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Wealth Management and Estate Planning in Mexico (Part I)

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By: Sophia Lozano Chernitsky

Both the Wealth Management and Estate Planning market and industry have grown significantly in Mexico over the recent years due to the growth of high-net-worth individual’s wealth (HNWI), which is accompanied by the need to manage their wealth and plan how it will be distributed among family members in the future.

Wealth Management

Wealth management consists of maintaining or growing a person or legal entity’s assets by analyzing, studying and optimizing them. This practice assesses an individual or family’s wealth to create personalized investment and asset preservation strategies, which enables any decision making regarding their wealth achieve the individual’s financial goals.

The main purpose of wealth management is to maximize wealth, ensure financial security and preserve assets, which is achieved through investment, insurance and liquidity management, as well as estate and retirement planning.

Estate Planning

Estate planning is a discipline that ensures people that, upon their passing, their estate will be distributed according to their wishes and, at the same, minimizes tax complications and legal complications between heirs.

Although estate planning foresees situations that arise upon the death of the individual, it also allows them to plan and set forth specific instructions regarding their personal care and care for their estate in the event of their disappearance, illness or legal incapacity, which provides greater security regarding the management and preservation of their estate, while ensuring its existence upon their death and that it will be passed on in accordance with their wishes.

Even though wealth management and estate planning are independent practices, their combined application offers several benefits to clients who are seeking to maximize their wealth and create tax efficient strategies that are in line with each of their objectives, as well as facilitating the transfer of their wealth and assets to future generations.

Gradually we have seen how wealth management and estate planning are becoming more and more important in Mexico, which has led to an increasing collaboration between legal and tax advisors in order to create strategies that benefit clients, with the sole purpose of ensuring that their wealth grows and is passed on as smooth as possible.

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Müggenburg, Gorches and Peñalosa's restructuring practice includes representation of corporate debtors, hedge funds, in various industries, etc., in restructuring proceedings and bankruptcy equivalents (insolvency proceedings).

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