, the inheritance tax owed would be THB 5 million THB (10% x 50 million). 

Once the inheritance has been received, beneficiaries are required to file an inheritance tax return and pay any tax due within 150 days.

Who is Subject to Inheritance Tax?

Under Section 11 of the Inheritance Tax Act, all persons of Thai nationality, regardless of where they reside are subject to inheritance tax. Inheritance tax also applies to the following:

Foreign Residents of Thailand

Foreign nationals with legal residence in Thailand, as defined under Thai immigration law, are also required to pay inheritance tax on assets they inherit.

Foreign Beneficiaries of Thai Assets

Even if a beneficiary does not reside in Thailand, they are liable for inheritance tax in Thailand if the inherited assets are located within Thailand.

Juristic Persons

Juristic persons registered or incorporated under Thai law are also subject to inheritance tax in Thailand. Additionally, any juristic person where Thai shareholders hold more than 50% of the registered and paid-up capital will have a tax obligation when receiving inherited assets.

Read more:

Inheritance Tax in Thailand: 2026 Expert Guide

Common Mistakes in Cross-Border Estate Planning

Estate planning arrangements for foreign individuals with assets in Thailand often face several recurring issues. These situations can create unnecessary complications for family members when assets need to be transferred or administered.

Relying on a single foreign will

Many individuals assume that a will prepared in their home country automatically governs all of their global assets. While this may be the case in some jurisdictions, assets located in Thailand often require separate local procedures. Without a structure that addresses Thai-based assets specifically, probate can become more complicated and time-consuming.

Lack of clarity regarding important documents

In some cases, family members or executors are unaware of where the original will or supporting documents are stored. When estates involve multiple jurisdictions, locating the original documents becomes particularly important, as courts and authorities often require original versions before proceeding with probate.

Delaying estate planning

Estate planning is often postponed simply because it does not appear urgent. However, once assets or business interests have been established in another jurisdiction, addressing inheritance planning early can help reduce administrative issues for family members in the future.

Taking time to organise estate arrangements while circumstances are stable allows individuals to approach cross-border planning in a more structured and practical way.

How Professional Advisory Support Strengthens Your Plan

Cross-border estate planning involves more than preparing legal documents. It also requires clear financial records, accurate accounting, and compliance with local regulatory requirements. By properly preparing your accounts and records, your heirs will have a much easier time when it comes to probate and distributing any assets.

When assets include Thai companies, bank accounts, or other financial interests, proper financial documentation becomes an important part of the overall planning process.

VB & Partners works with foreign investors, entrepreneurs, and expatriates to manage the accounting and compliance aspects of operating in Thailand. Maintaining accurate financial records, properly prepared accounts, and up-to-date corporate filings can make a significant difference when assets need to be reviewed, valued, or transferred as part of an estate.

For business owners in particular, organised accounting records and proper company filings help reduce uncertainty for heirs and administrators. Clear financial documentation can support probate procedures, assist with share transfers, and provide transparency regarding the value and structure of the estate.

Our Thoughts

For foreign investors and long-term residents, estate planning should be part of their overall financial planning in Thailand. Individuals who build businesses or acquire assets in Thailand often invest significant time and resources into those interests, and it is important to protect these assets so they can be transferred smoothly to their heirs.

In practice, any foreigner living in Thailand or holding assets in Thailand should have a will prepared under Thai law. Without a Thai will, the transfer of assets such as property, company shares, or bank accounts can become complicated and time-consuming for heirs.

If the foreigner holds shares in a Thai company, it may also be advisable to consider holding those shares through a foreign holding company, for example in a jurisdiction such as Hong Kong. This allows the inheritance of the foreign shareholder’s interests to be handled at the level of the holding company under foreign law, which often provides more predictability and flexibility for the transfer of shares between heirs.

We regularly assist clients with preparing Thai wills and, where appropriate, structuring shareholdings through holding companies as part of their estate planning.

Our Thoughts

Do foreigners need a Thai will?

Foreign nationals who own property, bank accounts, or company shares in Thailand are strongly advised to prepare a Thai will. While a foreign will may sometimes be recognised, the probate process can become more complicated because documents may require translation, legalisation, and validation by Thai courts. A Thai will that specifically covers Thai assets can make the transfer process significantly smoother for heirs.

Is a foreign will valid in Thailand?

A will prepared in another country may be recognised in Thailand if it was executed in accordance with the laws of the country where it was signed and does not conflict with Thai legal requirements. However, the document will usually need to go through Thai probate proceedings and may require certified translations and authentication. For this reason, many foreign residents choose to create a separate will covering assets located in Thailand.

What happens if someone dies without a will in Thailand?

If a person dies without a valid will, Thai inheritance law distributes the estate according to statutory heirs listed in the Civil and Commercial Code. These heirs are ranked in the following order:

1. Descendants (children and grandchildren)
   
2. Parents
   
3. Full-blood siblings
   
4. Half-blood siblings
   
5. Grandparents
   
6. Uncles and aunts
   

A surviving spouse is also entitled to inherit and will share the estate with other heirs depending on the circumstances. Without a will, the deceased has no control over how the estate is divided.

Can foreigners inherit property in Thailand?

Foreigners can inherit certain types of property in Thailand. Condominium units within the foreign ownership quota can generally be transferred to foreign heirs without restriction.

Land ownership is more complicated. While a foreigner may inherit land, they are typically required to dispose of the land within one year unless they qualify under a specific legal exemption.

How long does probate take in Thailand?

Probate proceedings in Thailand usually take several months, although the timeframe can vary depending on the complexity of the estate and the completeness of the documentation. If assets are located in multiple countries or if a foreign will must be recognised by the Thai court, the process may take longer.

Is there inheritance tax in Thailand?

Thailand imposes inheritance tax when the value of inherited assets exceeds THB 100 million. The applicable tax rates are:

• 5% for direct descendants such as children
  
• 10% for other beneficiaries
  

Beneficiaries must file an inheritance tax return and pay any tax due within 150 days of receiving the inheritance.

How can foreign business owners protect Thai company shares in an estate?

Shares in a Thai company are treated as assets located in Thailand and may be subject to probate before they can be transferred to heirs. Foreign investors sometimes structure ownership through an offshore holding company so that the inheritance of the holding company shares is governed by foreign law rather than directly under Thai inheritance procedures.

Disclaimer

This information is provided for general informational purposes only and is not legal, tax, or financial advice.