How to Understand Mexican Real Estate

Introduction

You looked at a gorgeous piece of oceanfront property in Mexico and you're hooked. Your dream of retiring by the beach is about to come true. But there are things you need to know when entering into a contract. Before signing the purchase/sell agreement, make sure you understand how you will hold title to your piece of Mexican paradise.

Instructions

Difficulty: Moderate

Things You'll Need

• A trustworty real estate agent, preferably from a well-known company.
• A reputable escrow company
• A good Notario Público (Notary Public)

Steps

1

Step One

If your property is located within 60 miles of the border or 30 miles from the coast, you will need a "Fideicomiso" or Mexican Bank Trust.
The Fideicomiso protects your investment by allowing the Mexican bank of your choice to act as the Trustee of the Trust and you as the Beneficiary. This means the Mexican bank or Trustee takes instructions from the Beneficiary only--you.

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Step Two

The duration of the Fideicomiso is for a period of 50 years and is renewable for an additional period of 50 years.

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Step Three

As the Beneficiary of the Trust, you have the right to occupy and possess the property, rent it out, build on it, add to it or make any improvements you deem necessary.

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Step Four

Get a title search. Get an extensive chain of title, one that goes back more than 1 or 2 owners of record.

5

Step Five

Invest in title insurance. Title insurance is available by reputable U.S. title companies. Avoid unpleasant surprises.

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Step Six

Use the services of an escrow company. They will hold your money in an insured escrow account until yout Trust is complete.

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Step Seven

Make sure your deed of title or "escritura" has been duly recorded with the Mexican Property Tax Office (Catastro) and the Public Registry of Property and Commerce (Registro Público de la Propiedad y el Comercio).

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Step Eight

Pay your property taxes each year. "Catastro" will not mail you a notice. Make sure you ask your real estate agent if you can set up an account for the purpose of paying your property taxes, as you cannot mail the payment or wire the funds from your bank in the U.S.

Tips & Warnings

• Your property is not an asset of the Mexican Bank. The Fideicomiso is a trust agreement and is like an estate trust, giving you all the rights of ownership. The bank does charge an annual fee for its services.
• You can name a U.S. corporation as the Beneficiary of the Trust.
• Have the "escritura" translated by a reputable translator.
• Until your receive your recorded "escritura" and all rights have been transferred to you, the legal owner of record is still the previous owner.
• Do not let anyone sell you ejido land. You will never obtain a legal title for it. Ejido land is land set aside by the government of Mexico for its indigenous people. It cannot be sold to foreigners.
• In Mexico, you cannot record transfers of title without going through a Notario Público.

How to Settle Your Living Trust

Introduction

If you are a friend or loved one of someone who has recently passed away, you are in a common but painful position of mourning. This friend or loved one may have left benefits in the form of a living trust, and it is possible that you were remembered in this document as a beneficiary of some kind. If you are wondering how to settle the trust, the answer is simple. Read on for more information.

Instructions

Difficulty: Moderate

Settling a Living Trust

Things You'll Need

• Attorney

Steps

1

Step One

Wait to be contacted by the successor trustee, which is the person to whom the trust passed at the time of death. This person is responsible for carrying out the orders of the trust.

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Step Two

If you are the successor trustee, carry out the following steps.

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Step Three

Make sure that any creditors of the deceased have been paid as well as any income and death taxes that apply.

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Step Four

Hire an attorney to make sure you have not missed any taxes or other important factors. You are now personally liable for these taxes. The attorney will also help you to settle the estate.

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Step Five

Contact the inheritors and set up transfers of assets as required by the trust and as instructed by the attorney.

How to Leave Money to a Pet in a Will

Introduction

The late Leona Helmsley reportedly left $12 million to her dog. For people who don't like animals, the idea of including them in a will is ridiculous. To animal lovers, it's a reassuring. Unfortunately, the law considers pets as property and one property can't leave property to another, including cash. But there are actions we can take to insure our pet's well being if they should outlive us. Read on to find out how.

