What legal steps should an American expat take when buying a house in Thailand with a Thai spouse, particularly regarding usufruct rights and inheritance?

Sep 29, 2023
a year ago
Matthew **********
ORIGINAL POSTER
Update: We met with our lawyer. Wills for both my wife and I. My wife will have a trust and I (trustee) shall have the right to sell or stay the rest of my life if my wife passes. Our Thai heir (my wife's wonderful cousin) will get the house when we both pass. A document and video will be made omitting all other family rights to the property. Usufruct agreement will be done at the Land Office. --- Many thanks to everyone who shared their knowledge and experience. You helped me come into the meeting with solid notes and questions.

My wife (Thai) and I (American) are buying a house in Bangkok. Apparently, an annotation on the back of the deed will allow me to reside in the house and own the financial investment if my wife precedes me in death.

Anyone done this?

We are meeting with a lawyer soon to sort out the details, as well as have a will made.

Thanks.
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TLDR : Answer Summary
An American expat and his Thai wife are navigating the complexities of buying a house in Bangkok. They discuss the legal arrangements necessary to ensure the American spouse can reside in the home and manage the investment in the event of the wife's passing. Key legal terms mentioned include usufruct, which allows the foreign spouse to live in the property without owning the land, and the importance of wills and trusts to protect their interests. Various commenters share their experiences and legal strategies, emphasizing the necessity of consulting with a lawyer to navigate Thai property laws.
Brad **********
F
Ken ******
and not too sure if the new tax policy on worldwide income starting next year any impact
Matthew **********
ORIGINAL POSTER
@Ken *****
Is that an American or Thai policy?
Ken ******
@Matthew *********
oh

Thai , US been doing that all along
Matthew **********
ORIGINAL POSTER
@Ken *****
Do you know what changes next year?
Ken ******
@Matthew *********
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Ken ******
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Ken ******
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Ken ******
browse the youtuber integrity legal first, it is a law firm with lots of advice or info on visa and thailand new tax policy etc
Daren *********
Yes, a life time ufastruct. I am not sure of the spelling.

Obtained at the land office by completing a form that your wife has authorised.

Easily done. No drama or need for a lawyer.
Steve *******
Note though. If you’re American there is a massively expensive exception in Thai law that does allow you to own land
Neil ******
@Steve ******
no there isn't. That's awful advice. The Treaty of Amity specifically excludes land ownership.
Steve *******
You can own half the building but none of the land. As far as “investment “ if you’re counting on the house you better have a plan B
John *********
@Steve ******
i’m afraid that is incorrect you can own a building on land in your own name, 100%. It is called the right of superficies. 
Steve *******
@John ********
you can own the building but not the land
John *********
@Steve ******
Correct, however you can also consider a little-known right which was introduced just before Covid which is a combination of the Usufruct and a lease and gives far more rights to the holder. It is called a sap ing sith

For more information you can visit my companies website on the following

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Steve *******
@John ********
And this. If the y can tie up 40m for three years and have “special skills”

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John *********
Usufruct can be used to protect your interest in land and a right of superficies can be registered dependent on circumstances so that a foreign national can own the house or building upon the land. You can also consider, which provides even more protection, the right of Sap Ing Ith. A Last will and testament are also vital should something happen to the female partner in order to leave the asset to the foreign partner so that his rights continue any problems Please give me a shout at the following

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 I am John , the chief executive officer of the company and Client affairs manager, I am a British and international lawyer and we have a full in-house team of Thai, lawyers, attorneys, accountants and consultants to assist with all of your legal matters. I hope this assists 
Graham *******
@John ********
John, would you mind answering a question for me! In the case of condominiums, 49% is the totally permissible unit holding for Farangs! What happens when the unit holders vote to demolish the building and liquidate the holding corporation! Do the Farang unit holders have the same share to the land (proceeds of sale thereof) as Thai when the land is sold? Thnks.
John *********
Usufruct can be used to protect your interest in land and a right of superficies can be registered dependent on circumstances so that a foreign national can own the house or building upon the land. You can also consider, which provides even more protection, the right of Sap Ing Ith. A Last will and testament are also vital should something happen to the female partner in order to leave the asset to the foreign partner so that his rights continue any problems Please give me a shout at the following

