Putting MX condo in family trust

marybna

Well Known Member
Forum Supporter
#1
We have a family trust and all the real estate has been placed in it. Do I need a Mexican lawyer to put my Bella condo in the family trust?
 

Landshark

Well Known Member
#2
I am by no means knowledgeable about this but my first thought is yes. The lawyer who created your trust can draw up the deeds needed to transfer ownership of your US home and other property from you to your trust. However, I believe a Mexican attorney would be necessary for creating the condo ownership documents necessary to transfer from you to the trust. Somehow I think it will be view more as a sale from you to the trust which may even create a capital gains tax event.
 

Roberto

Well Known Member
#3
Remember you are putting your Fideicommissa ( Mex. Bank Trust) in the Family trust (assumedly a US Trust). A Ttrust in a trust. There are named beneficiaries in a Fideicommissa. Not sure how that works. Meet with a Notario for answer. I'm sure it is possible. If it is viewed as a sale you will prolly have to go through the entire process for a new Fidiecomisso. Hopefully you won't need a new Fideicommissa.. $$$
 

Terry C

Well Known Member
#4
I agree. it will require redoing the trust to reflect the name of the trust and as Landshark said it will create a sale. I asked the same about putting our house in a LLC and was told the same, sale!

There are no US capitol gains owed to the IRS on a sale being in a trust or not, only Mexican capitol gains. You have a beneficiary in your trust so I doubt someone could try to take it.
 

ernesto

Well Known Member
#5
You can list successors to your property in Mexico in the event of your demise. I would ask the notario you use if this could be done with an addenum.That satisfies the legal requirement in Mexico without triggering a sale. I did it when my new trust was written.
 

Landshark

Well Known Member
#6
I agree. it will require redoing the trust to reflect the name of the trust and as Landshark said it will create a sale. I asked the same about putting our house in a LLC and was told the same, sale.
We transferred ownership of our group owned home to a LLC and that’s exactly what happened. It was viewed as a sale, we had to replace our bank trust with a new one under the name of the LLC and were required to pay capital gains tax to the Mexican government. Long story short it cost a LOT OF MONEY.
 

Roberto

Well Known Member
#7
Not sure what you would accomplish Putting your Fideicommisso in a US trust. When you first got your Fidecomisso you named beneficiaries of the trust. It's a normal part of the process. If you pass on to the great divide those beneficiaries own the trust and the property. You can always change the beneficiaries of your Fideicommisso, adding everyone in the US family trust. This does not require a new Fidiecomisso I an almost certain. Ask a Notario.
 

ernesto

Well Known Member
#8
Not sure what you would accomplish Putting your Fideicommisso in a US trust. When you first got your Fidecomisso you named beneficiaries of the trust. It's a normal part of the process. If you pass on to the great divide those beneficiaries own the trust and the property. You can always change the beneficiaries of your Fideicommisso, adding everyone in the US family trust. This does not require a new Fidiecomisso I an almost certain. Ask a Notario.
Exactamente, not sure about the addenum as I put my kids on mine as successors when I applied for the trust.Don't see why that wouldn't work though.
 

marybna

Well Known Member
Forum Supporter
#9
I talked to a Mexican Real Estate person and he sent us back to the people we had used before. So it is all done now. I hated to leave it was so nice. Bella was not crowded. So Raffie was one of a few dogs there so he got to run me a lot. We were doing so much I never got to go in the ocean.
 

Landshark

Well Known Member
#12
We have a Mexican attorney in Penasco. They did it all and we paid some money.
It would be good for us to know some specifics on what they did if you don’t mind. This is a topic that no one on our forum really understands and for future reference it would be nice to know. After reading your posts it sounds like the solution was somewhat simple. Makes me wonder if it’s as easy as modifying the Fideicomiso by adding the name of the family trust as an owner. Basically adding the family trust to the Fideicomiso instead of adding the Fideicomiso to the family trust.
 

marybna

Well Known Member
Forum Supporter
#13
Jack is an accountant. He went to an attorney in PP. She is going to contact the bank in Hermosillo that holds the trust for the condo. The condo has to be held in a trust by a bank.
 

Landshark

Well Known Member
#14
Jack is an accountant. He went to an attorney in PP. She is going to contact the bank in Hermosillo that holds the trust for the condo. The condo has to be held in a trust by a bank.
Thank you! Keep us posted, it will be interesting to see how this plays out.
 

marybna

Well Known Member
Forum Supporter
#15
Accountants are a different breed. They study everything and look at 100 different ways. He talks to people down there and a lot of the realtors know who to send you to. Some of us have had our condos for 20 years. We went to Kaizen in PP. We have used them before. Trey have to send everything to the bank in Hermisillo. Many of our children do not want to deal with property in Mexico.
 

dirtsurfer

Well Known Member
Forum Supporter
#16
Not sure what you would accomplish Putting your Fideicommisso in a US trust. When you first got your Fidecomisso you named beneficiaries of the trust. It's a normal part of the process. If you pass on to the great divide those beneficiaries own the trust and the property. You can always change the beneficiaries of your Fideicommisso, adding everyone in the US family trust. This does not require a new Fidiecomisso I an almost certain. Ask a Notario.
Roberto: my Fideicommisso is with ScotiaBank. I’m lazy right now and will ask you this question rather than reading through my huge stack of Mexico documents: would I have been required to name a beneficiary at the time we formed our trust?
 

Kea

Well Known Member
#17
When we set up our fideicomiso, they asked us to provide a beneficiary, which we did. But, I'm not sure if it was actually required.
 

Roberto

Well Known Member
#18
Yes it is actually required and should be done with some thought. In effect it acts like a will. If you pass over those named are the owners of the property. I think you can specify shares but not sure about that anymore.
 
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