Instructions

Difficulty: Moderately Easy

Steps

1

Step One

Be clear about what you legally can and can't do for your companion animal after you're gone. You cannot make your dog a beneficiary, your cat cannot serve as your executor and the $10,000 you bequeath to your African Gray will probably end up with a worthless relative who decides to challenge the will. You can, however, place any amount of money you choose into a special trust to fund the precise care you wish for your pet or pets – if pet trusts are recognized in your state.

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Step Two

Choose a trusted friend or family member to serve as trustee of the money you set aside for the care of your companion animal. It would be a good idea to assign a co-trustee so they can keep an eye on each other. You should also choose an alternate trustee in case one or both of the co-trustees pass away before your pet.

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Step Three

Make sure the people you choose to serve as trustees understand they'll be legally responsible to make sure the money is spent on your pet. A pet trust is not just a request. A pet trust is an enforceable trust and the pet is indeed the primary beneficiary.

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Step Four

Exercise your option not to leave your pet's care to a friend or relative since will or no will, it's never the animals who end up trying to get all the money. It's sometimes more prudent to leave a no-kill, non-profit animal rescue a certain amount of money in a will in exchange for lifelong care of a pet or pets.

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Step Five

Consider a provision in your legal document that any money left in the trust after the animal dies goes to a specific charity or is divided among several specific charities. This is smart because if someone challenges the will, they'll have to not only fight your estate for the money, but all the charities you've named as well.

Tips & Warnings

• The ASPCA.org provides a handy pet trust state laws chart in the "Planned Giving" section, but double check your state's requirements with an attorney before completing any legal documents.
• If you have multiple pets or plan to have additional pets in the future, you may wish to create a trust for all the pets you'll have in your lifetime, rather than a separate trust for each.

How to Get Power of Attorney for a Military Deployment

Introduction

Before you deploy, get a military power of attorney for your spouse or the person taking care of your financial matters at home. It won’t cost you a thing, and it will alleviate stress for you and your family after you deploy.

Instructions

Difficulty: Moderately Easy

Things You'll Need

• Military power of attorney

Steps

1

Step One

Designate a person, usually a spouse or a family member, who will take care of your financial and personal matters while you are deployed.

2

Step Two

Determine the length of time a power of attorney will be necessary. Depending on the deployment schedule, this is usually 6 months to a year.

3

Step Three

Locate a local U.S. Armed Forces Legal Assistance office. You are not required to pay and you can use their services if you are active duty, retired active duty or a dependant of either.

4

Step Four

Consult with a legal assistance attorney to create a military power of attorney.

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Step Five

Specify the actions you want included in a special power of attorney. If you choose a general power of attorney, you will give total control of your finances and personal matters to the person you designate.

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Step Six

Sign the power of attorney before you deploy! Even the simplest of tasks, like shutting off utilities, will be impossible without that signed piece of paper.

Tips & Warnings

• You can use a civilian lawyer to get a power of attorney, but if your power of attorney will be used in a different state, it is best to have a military power of attorney. Although anyone can personally refuse to accept them, military power of attorneys will be accepted in any state, no matter where they were drafted.
• If you choose a general power of attorney, be sure you trust the person you designate. They will have complete authority over all of your financial matters.

How to Evaluate a Living Trust

Introduction

A living trust is simply a trust that you set up while you are still alive. Once you die or become incapacitated, a trustee of your choosing will have the power to make decisions regarding your trust. This allows you to have more control over your assets, both while you are here and when you are not, instead of leaving your decisions up to a probate judge. There are three key things to think about when considering a living trust.

Instructions

Difficulty: Moderate

Steps

1

Step One

Decide whether or not you want to appoint a trustee to oversee your assets, if and when you become unable to do so. This person will be given full authority over the trust, so it is important to choose a neutral third party who won't stand to gain from controlling your assets. For example, you might want to choose a lawyer, rather than a family member, to be your trustee.

