Yes, it is possible to set up a trust in Thailand. Trusts are recognized and regulated under the Thai Civil and Commercial Code, specifically in Sections 1686 to 1739.
Here are some key points to consider regarding trusts in Thailand:
- Purpose: A trust can be established for various purposes, such as asset protection, estate planning, charitable purposes, or managing specific assets for the benefit of beneficiaries.
- Trust Deed: The trust is created through a written trust deed that outlines the terms and conditions of the trust, including the trust property, trustee(s), beneficiaries, and distribution rules.
- Trustee: A trustee is appointed to manage and administer the trust property according to the terms of the trust deed. The trustee has a fiduciary duty to act in the best interests of the beneficiaries.
- Beneficiaries: The beneficiaries are the individuals or entities who will benefit from the trust property as specified in the trust deed. They can be named beneficiaries or determined by a class of beneficiaries.
- Trust Property: The trust property, which can include various assets such as real estate, financial assets, or personal property, is transferred to the trustee’s ownership to be held and managed for the benefit of the beneficiaries.
- Duration: Trusts in Thailand can be established for a specified period or for the duration of the beneficiaries’ lives. There are no restrictions on the maximum duration of a trust.
- Registration: Trusts in Thailand are not required to be registered with any specific government authority. However, it is advisable to have the trust deed properly drafted and executed, and keep clear records of the trust property and transactions.
- Taxation: Trusts in Thailand may have tax implications, including income tax, capital gains tax, or inheritance tax. It is important to seek professional advice from tax experts or legal professionals to understand the tax implications and compliance requirements.
It is worth noting that establishing and managing a trust can be a complex legal process. It is recommended to consult with a qualified Thai lawyer or law firm specializing in trust law to ensure compliance with the relevant legal requirements and to tailor the trust structure to your specific needs and objectives.
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