None of us like to think about it, but we will all eventually leave this life. All of your worldly possessions will be passed on to your rightful heir(s). The percentage of North Americans who own property or are planning on purchasing real estate in Mexico is growing leaps and bounds. The question on their mind, however, is who will inherit property in Mexico that they have purchased when they are no longer around. This is especially true for those who own in the restricted zones and whose title deeds are held either by a bank trust or a Mexican corporation. Unfortunately, most people don’t take the time to protect their investments with the appropriate arrangements. So, this blog aims to educate you on how to do it and why you should do it.
Foreign Will: Inherit Property in a Long Transaction
There are two ways to protect your assets if you own property outside your originating country. You can do it either with a Foreign Will or a Mexican Made Will. Authorities will grant proportionate amounts of ownership of the asset left behind to your spouse (or not common-law partner) and children should you pass without an international will. Similar to the United States Probate Court, the procedures include:
- Marriage license
- Marriage documentation of any assigned assets – not in a will
- Birth certificates of all involved children
- Legal representation for underage children
- Legal identifications for all parties involved
- Any other legal documents the Mexico courts request and/or require
A Costly Process
However, this process can take months, or up to a year, to process. Especially since you need to translate all the paperwork into Spanish. Otherwise, the Mexican courts will not fully recognize all the evidence and submitted documentation. The probate judge will finalize the distribution of the asset(s) once everything mentioned above has been done. The cost of this type of probate can be very costly. This includes the real estate involved needing appropriate attention until the rightful owner(s) take possession.
A Foreign Will is a legal document and is valid in the states of Mexico. But again, the steps to execute such a will have similarities to not having one. Moreover, the heirs must go through a procedure in these exact steps and order to inherit property you currently own.
- The probate must be executed in the jurisdiction of the deceased and their property.
- After the probate, the Foreign Will must be legalized in Canada if the deceased is a Canadian citizen.
- If the heirs are American, the Foreign Will must be apostilled (certified) by the Secretary of State in the United States.
You must translate all documents into Spanish with an official translator after everything else is done. Then, you must the final documentation to and heard by a second probate judge. In most cases, the heirs must be present for the final judgment. The judge will assign a Notary who will read the will once it is said to be legal and ready for execution. Please note, the heirs and/or any financial institutions who hold trust and/or bank accounts for the property must be present, as well. The process can take up to a year and can be very costly.
A Mexican Made Will Makes It Easier to Inherit Property
However, there is an alternative way to protect your Mexico real estate possessions. A Mexican Made Will can save lots of time and money. The process is much simpler and eliminates several legal steps. In about every case, a foreigner who owns property in Mexico must have a bank trust or Mexican corporation that holds the deed. The trust should name the first and second beneficiaries. The benefactor(s) need to produce a properly endorsed death certificate and the trustee official will change the name on the account to reflect the new owners.
Heirs will be the sole benefactor(s) of any real estate assets not held in a bank trust but mentioned in a Mexican Made Will with little to no legal process. Heirs will need to present the appropriate identification and a certified copy of the will. They will then immediately take control of the deceased’s assets. While all the legal paperwork is being verified and sorted out, a court-appointed executor will tend to the property until a Notary can legalize the transaction.
Delays to Inherit Property
There are other circumstances that could delay the transfer of property to the new owners. Such delays include – but are not limited to – underage minors and heirs or lien holders staking claims against the real estate. we highly recommend getting a Mexican Made Will. This will eliminate the question of who will inherit your Mexico property and protect your assets. Mexican lawyers specializing in family estates can advise and create a will that benefits you and everyone involved.
Don’t Let This Stop You
There are many great lawyers that specialize in helping protect foreign assets for expats in Playa del Carmen and all of Mexico. Don’t let the burden of having to leave a will behind stop you from purchasing your dream home in the Riviera Maya. In fact, leaving a well-appointed will is a great way to ensure that your heirs can inherit property and enjoy it just like you will now. Check out the many listings we have of beautiful homes in the gorgeous pristine beaches of the Mexican Caribbean. Think of spending your golden years in paradise, and leaving behind an asset for your heir(s) to truly enjoy.
And remember, at Top Mexico Real Estate…we make it happen!