Inheriting property

If I leave my house in my will to my daughter who has no Mexican legal status, how difficult will it be for her and what are the costs she will have to pay?

You would be best advised to consult a Notario. My preference is Luis Enrique Ramos Bustillo who is Notario #2 and is located in San Antonio Tlayacapan. 766-0190
He prepared my Mexican will to leave my house to the stepson who is the executor of my estate. I was told two years ago that the process of probate takes about two weeks and that the cost is very minimal. And, he does the procedure. He speaks perfect English and was most helpful. When I bought the house, I could not name my stepson as beneficiary on the deed because he was not a blood relative (nor do I have any). The will is the way around this. Painless and sweet... and that will is in my stepson's possession in Canada.

If she doesn't have legal status in Mexico she will have to pay capital gains tax. Not sure how much it is.

I do not think that is true Gamina. I believe it is just the land transfer tax because she is being "gifted" the property. However if she SELLS the property that she has inherited then I do think that "capital gains" will come into it unless she has attained the correct immigration status.
See a Notario!

I have done many probate cases. Adjudicating property can be easy, the person never has to step foot in Mexico. With a power of attorney all funds from sale sent to heir's US/foreign account. If they have no visa in Mexico then they can expect to pay 25% of sales price as a withholding. If the number is big some heirs get their visas.

Thanks Spencer.

ferret wrote:I do not think that is true Gamina. I believe it is just the land transfer tax because she is being "gifted" the property. However if she SELLS the property that she has inherited then I do think that "capital gains" will come into it unless she has attained the correct immigration status.
See a Notario!

I think you are right about selling the inherited property. I knew something was wrong with my statement when I typed it, but couldn't remember what.

There is no inheritance tax so property passes from one person to heirs BUT there are transfer taxes so each change incurs about 5% in fees based on tax value. Then when the next bonafide transfer happens to a 3rd party, tax basis is the deceased person's basis.

ferret wrote: ...was told two years ago that the process of probate takes about two weeks...

I don't think that part reflects reality at all. You might want to check if that's important to you.

I did. One person inheriting a clean deeded property is a simple transaction without complications.
Notario #2 closed the deal on my property and it was he that did my will and it will be he that Rob contacts... along with Spencer.

How long does probate take? Adjudication is quickest and...

1) Adjudication (changing title) to real property when there is a beneficiary clause in the property deed:
The spouse or child (direct deed beneficiary clause only applies to spouses and parent/child relationships) presents the death certificate of the owner (foreign ones with apostilles / legalizations and official translations), the original or certified copy of the property deed and the marriage or birth certificate (or adoption papers) (foreign ones with apostilles / legalizations and official translations) to prove the relationship and right to use beneficiary clause in deed instead of having to file a formal probate action.

a) Timing starts from when the death and marriage / birth certificates are ready and then the Notary Public can prepare the adjudication deed within a few days to a few weeks to be able to sign the deed. If the certificates plus apostilles / legalizations and official translations take a month and two weeks to be ready to sign now you are 6 weeks into the process.

b) The Public Property Registry will require the Notary to present the official responses from two search requests made, one to the Public Instrument Archive and the other to the Social Prosecutor’s office. These responses are to show that there was no will granted after the last designation of a beneficiary in the deed and if there was and doesn’t match who is trying to adjudicate the property into their name, the new deed cannot be recorded.

The response from the Social Prosecutor takes one day, their office is located in the Court Complex in Guadalajara. The Public Instrument Archive takes about 2 weeks for responses. So now you have a minimum of 2 weeks added into the calculation.

c) Property deeds take an average of two months from signing to final recordation at the Public Property Registry. There are forms the notary fills out, taxes to be paid and a p bunch of paperwork behind the scenes most people never see.

Minimum time mas o menos for an Adjudication with a beneficiary clause for real estate, about 3-4 months from starting to prepare to do it to having the final deed in hand with new owner (heir).

Crap. Well, are you saying that a will takes longer? Or?

A will takes longer, actually did a notarial testate probate and all was done in a bit under 60 days which is sort of a world record and after the probate is done then you the deed signing and registration so under optimal circumstances 4-5 months minimum

Rosa Venus, my apologies. I obviously misunderstood what I was told. My head was not in a great place at the time that I purchased my little house so I hope you'll forgive me.

No need to apologize at all, ferret! You're always very careful with information and I appreciate that.