Prohibited Assets in Thailand from Inheritance
Permitted and Prohibited Assets From Inheritance
Debts and obligations can be inherited by the heir under the Thai Civil and Commercial Code (TCCC). However, Sections 1601 and 1734 of the TCCC define these terms as liabilities and limitations on heirs, ensuring that they are not being burdened by excessive debts:
- Section 1601 exempts the heir in paying debts with the value greater than the inherited assets.
- Section 1734 allows the testator to settle debts by paying with the inherited properties before distributing to the heirs.
For instance, the testator had a debt of 5 million baht but intended to give the heir a house with the value of 4 million baht as inheritance. The creditor can claim the 4 million baht debt, which was equivalent to the value of the house. As a result, the heir is not responsible for paying the remaining 1 million baht to clear off any outstanding obligations.
Tangible and intangible properties can be designated as inheritance to the heirs under the TCCC on Books 4 to 6:
- Tangible properties have to be physical as defined by Section 137 of the TCCC including animals, gold bars, houses, rings, and clothes.
- Intangible properties have to be rights or obligations with a substantial value. For instance, the right under the sale purchase contract, the right under the hire-purchase contract, the right to redeem property under the consignment sale, copyright, trademark, and patents.
List of Assets Prohibited From Inheritance
The Thai laws on succession and inheritance permit most of the rights and obligations to be inherited by the testator towards the heirs. However, there are some exceptions:
- Life insurance contracts.
- Interests from dividends that arise after the death of the testator.
- Retirement funds.
- Gifts specifically given to the individual by the testator prior to death.
- Properties obtained through criminal activities.
Prescription: Debts as Inheritance
When the death of the testator is known or supposed to be known by the heirs, the plaintiff has 1 year to file a complaint with the court on the inheritance dispute, from the date of the death of the testator. Hence, the plaintiff cannot file the lawsuit once the period has lapsed.
Should you have inquiries regarding Inheritance Law in Thailand, don’t hesitate to contact us. Our team of Thai and international lawyers is dedicated to assisting you in every possible way.
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