Plan your real estate inheritance
In Mexico, over 60% of properties lack a will to support their transfer. This lack of planning generates family conflicts, succession lawsuits lasting years, and legal costs that can consume up to 30% of the property value. Understanding the inheritance process is fundamental to protecting your family.
Will vs. intestate succession
The difference between having a will and not having one is enormous in terms of time and money. A public will before a notary costs between $2,000 and $5,000 MXN and is processed in a single visit. Without a will, intestate succession requires a court proceeding that takes 1 to 5 years, with lawyer, expert, and court costs exceeding $50,000 MXN.
Types of wills in Mexico
The Civil Code recognizes several types of wills. The most common and recommended is the open public will, granted before a notary with two witnesses. There is also the holographic will (handwritten), the closed public will, and special wills such as military, maritime, or foreign country wills. For real estate properties, the notarial will is the safest option.
September: Will Month
Every September, the National Notary Association offers discounts of up to 50% on wills. It is the ideal opportunity to formalize your wishes. Requirements include: official ID, birth certificate, property data, and heir information. You do not need to bring deeds or property titles.
Testamentary succession: step-by-step process
When a property owner with a will passes away, the process is: 1) Obtain death certificate, 2) Locate the will in the National Will Registry, 3) Visit the notary to open succession, 4) Appoint executor (estate administrator), 5) Inventory and appraisal of assets, 6) Tax payments (ISR for capital gains may apply), 7) Award and deed transfer to heirs. The process takes 6 to 12 months.
Taxes on property inheritance
Mexico does not have a direct inheritance tax. However, when deeding the property to the heir, ISR is generated when the value exceeds a certain threshold (currently around 700,000 UDIS). Additionally, public registry fees and local transfer taxes are paid. A good notary will calculate these costs before the award.
Co-ownership: multiple heirs for one property
When several heirs receive the same property, co-ownership is created. This complicates future sales because everyone must agree. The recommendation is that the will clearly specify what percentage corresponds to each heir, or better yet, designate a single heir for each property and compensate others with different assets or money.
Final recommendations
Make a will as soon as possible, update it if your circumstances change (marriage, divorce, new children, new properties), keep your property deeds in order, and communicate to your family where your will is. Investing $3,000 MXN in a will today can save your family over $100,000 MXN and years of legal conflicts tomorrow.
