I would like to continue this conversation by first providing information regarding the trust I am referring to: " Foreigners are welcome to invest in property along the coast, but there are restrictions. The most important restriction is contained in Article 27 of the constitution which states "that foreigners cannot own property within 100 kilometers (60 miles) of the border and 50 kilometers (30 miles) of the coastline." The government
, however, provides two ways to get around this restriction - through the use of a Trust (Fideicomiso) or a Mexican corporation.
How Does the Trust Work? - Three parties are involved in the trust:
The trustor (the owner of the original property)
The trustee (which is the bank)
The beneficiary (the person who will receive the benefits
of the trust.)
The Trust, which in Mexico is called a Fideicomiso, does not give direct ownership to the foreign
beneficiary. Instead, it establishes the legal basis by which the bank holds legal title to the property in order to act on the foreigners behalf. This trust deed assures the foreign buyer of all rights and privileges of ownership. The Foreign Investment Law
, a Constitutional amendment created in 1973 and amended again in 1994, allows the trust to be established for a term of 50 years and is renewable any time during its existence, forever.
The Bank (trustee) holds the trust deed for the person who purchases the property (beneficiary). The property is not part of the bank's assets and cannot be liened or attached for any other obligations. You, the purchaser, are the beneficiary and have all rights of enjoyment of the property including the ability to remodel, lease, mortgage, pass to their heirs or sell the property at any time.Johnathan in this case the deceased was the beneficiary and his daughter is the substitute beneficiary.