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 I am John , the chief executive officer of the company and Client affairs manager, I am a British and international lawyer and we have a full in-house team of Thai, lawyers, attorneys, accountants and consultants to assist with all of your legal matters. I hope this assists 
Kool *******
Basically if she passes away the land ownership must be transferred within one year to someone that can legally own it. If there are kids the wills become easier in this transfer, or put in their name earlier. If not then you've basically got to sell it all,
Matthew **********
ORIGINAL POSTER
Seems to be the consensus. I figure the house will either go to my heir (Thai citizen) and the property leased to me or I will sell and move to a condo, if I outlive my wife.
Neil ******
@Matthew *********
these are really complicated family situations that should involve a lawyer through proper estate planning and property ownership structure. Most of the people who comment in this group have no experience at all with property rights in Thailand.
Matthew **********
ORIGINAL POSTER
@Neil *****
Agreed. It's quite obvious which posters have direct knowledge with property transactions. I'm taking notes and will run what I pick up here past a lawyer this week. It's very helpful hearing from people who have gone through a similar process as foreigners protecting their real estate investment.
Neil ******
@Matthew *********
I’m building a villa right now that isn’t in a project so I’ve gone through all stages of this with many considerations, but everyone has different situations. You and I are different people. Good on you to get advice from a lawyer. And if you aren’t satisfied, go see another. Good luck.
Chris ****
I get what you’re trying to do/say. And the reason why. But talk to a lawyer about this.
Matthew **********
ORIGINAL POSTER
@Chris ***
Absolutely agree. Just want to know the thoughts, opinions and experiences of others. I'm defiantly sorting out what questions I will need to ask from the comments here.
Chris ****
@Matthew *********
you may end up being more confused. Also the laws change.
Matthew **********
ORIGINAL POSTER
@Chris ***
I'm seeing some consensus on some points. There seems to be some solid advice here, but everything will get run past a lawyer. I'm taking lots of notes.
Kevin *******
Ufastruct is ghe way to go well it is for me anyway.
Matthew **********
ORIGINAL POSTER
@Kevin ******
Did you buy a house with a usufruct annotation in your name on the deed? If so, how was the process?
Tony ******
Yes its possible but if she does die first you have to sell as you can't own a house don't quote me but I believe you have a year from death or settlement of will not sure ask the lawyer good luck
Edna *******
@Tony *****
you are correct. He can benefit from the sale financially, but cannot own property only the building. Must vacate within one year also.

That’s why many foreigners buy condos.
Matthew **********
ORIGINAL POSTER
@Tony *****
Thanks. That seems to be the consensus. I'll be bringing it up with our lawyer.
Cliff *********
Talk to your lawyer about getting an usufruct contract.

This is what is written on the back of the red or black chanot. It is perfectly legal and enshrined in Thai law.

It gives you control of both the land and the building.

Not all land offices will allow this legal agreement.

Talk to your lawyer about this and make sure the local land office where you want to buy will cooperate.

