Estate Planning in Phuket: What is it and Why is it important?

 
For many people, estate planning in Phuket and the preparation of a last will and testament is a dreaded thought and something that is rather avoided. However, it is certainly advisable to settle such affairs and this holds true in particular if you have property in Thailand.

Here’s a few things that you should consider when or if you have property in Thailand.

What Is Estate Planning in Phuket?

Estate planning in Phuket involves preparing for a person’s finances in case they become unable to make decisions or pass away. This includes distributing assets to beneficiaries, settling taxes and debts, and making arrangements for the care of minors and pets. Many people seek the assistance of an estate lawyer to create their estate plans, which often involve tasks such as listing assets and debts, reviewing accounts, and drafting wills.

Are Wills Considered Important in Thailand? And Why?

In Thailand, if a will is not prepared, the law determines how the estate will be distributed. The Thai Civil and Commercial Code and the Thai Act on Conflict of Laws govern succession and international issues related to inheritance.

According to statutory laws the following (in order) will inherit any asset that hasn’t been listed in his will. 

• Descendants
• Parents 
• Brothers and sisters of full blood
• Brothers and sisters of half blood
• Grandparents
• Uncles and Aunts

However, the surviving spouse is considered a statutory heir in Thailand, and their share of the inheritance depends on the number and type of other statutory heirs. Thai law does not have a concept of a mandatory share, allowing any heir to be disinherited completely.

Why is a will recommended? 

If there is no will, statutory heirs must prove their relationship to the deceased. As a matter of fact, they will have to hire a lawyer to represent them in a court hearing. These can be definitely avoided if you prepare a will as it can be a hassle if the statutory heirs are living outside the country at the time of death. You can also list the following in a will:

1. Bank accounts
2. Real estate property
3. Investment assets
4. Digital assets
5. Businesses
6. Pets
7. Personal items

This will help lessen the blow when it comes to relatives fighting over their inheritance after your death. 

Understanding What Is Probate and How You Can Protect It?

When someone passes away without leaving clear instructions on who gets their belongings, it can cause a lot of confusion. In Thailand, there are laws that decide how everything gets divided up. This is called probate.

Probate is like a process that makes sure everything is done properly after someone dies. Here’s what it involves:

• Checking everything: First, they make sure that all the things the person owned really belonged to them. If there are any arguments about it, they sort it out.

• Sorting out money matters: They also look into whether there are any taxes or debts that need to be paid. Once that’s done, they make sure the debts are taken care of.

• Dividing up belongings: Finally, they make sure that the person’s belongings go to the right people. This includes if some of those people are in other countries. So, if someone wants their favourite necklace to go to their niece who lives far away, they make sure it happens.

Summary or Simplified Probate

In some places, there’s a quicker way to handle someone’s belongings after they pass away, called simplified probate. Here are some situations where this simpler process might be an option:

• If the person didn’t have a lot of belongings
• If they’ve been gone for a while, like two years
• If nobody they owed money to wants to claim their stuff
• If everything they owned goes to their husband or wife

This simpler process is sometimes called simplified or summary probate. It’s faster because it skips some of the formal steps of the regular process. If you’re not sure if simplified probate is an option for you, a probate lawyer who knows the rules in the area where the person lived can help you figure it out.

The Estate Planning in Phuket Process

Estate planning in Phuket is about deciding what happens to your things when you’re not here anymore. It’s not just for rich people – anyone can do it! Your estate is everything you own, like your house, car, money, and even your debts. When you plan your estate, you decide who gets what when you’re gone. You also think about what should happen if you’re not able to manage your things because you’re sick or hurt. People do estate planning in Phuket for different reasons, like keeping their family’s money safe, making sure their spouse and kids are okay, paying for their kids’ school, or giving money to charity.

The first big thing in estate planning in Phuket is writing a will. But there are other important things to do too, like:

• Limiting estate taxes by setting up trust accounts in the names of beneficiaries
• Establishing a guardian for living dependents
• Naming an executor of the estate to oversee the terms of the will
• Creating or updating beneficiaries on plans such as life insurance, IRAs, and 401(k)s
• Setting up funeral arrangements
• Establishing annual gifting to qualified charitable and non-profit organisations to reduce the taxable estate
• Setting up a durable power of attorney (POA) to direct other assets and investments

The following serves as a checklist when it comes to estate planning in Phuket:

• Write down everything you own – Include things like your house, any gold or silver you have, and all your money in the bank or from insurance.

• Write down everything you owe – This means all the money you’ve borrowed.

• Make copies of these lists – If you have more than one person you want to give your stuff to, make copies so they each have one.

• Check your retirement accounts – This is really important, especially if you’ve said who gets the money when you’re gone. It doesn’t matter what your will says for these accounts.

• Check your insurance and other money plans – Make sure the people you’ve said should get the money are still the right ones.

• Share your money accounts with someone else – If you put someone else’s name on your bank accounts, the money goes straight to them when you’re gone. It’s the same with special plans for after you die.

• Pick someone to take care of your money when you’re gone – Choose someone you trust to handle your money after you die.

• Write down what you want to happen when you die – Wills aren’t just about money – they can also say who should look after your kids or pets, and you can give money to charity too.

• Look over your papers every few years – Make changes if you need to.

• Give a copy of your will to the person you picked to handle your money – This makes sure they know what you want to happen.

• Talk to someone who knows about money – They can help you decide what to do with your money so you get the most out of it.

• Put all your money in one place – It’s easier for you and your family if everything’s together.

• Get other papers ready too – As you get older, you might need more papers, like ones that say who can make decisions for you if you can’t.

• Think about saving money in other ways – There are special plans that can save you money on taxes and help your family too, like plans for your grandkids’ college.

Protect Your Legacy with Andaman Apex 

At Andaman Apex, we know a lot about Thai estate law and understand the challenges expatriates face here. Our experienced team uses clear legal language, speaks different languages, and focuses on business to help you with estate planning in Phuket. We make sure your belongings are safe and your wishes are respected.

Don’t leave your hard work to chance. With Andaman Apex, we’re here to help keep your legacy safe in Thailand. We’ll create a plan that’s just right for you, making sure your wishes are followed, your stuff is safe, and your family is taken care of. Get in touch with us today to talk about your future and what you want to leave behind.

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