What Happens to Your Mexican Property When You Pass Away?

Many Canadians own a vacation home, condo, or investment property in Mexico through a fideicomiso (bank trust). One of the questions I hear most often is:

"Will my family be able to inherit my property easily if something happens to me?"

The good news is that, in many cases, a properly structured fideicomiso can make the transfer of your Mexican property much simpler than people expect.

When a fideicomiso is created, the owner can designate substitute beneficiaries. These are the individuals who will receive the beneficial rights to the property upon the owner's death. If the trust has been properly drafted and the beneficiary designations are up to date, the transfer can often be completed without a lengthy Mexican probate process, saving time, expense, and stress for surviving family members.

Unfortunately, many Canadians set up their fideicomiso when they purchase their property and never look at it again. Years later, family circumstances may have changed. A spouse may have passed away, children may have become adults, or the owner may wish to leave the property to different beneficiaries. If the trust does not reflect the owner's current wishes, transferring the property can become more complicated and may require a formal succession process in Mexico.

Another common misconception is that a Canadian will automatically govern the transfer of Mexican real estate. While a Canadian will remains an important part of your estate plan, Mexican property is subject to Mexican law. For that reason, it is important to ensure that your Canadian estate plan and your Mexican fideicomiso work together rather than conflict with each other.

A simple review of your fideicomiso can provide peace of mind and help ensure that your property passes smoothly to your loved ones. If you own property in Mexico, especially in a beachfront or restricted zone, it is worth taking a few minutes to confirm who is currently named as a beneficiary and whether those designations still reflect your wishes.

Proper planning today can save your family significant time, cost, and uncertainty in the future.

This article is provided for general information only and does not constitute legal advice. Estate planning and succession matters involving Mexican property should be reviewed based on your specific circumstances.

Hermes Sanchez

Practitioner of Mexican Law*

Tel. 778-814-7112

*Practitioner of Foreign Law,

Mexico, Bachelor of Laws, 2008

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