PM me if you have questions.
Matthew **********
ORIGINAL POSTER
Thanks for the advice. I'll bring this up with our lawyer.
Cliff *********
@Matthew *********
I recently purchased two adjacent properties, one with a house, this way. Chiang Mai area. Any Thai adult and any foreigner adult can make this contract. Thai statue does not specify married couples .
Ludwig ***********
Only your wife can own the land. You can legally get a right of usufruit, a piece of paper prepared by a lawyer and filed with the chanote, that gives you the right of usage of the property until your death regardless of its ownership. So even if your wife sells the land in the future, you remain the rightful user. But at your death this right will be extinguished.
Graham *******
@Ludwig **********
If your wife, or more specifically her family, decide you are not going to live in "her" house she/they can make life very difficult for you! Domestic abuse, etc. etc. Woman do not come with a lifetime manufacturer's warranty!
Erin ***************
Isn’t there a 100 year rule?
Graham *******
@Erin **************
what rule is this, explain please!
Erin ***************
@Graham ******
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Graham *******
Buying a house with land in Thailand is not possible as a Farang cannot hold land in his name there are 2 work arounds 1) Lease the land for 30 years ( I believe) many will tell you that you can lease for 90 years I suspect that there is danger going down this route, you pay your money you take your chance! 2)Set up a company and put the title in a company name. To do this you need Thai shareholders to act as nominee shareholders! Acting or requesting some one to act as a nominee (or straw man) is very illegal! Up till now the powers that be have turned a blind eye! We have had a change of government here to a populist one! They are proposing now to tax Farangs on overseas income, this is a big change if it happens. They might crack down on other things! Your choice, your money, but do remember using a company is not legal up till now its tolerated!
Jeffrey **********
@Graham ******
and correct there are a few ways through the board of investment
Matthew **********
ORIGINAL POSTER
@Graham ******
We are looking at having a thirty year lease in place that would be in my wife's will.
Graham *******
@Matthew *********
Maybe your wife leases the land to you!
Matthew **********
ORIGINAL POSTER
We will be running all the possibilities past a lawyer.
Graham *******
@Matthew *********
Any lease need to be logged at the land registry to be legal! I do not know if an "intent to lease" can be registered at the land office so I do not think it would have any validity!
Matthew **********
ORIGINAL POSTER
@Graham ******
I'll be running that by a lawyer. We may simply do a thirty year lease at purchase of the property. At my age, that's about how long I probably have left anyway.
Graham *******
@Matthew *********
live long and prosper!
David ********
Its a usefruct no need for lawyer, do at local land office.

I have 2 usefructs and they cost a few hundred baht at the land office.

A will can me made at the local gov office, cost me 50thb about 12 yrs ago.

If you are registered with your wifes permission and she passes before you.

You either have to sell within 1 year of death or have the right of use for the rest of your life.
Gianpaolo ******
Ok thanks
David ********
Gianpaolo ******
@David *******
So go to the Land office together with your wife With the marriage certificate and my wife will say I want to transfer the natural life usufruct to my handsome husband! It's correct? In addition to the marriage certificate, the property title and our identity documents, do we need to bring any other documents?
David ********
@Gianpaolo *****
yes that's all
Gianpaolo ******
@David *******
Sorry, one last question! Even if I don't have official residence in Thailand, can I be appointed as my wife's usufructuary?
David ********
@Gianpaolo *****
yes i believe so, as i am here on a extention of stay on a marriage visa.
Gianpaolo ******
@David *******
i meant Permanent residency, the one that allows you to also have a Thai identity card! You don't have thai Id card! It's correct?
David ********
@Gianpaolo *****
that's correct.
Matthew **********
ORIGINAL POSTER
@Gianpaolo *****
Thanks! I'll bring my wife, the documents and my handsome self down to the Land Office when we buy the house.
Gianpaolo ******
@David *******
do you have to be married to be able to become a beneficiary and benefit from it?
David ********
@Gianpaolo *****
i believe sok but in my case i am married. I think if not married can get a 30 yr usufruct. If you find out for sure, please let me know tnx.
Gianpaolo ******
@David *******
i should be getting married next year but if we can speed up the timing it's better! Next week I will go and get information from a lawyer acquaintance of mine (hoping he is familiar with these things since I live in a remote village in Udon Thani) and I will let you know if usufruct is possible without being married! I saved the post so I have a way to find you anyway if it's okay for you I'll send you a friend request now
David ********
@Gianpaolo *****
yes thats fine : )
Matthew **********
ORIGINAL POSTER
@David *******
I put that question in my notes for the lawyer. Thanks.
Matthew **********
ORIGINAL POSTER
@David *******
Thanks. That is my understanding as well. Still going to a lawyer to protect our investment.
Hans *****
@Matthew *********
smart, because not evry land office allow your usefruct ore lease to be regristrated on de back of the chanotte so legal advise and probleby assistant by the landoffice can keep you out of trouble, good luck
David ********
@Matthew *********
fair enough, good luck !
Martin *******
Usfruct it's called I think
Jeffrey **********
@Martin ******
that is your right to live in the property until you die
Graham *******
Matthew, I did read something somewhere in that circumstance you are expected to sell the property or transfer to a Thai with one year! Ask a Lawyer!
John ******
@Graham ******
that is the case if you inherit from a Thai . You have one year to sell
Matthew **********
ORIGINAL POSTER
My wife's cousin is our heir. One stipulation in our will shall be I reside in the home and have the right to sell.
Graham *******
@Matthew *********
You cannot make any agreement which looks like you assert control on the property as this is in violation of Thai Constitutional law and will overturn any agreement to the contrary!
Matthew **********
ORIGINAL POSTER
@Graham ******
My thought is, my wife's cousin may end up being my representative and lease holder.
Matthew **********
ORIGINAL POSTER
Thanks. We are seeing a lawyer soon.
Lye **********
House and land are two different things. 😁
Graham *******
@Lye *********
If the owner of the land does not want you on the land, you better find a way of moving your house! It's called "aggravated trespass"!
Lye **********
@Graham ******
lol.. yea.
Brandon ************
There's nothing that prevents you from owning a house.

