Changing Beneficiaries in a Fideicomiso

Changing beneficiaries in a fideicomiso (bank trust) is not something most people think about when they first set it up, but it’s an important step to review periodically. The process itself is fairly straightforward, but it does require proper documentation and coordination with the bank.

First, you need to confirm who the current beneficiaries are, since people sometimes assume someone is still listed only to find out later that they were removed or never added. If a beneficiary has passed away, the bank will require a death certificate. If the death occurred outside of Mexico, that certificate must be apostilled, notarized, and translated into Spanish.

Once the documentation is ready, your attorney or the bank will request additional information from you and prepare an amendment to the trust. This amendment formally updates the beneficiary list, ensuring that the new beneficiaries are legally recognized as the future holders of the trust rights.

Costs of Extinguishing a Fideicomiso

Extinguishing a fideicomiso (bank trust) is a process that carries certain costs, and the exact amount will depend on the bank administering your trust. That said, most banks follow a similar structure:

1. Notice to the Ministry of Foreign Affairs (SRE):

When you purchased the property, you needed a permit from the Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores) to establish the fideicomiso. When extinguishing it, the bank must notify the Ministry that the trust will no longer be in effect. This fee is typically around US $300.

2. Bank Trust Fees:

The bank itself will charge an administrative fee for processing the termination of the trust. This is usually in the range of US $1,000, though the exact cost varies depending on the institution.

3. Notary Public (if required):

Some banks require that your instruction letter be ratified before a notary public. If so, you can expect an additional fee of roughly US $300.

In total, most fideicomiso extinguishments cost between US $1,300 and US $1,600, depending on the bank and whether notarial ratification is required.

Mariana Plowes – Attorney in Cabo - mph@bajalegalgroup.com