The Legal Implications of German Citizens Relocating to Thailand: Inheritance Law Considerations

Introduction

Relocating to a foreign country can be an exciting adventure, offering new opportunities and cultural experiences. However, for German citizens moving to Thailand, understanding the legal and inheritance implications of such a move is crucial. German and Thai laws differ significantly, and without proper preparation, this can lead to complications for you and your heirs.

 
German Inheritance Law: An Overview
Germany has a well-defined inheritance system that follows forced heirship rules. Under German law:

Certain relatives (e.g., spouses, children, parents) are entitled to a minimum share of the estate.
German inheritance law applies to German citizens regardless of where they reside, unless explicitly excluded through legal steps.
 
Thai Inheritance Law: Key Points

Thai inheritance law follows principles more aligned with common law systems:

There is no concept of forced heirship like in Germany.
Wills are recognized but must comply with specific Thai formalities to be valid. Without a will, the estate is distributed according to Thai statutory inheritance rules, which prioritize immediate family members.
 
Relocation to Thailand: What Changes?

When a German citizen moves to Thailand, several factors come into play:

Which Law Applies?

Under international private law, the governing law of inheritance is typically determined by the deceased's nationality. However, this can be overridden by the choice of domicile or explicit election of applicable law in the will.

Tax Implications

German inheritance tax applies to the global estate of German citizens, regardless of their residence. Thailand, however, imposes inheritance tax only on assets located in Thailand.

Challenges with Mixed Assets
Owning assets in both Germany and Thailand may lead to jurisdictional conflicts. Proper estate planning can help mitigate these risks.
 
Practical Steps to Protect Your Estate

Draft a Dual-Jurisdiction Will

Ensure your will is valid both under German and Thai law to avoid unnecessary disputes.

Elect Applicable Law

Under EU Regulation 650/2012, German citizens can explicitly choose German law to govern their estate.
Seek Professional Advice

Engage lawyers experienced in cross-border estate planning to address the complexities of both jurisdictions.
 
Case Studies: Common Scenarios
A Retired German Living in Thailand with Thai Spouse
The interplay between forced heirship (Germany) and spousal rights (Thailand) can lead to unexpected outcomes without proper planning.

Real Estate Owned in Thailand

German law might apply to personal assets, but Thai real estate is typically governed by Thai laws, making local expertise indispensable.
 
Conclusion

Moving to Thailand offers an enriching lifestyle, but German citizens must address the legal implications of such a relocation. Proper estate planning ensures your wishes are respected and minimizes the risk of disputes among heirs. Consulting with experienced legal professionals is the key to a smooth transition and protecting your legacy.