The land is a different matter completely. Foreigners cannot legally own land in Thailand. Regardless of what fancy workaround lawyers say they have through creation of a business or whatever else, there's plenty of reports of foreigners having their property seized after the government sees through the veneer.
Burnard ************
@Brandon ***********
Is there something like a Trust in Thailand where her estate owns the land and he lives in his house?

Seems to me that the Land can remain in the technical ownership of a Thai person or organization.

Certainly, some Thai party would be willing to take ownership on the condition they get the house and land upon his & her death. Certainly, a Member of the Wife's Family.

Or the whole family (That would be a very Thai thing to do)
Graham *******
@Burnard ***********
It is illegal for a Farang to own land, also illegal to have a controlling influence on land! This is Thai constitutional law and supersedes any other law or agreement! If the government wishes to litigate it would win every time. Farangs own land through companies with nominee shareholders, this is highly illegal but up till now ignored! The new popularist government might change things!
Burnard ************
@Graham ******
In the West it would be called an Easement so that he could access his own home. Only control in the sense that he can live there.

He cannot sell the land. It belongs to Thais. That is what I was trying to ascertain if there was a Thai version of.

Think of it this way. You buy a Condo on the 10th floor of a building in Bangkok. Thais own and control the land, bottom floor, entrance, and all the common areas of the property. But, as a Condo Owner, you are granted an Easement to your home and use of common areas. They have too. They cannot deny you entrance into your own home.
Graham *******
I am a land developer in Central America, I know what an easement is, I have granted easement and leeway myself to others! Point being the freeholder grants leeway, he is not obliged to, and it can be revoked if misused!
Burnard ************
@Graham ******
I don't claim to know all the laws. Especially, in every country. It seems complicated to revoke access if a person owns property within your property. Granted there are going to be limits and you cannot just be cranky one day and decide to revoke the access of Susan Smith into here own home.

There, presumably, has to be a good reason.
Graham *******
@Burnard ***********
Not complicated or difficult at all, the only thing your wife need do is file a domestic abuse complaint and ask for a restraining order! You can appeal from jail!
Burnard ************
@Graham ******
Well yes, the property is under her name. I believe we were talking about what happens if she dies before him.

We were presuming that he trusts his wife but, in general, I would discourage anyone from buying property in someone else's name.

But the conversation was past that contingency. But, yes, I have had friends of friends who that has happened too.
Graham *******
@Burnard ***********
If your wife's family decide you are not worth your keep any longer, this can happen but usually the husband decides not to take the risk and does a runner!
Burnard ************
@Graham ******
Now you are going into the Way-Back machine of the Conversation. We had already discussed doing this legally under Thai law.

