In Mexico, the trust is a widely used tool in various areas, from the business sector to the patrimonial sector.
A trust is a legal arrangement in which a person or entity (known as a “settlor”) transfers ownership of a good or asset to another person or entity (known as a “trustee”) for administration for the benefit of a third party (known as a trustee). as “beneficiary”).
This figure is commonly used in Mexico in various areas, from the business sector to the property sector. In a trust Mexico, the settlor retains the right of ownership over the transferred good or asset, but assigns its administration and benefits to the trustee, who must act in accordance with the instructions established in the trust agreement.
The trust is a very useful tool for various purposes, such as asset protection, investment management, succession planning, among others, and that is why its use has spread in Mexico and has consolidated as a very important legal figure. used in various areas.
Trust in Mexico
In Mexico, there are various types of trusts that are used for different purposes. Some of the most common are:
Guarantee trust: This type of trust is used to guarantee the payment of a debt. The trust Mexico is created to receive and manage the necessary resources to cover the debt in case the debtor is unable to do so. The beneficiaries can be the creditors or the debtors themselves.
Investment trust: These trusts are used to invest in various financial instruments, such as stocks, bonds, real estate, among others. The investor’s resources are grouped in a trust and managed by a team of professionals, with the aim of generating returns for the beneficiaries.
Real estate trust Mexico: This type of trust is used to invest in real estate, such as buildings, land, commercial premises, among others. The investors’ resources are used to acquire and manage these assets, and the returns are obtained from the rental or sale thereof.
In general, trusts are a very useful tool to protect and manage various types of assets and resources. Its use has spread in Mexico in different areas, such as the business, patrimonial and financial sectors, and that is why there are various types of trusts adapted to the needs of each situation.
Real estate trust
The real estate trust is one of the most common uses of the trust in Mexico, especially in the real estate sector. This type of trust allows investors to acquire real estate through a trust and obtain benefits from its administration.
Among the advantages of real estate trusts, is the possibility of diversifying the investment in real estate, without the need to make a large initial investment. In addition, the administration of real estate remains in the hands of professionals, which reduces the risks for investors.
On the other hand, some of the disadvantages of this type of trust may be the lack of direct control over real estate by investors, as well as the possibility that the returns obtained may not be as high as expected.
Some examples of real estate trust Mexico are IUS Consulting, My Trust Riviera Maya, among others. These trusts have managed to consolidate themselves in the market and offer investors an interesting option to invest in the real estate sector.
The use of the trust Mexico in the business sector is very common in Mexico, and it is used for various purposes. For example, business trusts are used for the administration of pension plans, for the management of resources destined to specific projects, as well as for the separation of assets and liabilities in a company in the process of restructuring.
An example of a business trust is a company’s pension fund, which can be managed through a trust to guarantee the correct management and distribution of resources. Another example is energy investment trusts, which are used to finance renewable energy projects and have gained great importance in Mexico in recent years.
In general, business trusts are a very useful tool for managing resources and assets in the business sector, and their use has been consolidated in Mexico as a common practice in various situations.
How to make a trust in Mexico?
To make a trust Mexico, the following steps must be followed:
- Define the object of the trust: It is important to define the object of the trust, that is, the good or asset that is going to be transferred to the trustee, as well as the obligations and responsibilities of the parties involved.
- Select the trustee: The trustee is the person or entity in charge of managing the trust and complying with the obligations established in the trust agreement. It is important to select a person or entity that is trustworthy and experienced in the type of trust to be created.
- Create the trust agreement: The trust agreement is the document that establishes the terms and conditions of the trust, as well as the obligations of the parties involved. It is important that this document is drawn up by a lawyer specializing in commercial law.
- Register the trust: Once the trust contract is created, it must be registered with the Ministry of Economy or with the National Banking and Securities Commission, depending on the type of trust.
- Comply with tax obligations: It is important to comply with the tax obligations that derive from the trust, such as paying taxes and filing tax returns.
It is important to mention that the creation of a trust can be a complex process, so it is recommended to have the advice of a lawyer specialized in commercial and tax law.
Frequently asked questions
What is a trust in Mexico?
A: A trust is a legal arrangement in which one person (settlor) transfers property or assets to a third party (trustee) to manage for the benefit of the beneficiaries.
What is a trust used for in Mexico?
A: Trusts are used for various purposes, such as asset management, asset protection, estate planning, investment projects, and the purchase of property in restricted areas.
Who can be parties to a trust?
A: The parties involved in a trust are the settlor (who transfers the assets), the trustee (usually a financial institution that manages the assets), and the beneficiaries (who receive the benefits of the trust).
How long does a trust last in Mexico?
A: The duration of the trust may vary depending on its purpose and the applicable legal provisions. For the purchase of properties in areas restricted by foreigners, the duration is 50 years, renewable for equal periods.
What are the costs associated with creating and maintaining a trust in Mexico?
A: Costs may include attorneys’ fees, trustee fees, formation and maintenance expenses, as well as applicable taxes. These costs may vary depending on the institution and the type of trust.
Trusts in Mexico are widely used legal figures in Mexico, both in the business sector and in the patrimonial and family sectors, which offer multiple benefits for the protection and management of assets and resources. If carried out properly and in compliance with current regulations, the trust can be a very useful tool for investment diversification, asset protection, and management of specific projects.
It is important to have the advice of experts in the matter, and to hire a good company for the administration of the trust, in order to guarantee its correct management and compliance with the established obligations.
In short, the trust Mexico is an interesting option for those seeking to protect and manage their assets efficiently and safely in Mexico.