Is there inheritance tax under Mexican Law?
As the Mexican law stands now, there is no inheritance tax. Meaning that, when a person is recognized as heir and inherit estate from decedent, or under a bank trust if a person (trust beneficiary) name someone as beneficiary in the first place upon death, and consequently assume the trust rights, there is not tax due to such succession. Now, there is an international organization “OCDE” that publish an article called “The Role and Design of Net Wealth Taxes in the OECD”, where is recommending to countries, among others, Mexico, to implement such tax. This situation has caused speculation, where specialists are already analyzing its impact, possibilities, legal ramifications, etc. This may or may not be implemented by the new government after December 1st, 2018. Still is something to consider, in a way that people should put in place wills or trusts under Mexican law, as if this is ever brought to the congress and passed, there could be more legal arguments to contest the implementation of this new tax, if there is already a will or trust in place before the new law.
Lic. Eduardo Rosales G. Attorney at Law
