A Family Trust is a legal structure designed to manage and transfer assets efficiently across generations. In the Thai context, while domestic law does not directly recognize trusts, families can establish trusts in jurisdictions with well-developed trust legislation — such as Singapore or Hong Kong — and combine them with Thai corporate structures.

This approach ensures that assets are passed on according to the settlor’s intentions while maintaining tax efficiency, asset protection, and compliance with international standards. For Thai HNW and UHNWI families, a Family Trust offers a powerful solution for succession planning and long-term wealth preservation.

In Thailand, estates valued at over THB 100 million are subject to inheritance tax of 5% for direct heirs and 10% for non-direct heirs. Without proper planning, heirs may be forced to liquidate assets in order to cover these tax obligations.

Strategic solutions — such as transferring assets through corporate structures, holding wealth via offshore entities, or utilizing life insurance policies — can significantly reduce the inheritance tax burden.

For HNW and UHNWI families, proactive estate and succession planning ensures not only tax efficiency but also asset preservation and smooth wealth transfer across generations.

In Thailand, transferring certain assets valued at over THB 20 million per year may be subject to a gift tax of up to 5%. Unplanned transfers can lead to duplicate or unnecessary tax burdens, reducing the efficiency of wealth management.

By implementing strategic approaches — such as transferring assets through corporate structures or staggering transfers over multiple periods — families can significantly enhance tax efficiency, asset preservation, and long-term wealth planning.

Investors with foreign-sourced income should carefully examine whether Thailand has a Double Taxation Agreement (DTA) with the relevant country to avoid unnecessary double taxation.

Choosing the right investment or shareholding structure is critical. Strategic solutions, such as setting up a holding company in Singapore or Hong Kong, can significantly improve tax efficiency, compliance, and long-term wealth management.

Tax Planning focuses on reducing annual tax burdens through efficient strategies and compliance with local and international tax regulations. In contrast, Legacy Planning is about creating a comprehensive wealth structure for the entire family, encompassing inheritance transfers, long-term asset management, and sustainable systems designed to support heirs across multiple generations.

Family businesses often face significant tax and succession risks. Without a proper plan, families may encounter internal disputes or suffer from unnecessary tax burdens.

Strategic solutions — such as structuring shareholdings, utilizing corporate shareholders, and implementing a well-drafted Shareholders Agreement — can greatly reduce these risks.

When investing in overseas real estate, it is essential to consider local property taxes, capital gains tax upon sale, and personal income tax when repatriating funds back to Thailand. Without proper planning, investors may face duplicate taxation that significantly reduces overall returns.

By using an international holding company to own foreign property, investors can create a more tax-efficient structure, minimizing exposure to double taxation while ensuring compliance with cross-border regulations.

Life insurance can be an effective instrument for paying inheritance or gift taxes without forcing the liquidation of a family’s core assets. It also provides immediate liquidity at the time of wealth transfer, ensuring that heirs have the necessary resources to cover tax obligations while preserving long-term family wealth.

At FTA Consulting, we focus exclusively on serving High Net Worth (HNWI) and Ultra High Net Worth Individuals (UHNWI) as well as business owners in Thailand. Our multi-disciplinary team of financial, tax, and legal experts, together with our global advisory network, designs secure, holistic, and legally compliant wealth structures.

By combining in-depth local knowledge with international expertise, we ensure that every structure aligns with both Thai and cross-border regulations, helping clients achieve long-term wealth preservation, tax efficiency, and sustainable succession planning.