Making a Thai Will

[lopburi3]

2 minutes ago, jeffandgop said:

She is a US citizen as well as Thai. Her SS benefit will be based on my earnings and so she will have to file BUT the gross income level will place her below any tax liability.

Thanks was not sure on that as you only mentioned her being Thai.  That explains tax/fbar.  Appears you have set up a good guide that other might want to copy.

[JimGant]

6 hours ago, jeffandgop said:

How to manage the preparation and filing of U.S. Federal taxes and FBAR each year.

I'm sure most of us reading this know that a US tax return needs to be filed for the tax year in which the US decedent dies. And, if you've been filing married jointly, this is a good thing, as the favorable deduction for married jointly still applies for the dededent's death year.

 

But so too a FBAR for the decedent's year of death (assuming the $10k plus in foreign banks has been met). No big deal. Just brief the wife/administrator on how online FBAR filing works (mail in is not an option). There's a remarks section you can freehand information, tho' it's purpose is, "why are you filing late?" Just ignore, and instead write, "Last FBAR for deceased; being filed by executor." A search on Turbotax will say you need to attach a death certificate. This is false, same as you don't need to attach a death certificate to the deceased's last tax return.

 

Anyway, one more item for your death notebook..

 

[Note: Apparently there is no US tax preparer/CPA in Chiang Mai -- there used to be but I guess he passed. This would certainly be helpful for the wife, so, anybody know of someone here in Chiang Mai? What about VFW, as I'm retired Air Force? They used to pop up as helpful for military widows, but have not seen anything about them lately...]

Edited October 3, 2020 by JimGant

[beau thai]

7 hours ago, jeffandgop said:

I'm from the U.S.  My wife is Thai. We married in the U.S. We did not register our marriage in Thailand.  No children.  This is our experience and measures we have undertaken.

 

1.  We extensively researched Thai Family Law.  We determined we could prepare and execute our wills in Thailand without the need for a lawyer.  We paid for a will template (740THB) from Thailandlawonline.  We each created and completed wills using the template as a guide/baseline and had 2 witnesses sign after we signed.  We placed the originals in a lockbox and copies were provided to our designated executor.  We did not register the will with the Amphur as it is not a legal requirement.  We are completely confident our wills are legal, enforceable and valid. 

 

2.  Some years ago II created a notebook for my wife, which I keep updated, which provides instructions and advice to take control of assets and daily life when I pass- no need to try to search for what and where assets are, who to contact, what to do, etc. The Table of Contents lists each topic of details I have created:

• GENERAL
• FIRST STEPS
• (COMPANY) PENSION
• SOCIAL SECURITY ADMINISTRATION
• BANKING
• U.S. INCOME TAXES & FOREIGN BANKS & FINANCIAL REPORTS
• OTHER

The "General" & "First Steps" info includes location of all key documents s.a. wills, passports, marriage certificate, birth certificates, house registration, auto titles, etc.  User Names and passwords of key websites.  Words of caution to strictly avoiding any lawyer whose fees are based on the value of the estate. How to contact my family in the U.S., notifying Thai authorities and the U.S. Embassy and obtain death certificates and U.S. "Notification of Death Abroad". How to notify my company pension org and secure control over the continuing pension. Social Security Administration- how to contact and details of the benefits that will continue. U.S. banking- how to contact to secure our joint account and what they will require.  How to manage the preparation and filing of U.S. Federal taxes and FBAR each year. Insurance policies and benefits. Etc. Etc.

 

Of the many comments and advice given by the community in this thread, I will now provide my knowledge or experience or suggestions to a few of the comments that I can specifically relate to.

 

"And while on this subject, I recommend having a Living Will".  Damn Smart- we have executed those as well using templates obtained from Thai websites online.

 

"If the banks know you have died, they will freeze the account until probate has been approved".  That is what Bangkok Bank has told us as well.  Being a joint account she can either withdraw all the funds before notifying the bank or secure after probate.  She also has access to my sole account used for annual immigration requirements.

 

"Template wills are not advised nor necessarily immediately accepted. For example, when a will is probated there can be consideration of the inheritance laws of Thailand and the courts concerns for recognising the rights of relatives abroad, such as children."  Not true. Most wills must go through probate, regardless whether a lawyer prepared them or the deceased person themself.  Inheritance laws dictate the rights of family members where there is no will.  A will can determine how assets are too be distributed regardless of Thai family law.  Certainly disgruntled relatives may wish to contest a will, but generally a will is held valid for can how assets are ultimately disbursed.

