By: Luis Gerardo Ramírez Villela
Success planning has become essential today. Together with proper estate management, it will protect your assets and, consequently, ensure the future of your family members.
The following is an analysis of the most relevant aspects for the appointment of an executor and the succession file in Mexico.
Executor
The executor is the person designated by the testator or the heirs to carry out the testamentary provisions or to represent the estate and exercise the corresponding actions of the author of the inheritance. The position of executor is voluntary and non-delegable, but whoever accepts it assumes the obligation to perform it.
Anyone can become an executor; the Federal Civil Code (Código Civil Federal) establishes that those who do not have free disposal of their assets cannot be executors. Likewise, the following cannot be executors: (i) magistrates and judges exercising jurisdiction in the place where the succession is opened, (ii) those who have been removed from the position of executor by a previous judgment, (iii) those convicted of property crimes, and (iv) those who do not live honestly.
The testator appoints one or more executors; however, in some cases, the heirs themselves may appoint an executor or the Judge.
The responsibilities of the executor, are as follows:
- Present the will.
- Secure the assets of the estate.
- Prepare inventories.
- Management of the assets and account for the office to the heirs.
- Pay the debts of the estate.
- Divide and allocate the assets among the heirs and legatees.
- Defend the inheritance and the validity of the will in and out of court.
- Represent the estate in all lawsuits brought on its behalf or against it.
In the case of debts owed by the estate, such as tax or monthly payments, or any debt in general, the executor is obligated to notify the heirs and first request payment. If they state they lack the income, the executor may sell certain assets to pay the debts, with the heirs' consent.
The executor holds office for one year but may extend his or her term for another year, with justified cause from the heirs.
Succession File
For the executor and family members to complete the necessary procedures in any probate proceeding, one of them must maintain the following information and documentation:
- Copy of official identification (passport and voter registration card).
- Original wills.
- Original insurance policies indicating the beneficiaries.
- Copy of any credit cards held by the person, indicating the account number and expiration date. If possible, a copy of a recent bank statement with the address.
- Copy of any checking or investment account contracts indicating the beneficiaries.
- Original invoices for any cars owned and copies of vehicle registration cards and recent property tax payments.
- Original deeds to real estate.
- List of assets (watches, jewelry, etc.) indicating the person who will retain them after death, including the corresponding invoices if possible.
- Original invoices/receipts for funeral services.
Additionally, these documents must be kept in an electronic file (PDF) so they can be used when carrying out the corresponding procedures for succession and for collecting insurance policies and canceling credit cards, among other matters.
Finally, it is important to emphasize the importance of maintaining and ensuring that the information on the file is up to date at all times or updating it as deemed necessary (at least annually) due to any changes in terms and conditions that could affect any process.