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Step Two

Determine how important it is for you to control the allocation of your assets, rather than relying on the probate process. A living trust will allow you to do just that, to ensure that your assets will be left to exactly whom you would like. You will most likely be able to avoid probate completely, if you decide to make a living trust.

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Step Three

Establish how important it is for you to protect your loved ones from estate taxes and others who may try to seize your assets after you pass on. This is another benefit of a living trust, since probate can often leave loved ones with 60 percent or less of your assets.

How to Decide if you need a will, a living will, a living trust or all three.

Introduction

How to Decide if you need a Will, a Living Will, a Living Trust or all three.

Instructions

Difficulty: Easy

Things You'll Need

• You'll need to read this short article.
• Discuss it with your family members and loved ones.
• Then get to work.

Steps

1

Step One

A Will, a Living Will and Living Trust
(Do you need one, two or all three?)


To write a will you must first know what a will is, what a will covers and doesn't cover, and what other legal estate planning documents you might want and need. A will, a living will, and a living trust are important legal documents. Every adult American should probably have one of each AND understand what each does. So that you will know the difference between a will, a living will and a living trust, I will briefly describe them and what each is used to accomplish.

What is a LIVING TRUST? You can put property into a living trust while you are still alive. When you die, your property automatically goes to your heirs without going through Probate Court, which can be very time consuming as well as expensive. You can revoke a living trust at any time if you change your mind, or simply amend and update it as situations change during your lifetime.

What is a LIVING WILL? A living will is a legally binding document that dictates one's wish NOT to be kept alive by artificial life support equipment in the event of a terminal illness or condition. By limiting treatment, a living will sets limits on hospital bills which can drain or even completely wipe out your assets, leaving little in your estate for your heirs.

What is a WILL? A will is a legal document that dictates how your property (real property, bank accounts and insurance benefits, etc.) is to be distributed after your death. It may also designate guardians for your children. Your will MUST pass through Probate Court before your estate can be distributed to your heirs. Whether you need a simple or a sophisticated will depends on your assets and you should know your situation well enough to determine if you need professional assistance in writing or filing them.

All three of the aforementioned legal documents can work together to satisfy your various estate planning needs. A living trust permits your financial assets to go to your heirs without the time and expense of probate. A will is used to cover all the property not included in the living trust; and remember, without a will the state will determine who gets your remaining property after taxes and fees have been paid.

A number of simple legal 'kits' containing fill-in-the-blank sample documents like the ones mentioned above are available at your local library as well as on the Internet. These kits are generally inexpensive and if you have the confidenc

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Step Two

Now that you've read this article, show and discuss it with your family members and loved ones.

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Step Three

Now, do further reasearch if you feel it's necessary either online, at the library or here at e-How; or, see a qualified attorney if you feel your case requires the services of a licensed professional. Ask for referrals from trusted, knowledgable friends or simply do a search of your local telephone directory.

How to Choose an Agency to Set Up a Memorial Fund

Introduction

When a friend or family member passes away, there is often an urge to make a charitable contribution in that person's name. However, you may not know the best charity to which you should donate your money. If a close friend or relative has recently passes away, you can choose an agency with which to set up a memorial fun in order to give people a donation option.

Instructions

Difficulty: Moderate

Things You'll Need

• Information about the deceased's donation preferences
• Will

Steps

1

Step One

Discuss memorial fund options with your loved one if death is a certainty in the future.

2

Step Two

Review the deceased's will to see if specific instructions were given regarding memorial funds.

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Step Three

Collect information about where the deceased has donated money in the past few years or where money from the estate will be going.

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Step Four

Consider churches at which the deceased was a member.

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Step Five

Consider organization fighting the disease causing the deceased's death, if that is the case.

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Step Six

Call each organization on the list to find out about the possibility of a memorial fund. Some simply are not set up to run such programs.

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Step Seven

Talk with other friends and family members of the deceased for input about where the money should go.

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Step Eight

Choose the organizations that most need the money or that were most dear to the deceased.