What Your Heirs Need to Do Within 90 Days of Inheriting Your Cabo Property: The Complete Playbook

Your parent or spouse just died, and buried in the estate paperwork is a condo or villa in Los Cabos. Your US probate attorney has never dealt with Mexican property. The bank that holds the fideicomiso is sending letters in Spanish. The property manager needs to know who is paying next month's HOA. And the clock is ticking — because inheriting Mexico property as a US or Canadian heir involves specific deadlines, and missing them costs real money. Here is exactly what to do, in what order, starting today.

The First 72 Hours: Immediate Actions

Before you deal with any legal process, handle the urgent practical matters:

• Contact the property manager — inform them of the death and confirm they will continue maintaining the property. Authorize continued payment from whatever account funded it previously, or set up a temporary payment arrangement. An unattended Cabo property deteriorates fast in the desert climate
• Secure the property — if there is no property manager, ask a friend, neighbor, or the HOA to check on the unit. Confirm doors and windows are locked, water is off if the property will be vacant, and the alarm (if applicable) is armed
• Locate the fideicomiso documents — you need the bank name, trust number, and property registration. These are typically in the original closing folder. If you cannot find them, the notario who handled the purchase may have copies
• Determine if a Mexican will exists — check with the deceased's US/Canadian estate attorney and ask specifically about a Mexican will (testamento). Many Cabo property owners have a separate Mexican will for their Mexican assets. If one exists, the succession process is dramatically faster
• Do not stop paying bills — continue HOA fees, predial tax, fideicomiso annual fee, utilities, and insurance. Lapsed payments create liens and complications that slow the transfer process

Understanding the Dual-Track Legal Process

Track 1: US or Canadian Probate

If the deceased was a US or Canadian citizen, their estate will go through probate in their home jurisdiction. The Mexican property is part of the worldwide estate for US estate tax purposes (estates over $13.61 million in 2026 are taxed, per the IRS). Even if the estate is below the exemption, you need the probate court to issue letters testamentary or letters of administration — these documents authorize you to act on behalf of the estate, and you will need them (apostilled) for the Mexican proceeding.

Track 2: Mexican Succession Proceeding (Juicio Sucesorio)

Separately and in parallel, you must open a succession proceeding in Mexico. This is not optional — US probate alone does not transfer Mexican real property. The Mexican Civil Code governs the disposition of property located in Mexico, regardless of the owner's nationality.

There are two types of Mexican succession proceedings:

Testamentary (testamentario): Used when the deceased left a valid Mexican will. The will names an executor (albacea) who manages the process. Timeline: typically 6–12 months. Cost: $8,000–$15,000 in legal and notarial fees.

Intestate (intestamentario): Used when there is no Mexican will. Mexican intestacy law determines who inherits (typically the spouse and/or children). Timeline: 12–24 months. Cost: $15,000–$30,000 — significantly more because the court must determine heirs, and every step requires additional hearings and documentation.

This is why every estate planning guide screams about having a Mexican will. The cost difference between dying with and without one is easily $10,000–$20,000 in legal fees and 6–12 months of additional timeline.

The Fideicomiso Transfer: What the Bank Requires

The fideicomiso does not automatically transfer to heirs. The trustee bank (typically BBVA, Scotiabank, Santander, or Monex in Los Cabos) must approve a new beneficiary. Here is what they require:

• Death certificate — apostilled and translated to Spanish by an authorized translator
• Mexican succession court order (sentencia) — the final ruling from the juicio sucesorio naming the heir
• Heir's identification — valid passport, proof of address, and (in some cases) an RFC number from Mexico's SAT
• Original fideicomiso trust agreement
• Proof that all trust fees, property taxes, and HOA dues are current
• Application and fee — banks charge $2,000–$4,000 for the beneficiary change, plus the annual trust fee for the coming year

The bank review process itself takes 30–90 days after all documents are submitted. Some banks are faster than others — in my experience, Monex and Scotiabank tend to process faster than BBVA for beneficiary changes.

