Under a gift agreement, the donor transfers property to the donee free of charge, and the donee accepts such property.
The following will also be considered a gift.
— The donor releases the donee from obligations that the donee owed to the donor.
— The donor performs obligations that the donee owed to third parties.
A gift agreement is valid only upon actual transfer of the gift.
If the gift is a right evidenced by a written document, the transfer of such right under a gift agreement is carried out by handing over that document. The person obligated under such document must be notified in writing about the transfer of the right.
If the transfer of ownership of the gifted property requires registration with an authorized authority, the gift agreement is valid only upon such registration. Physical transfer of the property is not required in this case.
If the donor has signed and registered the gift agreement with the competent authority but does not transfer the gift, the donee has the right to demand delivery of the gift, but not compensation for breach of contract.
If the donor undertakes to perform certain actions regularly in favor of the donee as a gift, such obligations terminate upon the death of either party, unless otherwise determined by the nature of the obligation.
A gift may be subject to conditions or obligations. In this case, the donor is liable for defects of the gifted property, but only within the value of the obligations. If the donee fails to fulfill obligations owed to the donor, the donor may demand the return of the gift. If the donee fails to fulfill obligations owed to third parties as a condition of the gift, the donor has no right to demand return of the gifted property.
If the value of the gift is less than the value of the obligations, the donee performs obligations only within the value of the gift.
In case of “ingratitude” by the donee, the donor may demand return of the gift within six months after becoming aware that the donee.
— committed a criminal offense against the donor.
— insulted the donor.
— refused to provide essential assistance to the donor when able to do so.
If the donee commits murder of the donor, the heirs have the right to demand return of the gift.
The following gifts are not subject to return.
— Gifts whose value has been fully compensated.
— Conditional gifts.
— Gifts made in fulfillment of a moral duty.
— Wedding gifts.
The taxation of gift agreements in Thailand will be discussed in subsequent articles.
For all questions regarding drafting or reviewing gift agreements and other documents, please contact: +66 65 665 1970.
Author: Alexandra Agapitova.
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