Mexican home in U.S. Living Trust?

[mexicoblue]

I'm thinking about creating a US Living Trust. Anyone know if we can put our Mexican homes into a U.S. trust? I know it wouldn't be cheap to do, but don't know if it is even possible.

[mexicoblue]

I'm thinking about creating a US Living Trust. Anyone know if we can put our Mexican homes into a U.S. trust? I know it wouldn't be cheap to do, but don't know if it is even possible.

[traderspoc]

A will or trust prepared under the laws of the United States may not be effective to dispose of your property that is located in foreign country. if you have such property, you will need a will or trust prepared under the laws of that country, particularly if your foreign assets consists of real estate.

[maxx]

Unless your estate is over 5,000,000 there is no federal tax. There could be a state tax depending on where you live in the US.

[Aquaponicsman]

Yes, you can. You can put any foreign assets into a US Living Trust. However, meeting with your Notario Publica to coordinate trust documents is a wise idea, as it is to coordinate your US or Canadian will, with your Mexican will. It will save a lot of hassle when the time comes, when you make these preperations in advance.

Setting up Power of Attorney, Doctor to Proclaim (death), Transport for final wishes, Notification of Death to the Embassy, who will return documentation of death which heirs will need for handling affairs in the US and here as well as pre-arranged final disposition (cremation, burial, transport to another location, etc.) is always easier on heirs.

[Intercasa]

I have seen it but you would need 2 trusts, the Mexican one to be controlled by the US entity.

[Intercasa]

Yes you can, call me and we can help evaluate options, it isn't cheap and there may be a few cheaper options to achieve the same thing.

[jkgourmet]

Unless your estate is over 5,000,000 there is no federal tax. There could be a state tax depending on where you live in the US.

Just to let you know that a standard Living Trust has no effect on ANY estate taxes due to the fed or state. The use of a standard Living Trust is primarily to avoid probate (and the resultant costs and public disclosure of assets). The estate taxes will still need to be paid.

also note that in 2012, the $5million federal exemption was increased to $5.12million. What the legislature does in 2013 is everybody's nightmare.

Although I am NOT endorsing a DIY estate plan and documents for anyone who has assets, a great site for information regarding Living Trusts and other general US legal issues: http://www.nolo.com/legal-encyclopedia/living-trust-faq-29036-9.html

[hkrause]

We had a trust in the US while living there, and have things spelled out for disposition of assets. When we moved to MX, we had a will made and indicated that the house here goes to the US trust. The Notario didn't seem to think it would be a problem.

Heather

[MichiganMama]

I did the same thing, Heather. I have a U.S. trust and a Mexican will which covers my Mexican real estate. My notario said that I do not need a Mexican trust, that the American trust is sufficient, but that I did need a Mexican will because of the real estate. If you have your will done in September, the government mandates that it be half price. I think that I paid 1,800 p. about two years ago to the notario for the will.

[traderspoc]

I agree with Michigan mama, avoid a foreign trust. keep it simple and use a Mexican will.

IRS has changed Rules for reporting foreign trusts

U.S. beneficiaries of foreign trusts are subject to IRS reporting requirements, if they receive a distribution from the trust. IRS reporting includes: the name of the trust, the aggregate amount of the distributions received from the trust during the trust year (satisfied by filing Form 3520 with the IRS).

Form 3520-A is the annual information return of a foreign trust with at least on U.S. owner, which includes:

1. Annual tax Information about the Foreign Trust
2. Annual Tax Information about its U.S. Beneficiaries
3. Annual Tax Information about any U.S. person who is treated as an owner of any portion of the foreign trust

Form 3520-A is filed with the Internal Revenue Service Center P.O Box 409101, Ogden, Utah 84405 and is due by the 15th day of the 3rd month after the end of the trust’s tax year.

see irs web site for more information

http://www.irs.gov/instructions/i3520a/ch01.html