For a foreign owner, what happens to Mexican real estate at death is decided largely by how the property was held — and by whether any planning was done while it could still be done calmly.
Succession is a structure question before it is a family one.
Property Held in a Fideicomiso
A fideicomiso allows the beneficiary to name substitute beneficiaries who succeed to the rights on death. Properly designated, this lets the property pass to the chosen heirs without a Mexican probate proceeding — privately, and without the cost and delay of court administration.
Property Held in a Corporation, or Directly
Where property is held through a Mexican corporation, it is the shares that pass, according to the succession of the shareholder. Where it is held directly, outside the restricted zone, ordinary succession applies. In both cases, the absence of a plan tends to mean a Mexican probate — a juicio sucesorio — with its attendant time and expense.
The Practical Safeguards
For most foreign owners, the safeguards are a correctly drafted beneficiary designation in the trust, a Mexican will covering Mexican assets, and coordination with the estate plan in the home country so the two do not contradict each other.
Planned in advance, succession is an instruction. Left to chance, it becomes a proceeding.