He cannot own land. We are agreed on that. But he can own the house. I was simply asking the question if a legally binding contract, under Thai law, can be drawn up to protect access into his own home?

To legally protect access from exactly what you are describing.
Graham *******
@Burnard ***********
To access his house he must cross her land! She can easy get a restraining order against him and serve it to him at a prison address!
Burnard ************
@Graham ******
You keep going back to things we already discussed. We where talking about if she dies first. We are presuming that he trust his wife.

Btw, are you suggesting she file a false police report?

As a Real Estate Contractor, is that how you normally do business?
Matthew **********
ORIGINAL POSTER
@Burnard ***********
20 years into marriage, I trust my wife. It's an interesting hypothetical argument and I'm sure it applies to the relationships of some of the posters here.
Graham *******
@Burnard ***********
I am not suggesting anyone do anything! If she dies first then he might inherit the land depends on if there are others claims. As a Farang he must dispose of the property within 12 months! A Farang cannot own or control land or try to assert control of land in any way, read the constitution!
Burnard ************
@Graham ******
Again, yawn, you are going back to things already discussed.
Graham *******
@Burnard ***********
What do YOU want to specifically know?
Burnard ************
@Graham ******
If you read back, a lawyer already answered my question ages ago. I pointed something out and he said he would check on it.

Thanks, but I don't need anything from you right now.
Brandon ************
@Burnard ***********
it would make sense if that exists but that's far beyond my expertise
Burnard ************
@Brandon ***********
Mine too. Estate planning is very common in the United States. I have a friend whose Father past away. She didn't directly inherit his property. Instead, everything is in an Estate and she, his only child, is the Executor of the Estate. Everything is still in his name in the form of: The Estate of...

Even in the USA, that requires an Attorney with a lot of Expertise to plan it out and write it into his Will.

Seems like that would be pretty obvious even in Thailand. In his case, he MAY be able to put the land in the Thai family name on the condition he maintains control until his death.
Neil ******
@Burnard ***********
I'm a lawyer licensed in the US and I asked my Thai lawyer colleague here about a trust and he said that it does not exist for this purpose. They either use a will or let assets pass through intestate succession.
Matthew **********
ORIGINAL POSTER
@Neil *****
That's very interesting and a little disappointing. I'll double check with our attorney this week in regard to how a trust works in Thailand. Even if it does not apply to my situation, It will be good to know the function of a trust here. Thanks for your input.
Burnard ************
@Neil *****
Too bad,

He owns the house, at least, and it seems fair to let him live in it. If not an Estate, then a Thai could directly inherit the land. But my fear is that they could evict him from his own house. Or they could lose the property in some other way with the same result.

He wouldn't be cheating. A Thai can own the property and he would have a contract to pay taxes on and live in his own house.

But, yeah, nothing is easy in Thailand when it comes to foreigners.

Thank you for checking.

Btw, I was referring to a Will.
Neil ******
@Burnard ***********
there are mechanisms for handling it. If you are in the situation, contact a Thai lawyer. That is how I've set myself up here with property and a will.
Burnard ************
@Neil *****
My friend's Father did put it in the Will. I never considered any other way.

Thank you.
Graham *******
@Brandon ***********
Can you give me references to properties being seized?
Brandon ************
@Graham ******
Actually this one is more recent from July.

