Educational Information Only
The content on this page is for general educational purposes and does not constitute legal advice. Every legal situation is unique. For matters involving investigation, arrest, litigation, or formal proceedings, consult a qualified legal professional.
Thai Trust Law: Capital Market Trusts Only
Thailand has no general civil-law trust. The Trust for Transactions in Capital Market Act B.E. 2550 (2007) allows trusts only for capital-market purposes. This guide explains the limited regime.
TL;DR
Thailand has no general civil-law trust recognised. The Trust for Transactions in Capital Market Act B.E. 2550 (2007) allows trusts only for capital-market purposes: securitisation trusts, real estate investment trusts (REITs), and infrastructure trusts. Family / dynastic trusts and general asset-protection trusts are not recognised. Foreign trusts holding Thai assets face conversion challenges.
Permitted Capital-Market Trust Uses
- REIT (Real Estate Investment Trust).
- Infrastructure trust (toll roads, railways).
- Securitisation trust (asset-backed securities).
- Specific-purpose vehicles per SEC notifications.
Trustee Eligibility
- SEC-licensed trust company.
- Commercial bank with trust licence.
- Specific entities approved by SEC.
Alternatives for Family Wealth
| Need | Thai-law alternative |
|---|---|
| Asset protection | Limited company structure / foundation |
| Succession planning | Thai will + lifetime gifts |
| Anonymity | Holding company (note beneficial-ownership disclosure rules) |
| Investment pooling | Mutual fund |
Foreign Trust Holding Thai Assets
- Thai land cannot be held by foreign trust.
- Thai company shares — trust may be recognised as beneficial owner via foreign-trust documentation; AML / DBD beneficial-ownership disclosure applies.
- Thai bank account — trustee structure case-by-case.
Common Mistakes
- Drafting "Thai family trust" — not recognised.
- Skipping beneficial-ownership disclosure on Thai company shares.
- Tax implications of foreign-trust distributions to Thai-resident beneficiaries.
FAQs
1. Why no general trust law?
Thailand follows civil-law tradition; trusts are an Anglo-common-law construct.
Related Reading
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