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Reconciling U.S. and Mexico Law for Tax and Estate Planning: Trusts, Real Property, Situs Wills, Wealth Transfers

Note: CPE credit is not offered on this program

Recording of a 90-minute CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Tuesday, May 11, 2021

Recorded event now available

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This CLE course will provide estate planners with a comprehensive guide to estate planning tax challenges and opportunities for clients with a tax presence in both the U.S. and Mexico. The panel will discuss the U.S. tax law and treaty provisions governing tax and fiduciary rules in both Mexico and the U.S. The webinar will focus on the U.S. tax and other consequences for Mexican clients with a U.S. tax presence and U.S. taxpayers who own or plan to invest in Mexico-situs real estate and other assets.

Description

The ties between the U.S. and Mexico result in significant economic migration. Many U.S. citizens and permanent residents have property interests in Mexico and vice-versa. Estate planning counsel and advisers must identify the tax and wealth transfer planning rules and opportunities specific to U.S. and Mexican citizens with assets and presence in both countries.

Mexican law has neither an estate tax per se nor a deemed disposition regime for property passed through inheritance, nor does it provide automatic right-of-survivorship in joint tenancy or spousal property ownership. At the time of marriage, spouses must indicate whether the marriage entails joint or separate property treatment and this election can take precedence over an asset's title.

In many cases, the transfer of Mexico-situs property to non-Mexican taxpayers is a taxable transaction requiring Mexican tax withholding. Tax advisers to U.S. citizens with a presence in Mexico must ensure that U.S. and Mexican wills, trusts, and transfer provisions are appropriately coordinated to avoid costly tax consequences.

Mexican law also imposes restrictions on direct ownership of real property by non-Mexicans in specified locations. U.S. taxpayers contemplating property purchases or transfers of covered Mexican property must know the best entity requirements to hold Mexican assets.

Listen as our experienced panel guides advisers in planning estates of clients with U.S. and Mexican tax presence, including interests in business entities, real estate, and financial accounts. The panel will cover the legal and tax considerations when planning for each type of asset's disposition.

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Outline

  1. Mexicans in the US
    1. NRAs, Tax Residents, Domiciliaires
    2. US Estate Taxes
    3. Unlimited Marital Deduction
    4. Gifting
    5. Review of most common strategies
  2. Americans in Mexico
    1. Legal and Tax Residence
    2. Mexican Estate Taxes
    3. Gifting
    4. Marriage Contracts
    5. Title
    6. Mexican Real Estate Trusts
    7. Beneficiary Designations
    8. Planning Documents
    9. Jurisdiction
    10. Probate
    11. Review of most common strategies
  3. Importance of Coordinated the US and Mexican Estate Plans

Benefits

The panel will review these and other relevant topics:

  • What considerations impact U.S. taxpayers wishing to hold real estate in one of Mexico's "restricted zones"?
  • Coordinating U.S. estate plan with Mexican wills and trusts
  • Treatment of inheritance of Mexican-situs property
  • Differences in U.S. and Mexican residency rules for purposes of sourcing taxable income

Faculty

Rodriguez, Raoul
Raoul Rodriguez, CFP, EA
Wealth Manager
Pinnacle Advisory Group

Mr. Rodriguez has worked as a Wealth Manager for over 20 years, including 18 years at his own firm, Mexico Advisor. He...  |  Read More

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