Estate Planning for US Expatriates Living In Mexico for US assets

Most do not realize that the US legal system does not work well when it comes to transferring assets to deceased owners.  Probate in most states takes one to two years and costs a lot of money in attorneys fees. It also is cumbersome and all information about your estate is public.

If you have assets in the US you should set up a Living Trust which will pass your assets without probate and keep your bequests and value of your estate absolutely confidential.   Without a living trust most states require probate if your US assets values exceed certain minimal amounts.  Living trusts do not required court supervision and keep attorneys fees at a minimum.

Also you cannot count on your Mexican will since it will require probate in the US and may cause other problems and even not be recognized by some states.

A living trust is a document that during your lifetime gives you total control of your US based assets. Upon your death a successor trustee takes over and distributes the assets in any manner you have stated in the Trust. The successor trustee can be a bank or family members or other individuals whether US residents or foreign citizens.

Though you are living in Mexico, if you do have valuable US assets, setting up a US Living Trust is the only solution for fast and inexpensive transfer upon your death. Living trusts used to be used to reduce estate taxes, but now that US estate taxes only apply if the value of each individuals estate exceeds 11 million dollars that is not a consideration.

Want to learn more about living trusts, and US estate planning including US wills, US powers of attorney (much different than those used in Mexico) and health care directives email Don D . Nelson, Attorney at Law at ddnelson@gmail.com and visit our website at www.taxmeless.com 

US Estate Planning if you Live and Work In Mexico

You cannot ignore estate planning if you wish your US and and Mexican assets passing to the heirs you desire. You  need to take the necessary steps to keep the costs and taxes at a minimum.  If you are a US expat living in Mexico, that means you have to put the necessary documents in place in Mexico  and in the USA.  The laws of both countries governing testate succession must be coordinated.

The US imposes its estate and gift taxes on your no matter where you live in the world and no matter where your assets are located in the world.  Mexico currently has no estate taxes but they are talking about changing that.

The US side of the process involves Wills, Trusts, Powers of Attorneys and Health Care Directives.  These documents will direct the disposition of your Assets located in the USA.  It may also involve a program of gifting in order to keep your US taxes down.  In Mexico you may need a Mexican Will and must take steps to make certain your Fideicomiso passes your Mexican real estate to the proper heirs. You will need a Mexican attorney or accountant to help you with these documents.

  If you do it right, you can save tens of thousands of dollars in probate fees,and often a lot more in estate taxes.  We have been doing estate planning for over 30 years.  Read more and download your estate planning questionnaire here.  After you fill it out, send it to us and we can help you implement a plan that achieves your personal wishes.

Even Mexicans who are not US Citizens or residents, need to do US estate planning if they have real estate, corporations, or other assets located in the US.  Proper advance planning also saves a lot of costs your heirs will have to incur if it is not done in advance.