Many people are excited at the possibility that soon you may no longer be required to hold a bank trust (Fideicomiso) to own coastline real estate in Mexico. But here is a good reason why you should not throw the bank trust option out the window just yet!
Some people associate the added step of the bank trust to be extra paper work that they don’t want to deal with. With that being said, as I mentioned in a previous blog not too long ago, some are holding out on buying property in this moment with high expectations that the bank trust law will be diminished, and finally you can directly hold the title to your Mexico real estate investment.
But wait a minute! Here’s something to consider- like everything, there are pros and cons, and the Fideicomiso actually has some pretty big pros, which may make you want to change your mind about taking the option not have one.
Even if the bank trust law gets lifted you will still have the option to hold a bank trust if you want to.
And here is a good reason why you should still consider putting a bank trust in place!
While realistically there may be extra paperwork in the beginning, which is really just more like an added step in the buying process, this upfront investment of time can save you, or your loved one, future headaches.
The Fideicomiso, otherwise known as the Mexico Bank Trust, is more of a safeguard than you think. While nobody ever wants to consider this fact, eventually one day your property could be handed down to someone else, and having the bank trust can make inheritance a seamless process here in Mexico.
With a bank trust in place, your property will be easily handed over to your designated beneficiary simply by paying the paying a nominal fee to change the name on the registered document. I should mention that your beneficiary must be mentioned in your will.
However, if there is no bank trust then the property will go through probate before being handed over to the new beneficiary.  This can be a time consuming process which can be completely avoided by having the bank trust set up.
Learn more about Fideicomiso in Mexico
It is natural that people may have some additional questions or concerns about having to hold a bank trust in order to own property in some areas of Mexico, because anytime we are introduced to something new we must take time to learn and understand.
But once you have spoken with a knowledgeable Mexico real estate agent and have done your homework you are sure to find the process is completely safe and easy.
Reminder: Even with a bank trust, you are the sole owner and beneficiary of the Mexican property.  Your property cannot be taken from you for any reason and you can treat the property the very same way as if you held the title yourself. The bank trust will act as a safeguard for your property ownership.
For more information about bank trusts and owing property in Mexico download our free easy to read Mexico Real Estate EBook! If you have additional questions our team is here to help with whatever you need!
