Legal Measures in Managing Property for the Elderly: Study Particularly in Laws on Trusts

Abstract

This study examines the legal issues and measures surrounding trusts for managing elderly persons' assets. The findings reveal that Thailand lacks comprehensive legal measures to adequately govern elderly persons' asset management. The Elderly Persons Act of 2003 (B.E. 2546) safeguards the rights of elderly people to receive state aid and ensures their rights are promoted and supported efficiently. The Civil and Commercial Code, addressing the capacity of persons, provides protection only to legally incapacitated individuals, including minors, mentally ill persons, and persons without capacity, in their transactions involving property. However, these laws do not provide specific protection for elderly persons in property transactions. Based on the findings, the study recommends the enactment of a specific Elderly Persons' Asset Management Trust Act. In drafting this Act, it is recommended that Japanese trust laws and their application to the elderly population be considered as a guide. Adjustments to the principles or details should be made to suit the unique context of elderly persons' asset management. Key elements include the method of establishing trusts, registration of trust assets, powers, duties, and liabilities of trustees, appointment of third parties, benefits for beneficiaries, termination of trusts, and rights to remaining assets post-termination. The act should specify who can conduct business as trustees, ensuring transparency in trustee duties. Eligible trustees should include newly established trust banks and trust companies specifically for trust business, commercial banks under financial institution business laws, and financial institutions established by specific laws. An independent body should be created under the Elderly Persons' Asset Management Act to oversee trustees, formulate policies for the promotion and development of trusts for elderly persons. In addition, the government should provide support for raising awareness of the existence of trusts for elderly asset management among elderly persons or those approaching old age. This should include educating them about the nature of using trusts for asset management, informing them of the benefits they can receive, explaining the advantages and disadvantages of using trusts for asset management, providing support to individuals who wish to become trustees in designing the use of trusts for elderly asset management through the creation of various product formats so that elderly persons can consider which product is most suitable for them.

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