Inheritance and Wills in Mexico: What You Need to Know

In Mexico, fewer than 15% of people have a will. The result is that the vast majority of estates are settled through intestate succession proceedings that can last years and consume a significant portion of the estate in fees and costs.

Will vs. Intestate Succession

When a person dies without a will, the law establishes an order of heirs: first the spouse and children, then parents, then siblings, and so forth. The process of distributing an estate without a will is called an intestate succession proceeding and requires a judicial process that in SLP can take between 18 months and 4 years, depending on the complexity of the estate and the agreements among heirs.

Types of Wills in Mexico

The most common are:

Open public will (testamento público abierto): executed before a notary public; the safest and most recommended
Holographic will (testamento ológrafo): written entirely by hand by the testator, without a notary. Carries greater risk of challenge
Closed public will (testamento público cerrado): the content is secret; the notary only certifies its existence

What Happens to Digital Assets and Bank Accounts?

A frequently overlooked aspect: bank accounts, investment portfolios, digital assets, and accounts on technology platforms require specific instructions in the will or beneficiary designations with the financial institution. Without these instructions, heirs may face an additional process just to access those assets.

Inheritance Tax

Mexico has no federal inheritance tax. However, if heirs decide to sell an inherited property, income tax is due on the gain. Fiscal planning prior to death can significantly reduce this burden for heirs.

How we work: before and after

Situation based on real cases handled by the firm. Data modified to protect client confidentiality.

Before

Family with Significant Estate and No Will — 3 Years of Litigation

When the patriarch of a family in SLP passed away, his four children could not agree on the distribution of the estate (three properties, two businesses, and bank accounts). Without a will, the succession proceeding lasted 3 years and generated fees and costs exceeding $800,000.

After

Succession Mediation and Agreed Distribution in 4 Months

We served as advisors to two of the four heirs and proposed a private mediation process. We appraised the assets with the support of expert appraisers, designed three equitable distribution scenarios, and presented them in a joint session. All four heirs agreed on the distribution in four mediation sessions. The proceeding was converted to a voluntary jurisdiction procedure and concluded in four months.