While the typical US estate planning attorney focuses on creating a plan that minimizes tax liability, MEG International Counsel speaks your culture. We know that as a Mexican foreign investor, your family’s safety and privacy are even more important than the tax implications of a particular estate planning strategy.
Security Can’t Be Taken for Granted
Although those who were born and raised in the US often take the security of their personal information for granted, Mexican foreign investors know that not every country has the infrastructure necessary to safeguard people’s private information. When you’re searching for ways to grow your assets without exposing your family to the risk of identity theft, kidnapping, or extortion, you need an estate planning attorney who can create a comprehensive strategy personalized to fit your unique needs.
MEG International Counsel helps clients create a plan for investments that avoids the sharing of information between Mexico’s tax authority (Servicio de Administración Tributaria or SAT) and the IRS as the result of automatic and permanent Foreign Account Tax Compliance Act (FATCA) regulations. We advise against using certain popular foreign entities, such as personal investment companies (PIC) or foreign trusts, as investment vehicles because they can subject you to problematic FATCA reporting requirements. Instead, one strategy we often recommend to clients is a Canadian Limited Partnership.
For clients who wish to invest in stocks, using the name of the Canadian limited partnership as the account holder allows them to purchase stocks using the offshore platform instead of going through the US stock exchange. Then you can use the “check the box” election to have the Canadian limited partnership treated as a corporation in the US, which would not be subject to reporting to Mexican tax authorities under FATCA.
Of course, the formation of the Canadian limited partnership is just one small piece of the puzzle. You can get your strategy on steroids by adding a U.S. foreign trust as opposed to a U.S. trust or foreign trust alone.
We’re Here to Help
MEG International Counsel offers estate planning services designed to fit the needs of Mexican and Latin American investors. Request our book, The Definitive Blue Book of Estate Planning for Foreign Millionaires, to familiarize yourself with key estate planning concepts, or read Is It a Matter of FATCA or CRS? What Every Investor with Foreign Accounts Needs to Know to better understand the risks posed by FATCA reporting requirements. Once you understand the basics, we encourage you to contact us to request a consultation.