“You may spend 20 years building an investment portfolio, but never take 20 minutes to consider who will receive that money when you’re gone.”,
Recently, a widely shared social media post featured a man who described having diversified investments—including stocks, mutual funds, and deposits—without ever informing his family where the money was. Most comments agreed, saying, "We’re the same way."
This highlights a hidden risk many Thai people face unknowingly. Data from Liberator Securities reveals a striking figure: only 38-40% of Thais hold life insurance policies. Over half lack this shortcut, have no clearly named beneficiaries, and few prepare wills in advance, meaning full court proceedings will be required when the time comes.
Simply put, this issue is not isolated to individuals but reflects a broader pattern among Thai investors.
In recent years, investing has become increasingly common among Thais. Many learn to buy stocks, build portfolios, and practice dollar-cost averaging competently. However, almost no courses teach what happens to your portfolio upon death.
The reality is that most investors focus on market volatility, interest rates, and inflation, but few consider another risk: estate risk—the risk involved in transferring assets after death.
If you ask yourself directly, "If I pass away tomorrow, where will my invested funds go?"
Many answer, "They will go to my family," which is only partially correct because legally, asset transfer is neither simple nor fast.
The truth many investors don’t know is that relatives cannot immediately withdraw money or sell stocks on your behalf by presenting a death certificate. Deposits, mutual funds, and portfolio stocks all require a court-appointed estate administrator before contacting financial institutions to close accounts or transfer assets.
The process begins when heirs or interested parties file a petition with the court. The court then schedules a hearing, which takes about two months. After the hearing, it takes more than one month for the court order to become final and binding.
In total, some cases take close to three months before asset management can begin. If any heir objects, the process may take even longer. Meanwhile, your investment portfolio essentially remains frozen and inaccessible.
Another common misconception is that all asset types are delayed equally. In reality, each asset follows a different legal path.
Without a will, estate assets are divided among legal heirs in six ranked categories: descendants (children), parents, siblings with the same parents, siblings with one common parent, grandparents, and uncles/aunts. A legally married spouse always shares the inheritance, though the proportion varies depending on which heirs are alive.
For example,
if there is a spouse and two children, the estate is divided equally into three parts. If the spouse, two children, and parents are alive, the estate splits into five equal parts, with parents treated as equivalent heirs to two additional children. If there are no children but a spouse and parents, the spouse receives 50%, and the other 50% is divided equally between the parents.
Another frequent misunderstanding is that recording video or audio of last wishes counts as a legal will. In fact, Thai law recognizes only five valid will types:
- Ordinary will
- Holographic will (entirely handwritten)
- Municipal will (document executed at a district office)
- Secret will
- Oral will, which applies only in genuine emergencies
Therefore, video or audio recordings have no legal effect as a will. If no legal heirs remain, the estate ultimately reverts to the state. This risk applies universally, regardless of portfolio size.
Liberator recommends the safest and easiest method is to make a municipal will at the district office, where the district chief or director records and certifies it, costing only a few hundred baht.
Additionally, there are three complementary actions to take.
1. Prepare an asset list accessible to trusted individuals, especially for investors with assets spread across multiple accounts, mutual fund companies, and foreign brokers. Centralizing your portfolio facilitates verification and estate management, preventing administrators from searching for scattered funds.
2. Verify that life insurance policies list correct beneficiaries, since insurance is the only asset type that bypasses court proceedings.
3. If you intend to leave assets to individuals beyond legal heirs—such as in-laws, partners, or distant relatives—you must clearly specify them in a will; otherwise, the law will not recognize them.
In summary, sound investing does not end with portfolio growth; it includes planning to ensure assets reach the intended recipients. Begin simply by creating an asset and liability list stored securely, reviewing insurance beneficiaries, and legally registering a will at the district office. True investment understanding covers the entire lifecycle, including after death.
Source: Liberator Securities Company Limited
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