Strategic estate planning for Mexican families with cross-border assets in the Trump era

Meanwhile, Mexican tax authorities are also considering new regimes, including potential inheritance and wealth taxes, under growing Organisation for Economic Cooperation and Development (OECD) influence. This dual front pressure calls for carefully coordinated planning, balancing legal frameworks, generational continuity, and evolving compliance risks.

Why cross-border families face heightened exposure

Mexican individuals with US situs assets remain liable for US estate tax, with a modest USD 60,000 exemption for non-residents and a top rate of 40%. Traditional planning tools like foreign entities, limited liability companies (LLCs), and trusts are increasingly scrutinised, particularly under administrations focused on closing enforcement gaps and boosting domestic revenue.

In contrast, Mexico’s proposals for a 10% inheritance levy are gaining traction, covering both local and international wealth. Combine this with civil law rules, heirship constraints, and limited recognition of foreign trusts, and the environment becomes markedly more complex.

Strategic recommendations

1. Dual wills with harmonised execution. A bifurcated testamentary approach remains vital. US and Mexican wills must be legally valid in their jurisdictions, precisely coordinated to avoid double probate or contradictory outcomes, and structured to respect Mexico’s heirship rules. Collaboration between international notaries and legal advisors is key.
2. Validated cross-border trust structures. Despite Mexican courts' general scepticism toward common law trusts, structures such as Vista Trusts domiciled in jurisdictions like the British Virgin Islands and Malta can be viable when backed by compliant LLCs or controlled foreign corporations (CFCs). Trust deeds must reflect Mexico’s reporting norms. 
3. Reassessing asset location and classification. Reviewing where key assets are held is essential. Direct ownership of US portfolios should be unwound where possible. Ownership should be transferred to appropriate non-US entities with treaty analysis. Structuring real estate via holding companies can help insulate assets from estate tax exposure.
4. Governance and succession modernisation. Effective estate planning now extends beyond documentation. Families should adopt formal governance mechanisms such as succession charters and structured transitions aligned with trust frameworks. Inclusion of protectors, fiduciary advisors, and educational paths for heirs is increasingly necessary.
5. Proactive risk and compliance management. A Trump-driven tax overhaul could reshape exemption levels, IRS reporting rules, and audit priorities. Combined with Mexican reforms and OECD standards, the planning landscape is fluid. Families should leverage compliance platforms and dashboards to monitor trustee actions, filing obligations, and wealth preservation strategies.

Conclusion

Cross-border estate planning in 2025 demands resilience and foresight. For Mexican families with US interests, staying ahead of evolving tax regimes, transparency mandates, and legal complexities is no longer optional. We as trust and estate practitioners and advisors are ideally positioned to guide this process, offering integrated solutions grounded in cross-border compliance and long-term stewardship.

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Prof Sergio Guerrero Rosas, Managing Director at Guerrero y Santana, has over 25 years’ experience advising companies from SMEs to multinationals, as well as individuals, on tax and estate planning. He is also Global Vice Chair of the GGI Trust & Estate Planning (TEP) Practice Group.