How Is It Determined Whether German or Thai Law Applies?
When dealing with inheritance matters for a German citizen with connections to Thailand, understanding which country's laws apply is crucial. The determination depends on factors like the deceased's nationality, habitual residence, and any legal arrangements they made before their passing. Here's how this is generally decided:
1. Key Determining Factors
Nationality
Under German law, the nationality of the deceased plays a significant role. If the deceased was a German citizen, German inheritance law usually applies by default.
Habitual Residence
If the deceased had their primary residence in Thailand, Thai inheritance law might apply instead. Habitual residence refers to the place where the deceased lived permanently or predominantly at the time of their death.
Choice of Law
The deceased may have made a choice of law in their will. German citizens can explicitly choose German law to govern their estate, even if they resided in Thailand.
Without such a declaration, the law of the country where the deceased habitually resided typically takes precedence.
2. The Role of the EU Succession Regulation
If the deceased was a German citizen and resided in Germany or another EU country (excluding Denmark and Ireland), the EU Succession Regulation (Regulation No. 650/2012) may apply.
The regulation stipulates that the law of the deceased's habitual residence generally governs inheritance matters unless they chose the law of their nationality.
3. Thai Inheritance Law
In Thailand, inheritance matters are governed by the Civil and Commercial Code.
Thai law applies to assets located in Thailand if the deceased was habitually residing there, regardless of nationality.
4. Cross-Border Implications
When both German and Thai connections exist, complexities arise:
Assets in Germany: Typically governed by German law.
Assets in Thailand: Governed by Thai law unless a will specifies otherwise.
Mixed Assets: Coordination between German and Thai authorities may be necessary to resolve disputes.
5. Practical Steps to Determine Applicable Law
Check the Will
Review any wills or legal declarations left by the deceased. A choice of law clause can simplify matters significantly.
Evaluate Residence History
Determine where the deceased habitually lived. This involves factors like time spent in each country, ties to the community, and family presence.
Consult Legal Experts
Seek advice from legal professionals with expertise in both German and Thai inheritance law to understand the implications and avoid conflicts.
6. What If No Will Exists?
If no will is present:
German law applies if the deceased was a German citizen with no habitual residence outside Germany.
Thai law applies if the deceased lived in Thailand, particularly for assets located in Thailand.
7. Resolving Conflicts
If disputes arise over which law should apply:
Authorities in both countries may need to collaborate.
Court rulings or arbitration may be required to settle jurisdictional disputes.
Conclusion
The determination of whether German or Thai law applies depends primarily on the deceased’s nationality, habitual residence, and any explicit legal choices they made. Proactively addressing these factors through clear legal documentation can prevent uncertainties and ensure the deceased’s wishes are honored across borders.