How Inheritance Processes Differ in Germany and Thailand

Inheritance processes vary significantly between Germany and Thailand, reflecting differences in legal systems, cultural practices, and administrative procedures. Understanding these differences is crucial for anyone dealing with cross-border estates involving assets in both countries.

 
1. Legal Frameworks

Germany follows a structured legal framework based on civil law, with mandatory shares (Pflichtteil) for certain close relatives. The law limits the testator’s ability to disinherit heirs completely.

Thailand also uses a civil law system but offers greater freedom in estate planning. There are no mandatory shares, and heirs are divided into six legal classes, with inheritance proceeding class-by-class until all eligible heirs are identified.

 
2. Role of Wills
Germany
A will can significantly impact inheritance, but it cannot override mandatory shares for close relatives. If no will exists, the estate is distributed according to the statutory inheritance rules.

Thailand
A will has more flexibility and can dictate how the estate is distributed. If there is no will, the estate is divided equally among heirs within the applicable class as defined by Thai inheritance law.

 
3. Probate and Administration

Germany
The probate court (Nachlassgericht) oversees the estate administration.
Executors (if appointed in the will) manage the distribution.
The process is detailed and formal, requiring legal documentation and estate valuation.

Thailand
Thai courts handle probate only if disputes arise or no executor is appointed.
Executors named in a will have broad authority to administer the estate.
The process is simpler and less regulated compared to Germany.
 
4. Mandatory Shares vs. Freedom of Testation

Germany
Certain heirs (spouse, children, parents) are entitled to a mandatory share, typically half of their statutory inheritance, even if excluded from the will.

Thailand
There are no mandatory shares. The testator has full freedom to distribute their assets as they wish through a will, potentially excluding close relatives entirely.

 
5. Taxes and Costs
Germany
Inheritance tax applies to most estates, with tax rates ranging from 7% to 50% depending on the relationship between the deceased and the heir.
Tax exemptions exist for spouses and children.

Thailand
Inheritance tax applies only to estates exceeding 100 million THB and is limited to assets within Thailand.
Tax rates are 5% for direct heirs and 10% for others.
 
6. Disputes and Challenges

Germany
Disputes often arise over mandatory shares or the validity of a will. Claims must be filed within three years.

Thailand
Challenges typically involve the legitimacy of heirs or wills. There is no concept of mandatory share disputes since the law allows full testation freedom.

 
Conclusion
The inheritance process in Germany emphasizes structure, fairness, and legal protections for close relatives, while Thailand prioritizes flexibility and simplicity. For cross-border estates, understanding these differences and seeking professional guidance ensures compliance with both systems and smooth estate administration.