The 90-Day Checklist

Here is what needs to happen in the first 90 days to keep the process on track:

Days 1–30

• Secure the property and continue bill payments (see above)
• Locate all Mexican property documents: fideicomiso agreement, escritura, predial receipts, HOA statements
• Retain a Mexican attorney specializing in foreign succession matters (not just any Mexican lawyer — you need one experienced with fideicomiso trusts and foreign heirs). Budget $3,000–$5,000 as an initial retainer
• Obtain multiple certified copies of the death certificate from the US/Canadian vital records office (you will need 3–5 originals for various filings)
• Begin the apostille process for the death certificate (through the Secretary of State in the relevant US state). Processing time: 2–6 weeks depending on the state

Days 30–60

• File the juicio sucesorio in Mexico through your Mexican attorney
• Submit apostilled and translated death certificate to the Mexican court
• Provide the Mexican attorney with letters testamentary or letters of administration from US/Canadian probate (also apostilled and translated)
• Notify the fideicomiso trustee bank of the death in writing — request their specific requirements for the beneficiary change
• File and pay the current year's predial tax if not yet paid — this prevents a lien from accruing during probate

Days 60–90

• Confirm the juicio sucesorio is progressing — your Mexican attorney should provide a status update on court dates and document review
• Gather all bank requirements for the fideicomiso transfer (see list above)
• Decide whether to keep or sell the property — this decision affects how you structure the transfer and the tax implications
• If selling: begin the listing and sales process in parallel with the succession. You can market the property while the legal transfer is pending, but you cannot close a sale until the fideicomiso is in the heir's name
• Consult a US cross-border tax advisor about estate tax implications, stepped-up basis, and any required IRS filings (Form 3520 for foreign trust reporting, if applicable)

Tax Implications: What You Owe, Where, and When

US Estate Tax

Mexican property is included in the US gross estate. For 2026, estates under $13.61 million (individual) or $27.22 million (married couple with portability) are exempt from federal estate tax. Most Cabo property owners fall below these thresholds, but the property must still be reported on the estate tax return (Form 706) if filing is required. The Mexican property is valued at fair market value on the date of death.

Mexico ISABI (Acquisition Tax)

When the property formally transfers to the heir's name, Mexico charges an acquisition tax called ISABI (Impuesto Sobre Adquisición de Bienes Inmuebles). In Baja California Sur, the rate is 2–4.5% of the property's catastral value or assessed value (not necessarily the market value). On a property with a catastral value of $300,000, expect $6,000–$13,500 in ISABI. This is paid at the time the escritura is re-registered in the heir's name.

Capital Gains Considerations

Good news for US heirs: the stepped-up basis rule (IRC §1014) applies. The heir's tax basis in the Mexican property is the fair market value at the date of death, not the original purchase price. If the deceased bought the property for $300,000 and it was worth $500,000 at death, the heir's basis is $500,000. If the heir then sells for $520,000, the taxable gain is only $20,000 — not $220,000.

However, Mexico has its own capital gains tax rules. Mexico does not recognize the US stepped-up basis. If the heir sells, Mexico will calculate capital gains based on the original purchase price (adjusted for inflation using the INPC index). This can create a significant tax liability in Mexico, even when the US gain is minimal. The US-Mexico tax treaty provides a foreign tax credit mechanism to prevent double taxation, but the calculations are complex. A cross-border CPA is not optional — they are essential.

The Five Costliest Mistakes Heirs Make

1. Not hiring a Mexican attorney within 30 days — delays compound. Every month you wait to file the juicio sucesorio is a month added to the back end of the process. At 6+ months, the court may require additional hearings
2. Letting the fideicomiso lapse — the annual trust fee (typically $500–$800) must be paid even during probate. If the trust lapses, reinstating it costs $2,000–$5,000 and delays the transfer by months
3. Not paying predial during probate — unpaid property taxes create a lien that must be cleared before the property can transfer. In Los Cabos, predial is approximately $300–$1,500/year depending on the property. A $1,000 tax bill becomes a $5,000 problem when it delays a $500,000 transfer
4. Assuming US probate is sufficient — it is not. US probate handles the American estate. Mexican property requires a separate Mexican proceeding. These run in parallel but are independent. One does not satisfy the other
5. Selling without completing the transfer — you cannot legally sell a Mexican property until the fideicomiso is in the heir's name. Attempting to sell "as the estate" creates title issues that can collapse the deal at closing

Prevention: What Property Owners Should Do Now

If you own property in Los Cabos and want to spare your heirs the harder version of this process:

• Get a Mexican will — cost: $1,500–$3,000 through a Mexican notario. It should specifically cover your Mexican property and name an albacea (executor) who can act in Mexico. This single document saves your heirs $10,000–$20,000 and 6–12 months
• Add a substitute beneficiary to your fideicomiso — some banks allow you to name a successor beneficiary who automatically receives the trust upon your death, bypassing much of the succession process. Cost: $500–$1,000 to amend the trust
• Keep all Mexican documents organized and accessible — fideicomiso agreement, escritura, predial receipts, bank statements, property manager contact. Your heirs should know exactly where to find these
• Maintain a cross-border estate plan that coordinates your US and Mexican wills — they should not contradict each other regarding the Mexican property