Talking About Old Trusts
When the Mexican government grants a permit for a bank to create a fideicomiso on behalf of a foreign national, it instructs both the bank and the Notario to includes a number of obligations that are included within the clauses of the fideicomiso, while granting a 50 year term for the trust beneficiary owners (renewable) to use and enjoy the property held under trust.
The first Fideicomisos began in 1973, and they all expired around 2002/3 and most, not all of them, where renewed months ahead of the expiration date on them, thus there are a number of 30-year fideicomisos created from 1990 to 2000 that are bound to expire anytime soon.
- Why does the fideicomiso expire? Because the term granted in the permit has been reached or has elapsed already,
- Why aren’t banks warning clients about this? Because they are neglectful and eventually it winds up costing the client, not the bank, to renew.
- What is involved in getting the fideicomiso renewed: A) Approaching the bank and instructing them in writing to seek a new trust permit; B) Paying the bank its fees (agreed within the clauses of the trust agreement); C) Paying the government fees to grant a new permit with a fresh 50 year term. D) Getting a new survey, No lien certificates and a new appraisal (I know its ridiculous!): E) Paying notary fees; F) Pay state recording fees, and G) Recording the trust with the National Register for Foreign investment.
Rafael Solorzano
Attorney at Law / Licensed Exclusively in Mexico
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