On 10 July 2018, the Cabinet approved the draft Private Trust Act Bill. It was sent to the Office of the Council of State for the next stage of legislative review. Some unique features of this law are that it allows a corporate entity to be a settlor and allows real estate (immovable properties) in Thailand to be preserved under the umbrella of trust law. These measures will give flexibility for asset and wealth management and opportunities for succession planning for property owners when they are not around until the next generation is ready. Moreover, the proposed legislation closes the loophole for any abuse of the trust as a fundraising vehicle and also prevents the trust being used for capital market transactions, which are already governed under a special trust law.
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