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91/police-crack-down-on-illegal-land-sale-to-chinese
Neil ******
@Brandon ***********
none of those articles say that the properties are seized. The second article says they are going through the process of making sure the land is reclaimed, i.e., no longer held by foreigners through illegal means using nominees. If you have actual knowledge of someone losing their house and investment, please provide it.
Ally ************
@Neil *****
I think you are missing the point here.. if a foreigner is going to the trouble of creating corporate machinations in an effort to protect his investment.. he is doing so to remove any legal right his Thai wife (or partner) may have to the subject land / property.. it is something he clearly sees as 'his' asset and he wishes to retain control of it.. both during his lifetime and upon his death.. he is attempting to create a situation where the asset can never pass into his wife / partner's estate.. and potentially pass into her Thai family's estate further down the line.. this could be because he has children from a former marriage for example.. and he sees them as the rightful heirs to his wealth and that would include the land / property here in Thailand.. so if the Thai govt can see through the machine created to vest title in the name of a foreigner.. who is looking to protect his investment in this way.. and they force the transfer of title into his spouses name.. then he has failed in his attempt to secure the land as a will-able asset.. has wasted a serious chunk of money in establishing the 'illegal' framework at outset and is likely to incur further costs in complying with any govt order.. not to mention the possibility of them fining him as well as any lawyer or accountant involved in the scam.. and even if they were to simply order him to sell the property and keep the sale proceeds.. he risks having to sell it at a bad time when the market is not as buoyant as maybe it was and having to accept a lower offer than the property is really worth.. or even worse the govt assume control of the sale and accept the first offer they receive without any regard to its true market value.. there are so many possibilities of course.. but all of them represent a risk to the foreigner.. and at the end of the day his property has been 'seized' indirectly.. since he can no longer live in the dream house that he built with his own blood and sweat and probably much love.. and if he gets lucky and walks away with the majority of his capital back in the bank he will have to start all over again.. and for many people, especially those that came here to retire and are winding down.. that may be a bridge too far.. the property was their dream and their dream has been seized.. or at the very least tainted by the attention of the authorities.. which all the villagers will know about of course.. once the drums starts beating!
Neil ******
@Ally ***********
I’m sorry you took the time to type all that out. OP already said the land would pass to their Thai child and it is a very legitimate concern of a foreigner who wants to ensure he isn’t thrown out of his house if his wife passes. It is especially legitimate where families are concerned. You either have had a jaded life or a lucky one if you don’t think family disputes can create massive problems for people. And, finally, there is always an investment even if it isn’t the land. The structure is an investment so for someone to have a family issue where they can no longer sell a house in order to afford to use for alternative housing expenses, that is a big problem to consider.
Ally ************
@Neil *****
No apology needed my friend.. my observation was a general one that looked at this issue from the wider perspective of 'any foreigner' looking to invent a corporate identity (or trust) that could potentially be called into question by the authorities.. there are legitimate methods of protecting your tenure when title is vested in your wife's name.. which others have already suggested.. i didn't suggest there weren't other valid reasons for a foreigner to want to protect their 'investment' or that it wasn't acceptable to do so.. only that it was dangerous to try and do it without understanding the risks.. your reply seems to suggest i am blind to the relationship problems that could materialise.. which couldn't be further from the truth given that I'm married to a Thai and our marital home is vested in her name.. why you jump to such a conclusion i have no idea.. i was simply pointing out that if your mechanism is dis-allowed by the Thai govt when you try to invoke it then you will have failed in your intent.. so it's a case of 'buyer beware' if you are given advice that appears to be offering a cast iron solution to your dilemma!
Graham *******
@Brandon ***********
Yeah, I'm not suprised the chinese are mentioned and also Phuket with all those Russians hanging around!
Mike *******
@Graham ******
what's wrong with Russians
Karim ***************
@Graham ******
what about all those daft northerners in Pattaya? They’re worst of them all, am I right?
Brandon ************
@Graham ******
This is the most recent one from June.

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Neil ******
@Graham ******
it’s one of those things people say but nobody has actual knowledge of this happening. I’ve talked to multiple lawyers about this and they have all said the same thing: if this happens, they give you an opportunity to correct it or sell the property. Weird that lawyers have all said the same thing to me on different occasions if not true.
Neil ******
@Brandon ***********
It sounds like she’s on the chanote as the owner with him registered as a lessee. Land offices won’t allow a foreigner’s name on a chanote as the owner. And, plenty of reports of seizures is far fetched. When that happens a sale is forced. The government doesn’t typically just take the house.
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