 

"My Thai will is lodged at the local Ampure in accordance with Thai rules".  While wills may be registered with the Amphur, it is an option and not a requirement for a will to be valid.  But, it is said that a registered will provides greater weight if disputed than one that is not registered.

 

many thanks. Very useful info and ideas.

[JimGant]

3 hours ago, jeffandgop said:

Her SS benefit will be based on my earnings and so she will have to file BUT the gross income level will place her below any tax liability.

How so? If her entire income is SS, definitely doesn't have to file. And, when SS is combined with other taxable income, taxable SS will fall between 0 and 85%. Do the math, and if taxable income, to include part (if any) SS exceeds the standard deduction, yes, you must file. If not, no need to file.

 

Having said all that, best to file in any case, particularly if you want to avoid any future stimulus check address fiascos.

 

To cover my wife against tax penalties, should she be so confused dealing with my demise, I've intentionally paid somewhat excessive estimated taxes, so that when finally filing, there will be no smack from the IRS.

Edited October 3, 2020 by JimGant

[jeffandgop]

6 hours ago, JimGant said:

How so? If her entire income is SS, definitely doesn't have to file. And, when SS is combined with other taxable income, taxable SS will fall between 0 and 85%. Do the math, and if taxable income, to include part (if any) SS exceeds the standard deduction, yes, you must file. If not, no need to file.

 

Having said all that, best to file in any case, particularly if you want to avoid any future stimulus check address fiascos.

 

To cover my wife against tax penalties, should she be so confused dealing with my demise, I've intentionally paid somewhat excessive estimated taxes, so that when finally filing, there will be no smack from the IRS.

SS will not be her only US derived income as I wrote. Her total income will require that a tax return be filed but will have 0 tax liability due to her filing status and net income level. No need to advise me on tax particulars as I’m way ahead of all elements from my years of tax planning.

Edited October 3, 2020 by jeffandgop

[JimGant]

2 hours ago, jeffandgop said:

Her total income will require that a tax return be filed but will have 0 tax liability due to her filing status and net income level.

OK, not to be a pain, but I'm missing something here.... "Total income" I presume is adjusted gross income. And you say this amount requires her to file a tax return... But what is "net income?" -- I can only presume it's "taxable income," i.e., adjusted gross income less the standard deduction for her filing status (single). But then you say her tax liability is zero because of her net income, which means her standard deduction is greater than her adjusted gross income, which means -- she is not required to file a tax return. Again, what am I missing? Will she be itemizing and not taking the standard deduction? Thanx.

Edited October 3, 2020 by JimGant

[jeffandgop]

My poor choice of not using the exact IRS terminology.

 

To clarify.

 

Whether you're REQUIRED TO FILE is based on your gross income.

Whether you're REQUIRED TO PAY any tax is based on your adjusted gross income (AGI).

 

AGI is always lower than gross income.

[JimGant]

5 hours ago, jeffandgop said:

My poor choice of not using the exact IRS terminology.

 

To clarify.

 

Whether you're REQUIRED TO FILE is based on your gross income.

Whether you're REQUIRED TO PAY any tax is based on your adjusted gross income (AGI).

 

AGI is always lower than gross income.

Where to begin to reclarify your clarification....

First, I think you're confusing AGI with taxable income (TI). And, no, AGI is not always lower than gross income -- if you have no above-the-line deductions (and thus not required to file Schedule 1 of the 1040), the two are the same. But, YES, TI is always lower than AGI, since TI is nothing more than AGI less your standard deduction (or itemization, if you go that route).

 

So, if you replace AGI in your statement with TI, your statement will be correct. But, whether you're required to file is not, as you say, solely dependent on your gross income -- it's dependent on whether or not the figure you get when you subtract your standard deduction from AGI is positive. Now, this implies your TI is positive -- but this might not be true if you have a larger itemization figure than your standard deduction. Nevertheless, you're still required to file even tho' you may not owe any taxes.

 

Having said all that, and as I previously said in an earlier post, it's best just to file in all situations (but if you can't, or forget, it's nice to know what situations make this ok).

 

[fangless]

Why do people have to keep hijacking threads with arguments on a non related subject.  It just hides the good information and leads to new topics having to be started. 

Can those arguing about AGI/TI etc go and start another thread and leave this to making a will-NOT about tax returns.