Bank trusts in Mexico are a great estate planning vehicle

First Title Services utilizes its expertise to create Bank Trusts for Foreigners in Mexico.  Bank Trusts (Fideicomisos) are the legal instrument whereby a Foreigner can acquire Real Estate in the Restricted Zone of Mexico. 

The Restricted Zone, as defined in the Méxican Constitution, is any land area contained within the following parameters:

1.     100 Kilometers (62.1371 Miles) inland from any border with a neighboring country

2.     50 Kilometers (31.0685 Miles) inland from any oceanfront area (Coastline)

It is also an excellent estate planning tool, just like in other countries and can be used to acquire land anywhere in Mexico.  In addition, it is also possible to hold multiple properties in the same bank trust.  Why is it a great tool to hold title?  One of the requirements of the Bank trust is that it has to specify who the Beneficiaries are so that if one or both of the Buyers were to pass away then the trust would already be prepared to transfer the title of the property according to the legal document.  There are no transfer taxes to pay in this type of transfer and the process is both simple and efficient.  Our office has handled many cases like these and from start to finish; it should not take more than 30 days.

There are many different types of Bank Trusts.  Bank Trusts are the vehicle by which all institutional lenders will lend money to foreigners in México.  The same solution can be setup for owners of property that wish to carry paper to the buyer and stay protected against them defaulting on their payments. 

For help with these types of situations, please call our office today.