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?
Putting MX condo in family trust
Started by marybna · Aug 11, 2019 · 26 replies
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.
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.. $$$
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.
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.
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.
Terry C said: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.
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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.
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Roberto said: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.
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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.
Matter of simple curiosity, what did you have to do??
We have a Mexican attorney in Penasco. They did it all and we paid some money.
marybna said: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.
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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.
marybna said: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.
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.
Roberto said: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?
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.
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.
Landshark said:
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.
Hi:
You mentioned in your post that you changed ownership on a home in Mexico to an LLC in the states. I lost my mom on Christmas Eve and I am buried in closing her estate. This made me think that it would be smart to change the ownership of my house in Miramar from mine & my wife’s name to an LLC in the states like you did. Would you be willing to share with me the attorney or people who helped you to get through the paperwork
Transferring to another name, or even adding a name, is treated as a sale, and all typical closing costs, including payment of capital gains, transfer tax, notary fees, appraisal costs, Bank trust costs, etc, are required. However, once in the name of an LLC selling can be easier because the new buyer has only insignificant expense and the Mexicans are left out of the process. Once you have the LLC registered in USA the matter goes to a Mexican Notary of your choice.
Hi Joan: Bizarre Mexican rules that consider a name change a sale but I get that it is Mexico. Joan, any chance you can direct me to someone who can get this done and tell me ahead of time what the fees, taxes and closing costs would be?
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dirtsurfer said:
Hi Joan: Bizarre Mexican rules that consider a name change a sale but I get that it is Mexico. Joan, any chance you can direct me to someone who can get this done and tell me ahead of time what the fees, taxes and closing costs would be?
I would contact Pablo Davila at pablo@davila-law.com at 011-52-638-383-3483 or his direct cell 011-52-638-380-5110. As a notary he can tell you the cost of the Mexican portion, and likely refer you to a good attorney in USA who can incorporate the LLC. He speaks very good English.
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dirtsurfer said:
Hi:
You mentioned in your post that you changed ownership on a home in Mexico to an LLC in the states. I lost my mom on Christmas Eve and I am buried in closing her estate. This made me think that it would be smart to change the ownership of my house in Miramar from mine & my wife’s name to an LLC in the states like you did. Would you be willing to share with me the attorney or people who helped you to get through the paperwork
This is the attorney that helped us. He did a great job and we wouldn’t consider using anyone but him. He is currently helping us update our bank trust with current LLC info. We had an American guy help us with north of the border issues during the conversion. They knew each other and worked well together. I can share his info as well. PM me if interested.
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Landshark said:
This is the attorney that helped us. He did a great job and we wouldn’t consider using anyone but him. He is currently helping us update our bank trust with current LLC info. We had an American guy help us with north of the border issues during the conversion. They knew each other and worked well together. I can share his info as well. PM me if interested.
[/QUOTEThank you.[/QUOTE]
Does anyone have a recommendation for a Notario in PP? Our realestate company wants to use Jorge Valdes at Real Consulting but I am thinking of hiring a notario to double check everything.
Not sure why you need an abogado, other than having unnecessary fees added. . A Notario has to process everything. Mind sharing the name of your real estate company??
joanC said:
Transferring to another name, or even adding a name, is treated as a sale, and all typical closing costs, including payment of capital gains, transfer tax, notary fees, appraisal costs, Bank trust costs, etc, are required. However, once in the name of an LLC selling can be easier because the new buyer has only insignificant expense and the Mexicans are left out of the process. Once you have the LLC registered in USA the matter goes to a Mexican Notary of your choice.
I heard from my agent that in 2021, there is a rule that prevents transferring of US LLCs. Anyone have additional details on the new rule?