Trusts are an area of law in which concerns the holding of property in which can be a real property, tangible or intangible asset which can be an existing or even sometimes a future asset which is to be received by another, for another individual.
Generally, Trusts only exists in common law systems. However, in Thailand, since this is a Civil Law system, there is generally no law of trusts that exists in Thailand. Despite the fact of existence however, Trust has been introduced in Thailand and governed mainly by a mere code namely section 1686 of the Civil and Commercial Code which states, ‘Trusts created directly or indirectly by a Will or by any juristic act producing effect during the lifetime or after death shall have no effect whatsoever.’
For this reason, trust law does not usually exist in Thailand, therefore it can be concluded that there is no beneficial ownership of land but merely legal ownership of land once registered to be the owner, you are then the owner and not the beneficial owner of property for someone else.
In stating that however, it is permitted by sections 1687 of the Civil and Commercial code that a testator may appoint a ‘controller’ of assets in their will in the event that the beneficiary is a minor, incompetent, quasi-incompetent or a person of unsound mind who has been admitted into the hospital.There are various factors and requirements that come along with this section.
We advise individuals and corporate executives on matters regarding estate and trust administration. Our trust and estate services include a comprehensive and incessant analysis of the clients’ assets and incomes in relation to their financial and personal goals. We also advise individuals and trustees on estate, gift and tax planning and asset protection planning. We draft wills and probate estates, establish and terminate trusts and form and advise charities. Additionally, we litigate matters involving all aspects of fiduciary liability, will and trust disputes and gift, death and fiduciary income tax disputes. Our attorneys also engage in a wide variety of other types of litigation that arise in the context of probate or trust administration. We prosecute and defend fiduciary misconduct claims and accounting challenges.
There are various disputes that arise in relation to trusts in Thailand due to the reason that not many foreigners know about the laws that are based on Trusts in Thailand and assume that this is legal in all circumstances. However, there is no standing as to such law existence. For this reason it is suggested that you contact a professional in order to obtain the correct advice based on your circumstances.
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