A Mexican bank trust is a legal corporation that can be used to hold assets, real estate and even businesses. The trust provides a high level of security for your assets as well as privacy. Though there are many different options for setting up a Mexican bank trust, this article will focus on how to set up one with a Mexican bank account and attorney so that you can enjoy living and working in Mexico.
What Is a Mexican bank trust?
A Fideicomiso is a bank trust that allows you to invest in any Mexican property and own it as a beneficiary. To be clear, you have all the rights of real estate ownership while a Mexican bank holds the legal title to it as your trustee. The Mexican Constitution will always protect your property from any kind of nationalization or expropriation by the state, which means that if something happens politically, you won’t lose your money or anything else invested in this kind of investment vehicle.
A bank trust is not a lease. Under this type of arrangement, only the beneficiary or property legal owner/purchaser has full rights over their property including: occupying it, leasing it out, altering it (subject to restrictions), building on top of it etc…
In no way does this make your property an asset for the bank and they are there only to help you manage it. The owner has full rights to occupy, lease, alter, and/or build on the property.
If necessary -and within certain limits- he/she can even instruct his/her trustee (the Bank) in order for him/her to transfer title into another hand.
Why set up a Mexican Bank Trust?
- Protect your assets.
- Protect your family.
- Keep your assets safe from creditors, lawsuits, taxes and other legal problems by keeping them outside of the jurisdiction in which you live or operate (for example, the United States).
- Keep your assets in a foreign country with a lower risk of government confiscation than many other countries in the world (see below for more information on this).
- Keep your assets denominated in another currency besides US dollars (see below for more information on this).
3 Steps to Setting Up a Mexican Bank Trust
- Find a bank trust or financial institution to hold the trust. It is important that you make sure that your chosen institution is authorized by Mexico’s Ministry of Finance and Public Credit, as well as its applicable central bank. The process of opening up a bank trust in Mexico can be relatively simple and fast, but it should not be done without careful consideration of all the details involved.
- Draw up an agreement with your chosen financial institution regarding what benefits you will receive as being the first beneficiary of the trust, as well as how many times they pay out before going to any other beneficiaries – if any exist at all (such as children). This part of setting up a Mexican Bank Trust may take some time and effort because there are so many different variables involved when selecting these terms; however, once these terms have been agreed upon between yourself and your chosen financial institution then it becomes much easier for them to set up this type of arrangement on behalf yours truly!
- Assign a second beneficiary(ies) if needed/wanted (typically just one). If there were ever any issues that arose between family members where one person might not want another living relative accessing their money if anything happened before taking care of themselves first then this would allow us all peace-of-mind knowing that everything has been taken care of properly beforehand.
Cost of the setting up of a Mexican Bank Trust
The cost of setting up a Mexican Bank Trust varies depending on property and institution, but is typically around $700 USD. Once established, there are annual fees also vary depending on the institution.
Does a Mexican Bank Trust last forever?
A Mexican bank trust can last for a period of 50 years. If you are thinking about setting up a Mexican bank trust and want to know how long it will last, you will be happy to know that when you have accomplished all 3 steps, your Mexican bank trust can be set up for 50 years.
A Mexican Bank Trust can help keep your assets safe, plus benefits of living and working in Mexico.
Setting up a Mexican Bank Trust is a great way to keep your assets safe, have peace of mind and make sure everything is in order for the future.
Here are some of the benefits of setting up a Mexican Bank Trust:
- Keeps your assets safe – This means that if anything were to happen to you, your family would still be able to access these funds without any problems or issues. It also provides privacy by keeping other people from seeing how much money you have in the account.
- Provides peace of mind – Knowing that everything will be taken care of if something happens helps reduce stress levels and anxiety around planning for retirement or leaving an inheritance behind when you die (or both).
How to find the right attorney to help you get your trust set up in Mexico.
When it comes to setting up a Mexican bank trust, you will want to find a reputable attorney who is licensed to practice law in Mexico and has experience in these types of matters.
You can find such attorneys through referrals from friends or family members, or by searching online for an attorney with the appropriate credentials and qualifications.
Caribe Luxury Homes Real Estate agents work with trusted attorneys who will help you set up a trust in Mexico for you. Click here to get our help today.
Once you have found an attorney that meets your needs, be sure to check out reviews from other clients before making any final decisions about hiring them.
Our attorneys have worked with many of our clients and we can help provide you testimonies and reviews from them so you can be sure we are doing the best job for you.
Summary
Whether you’re a U.S. citizen or not, it’s important to be aware that some Mexican property is restricted by law. For example, if you want to buy property in Riviera Maya (As an example), the Mexican region south of Cancun, or within 30 miles of the shoreline of Mexico, you need to use an entity such as a trust or corporation for ownership purposes.
Seek help from our real estate agents who can represent you in making an offer and buying your property safely and securely in Riviera Maya Mexico. Click here to contact us today at no obligation and at no extra cost.
Related articles:
Buying Property In Mexico: Fideicomiso Or Corporation?
Is A Residency Required To Buy Property In Mexico As An American? Read This
