Fideicomiso Mexican Trust by Eduardo Beauregard
History tells us that this legal entity started being used to prevent foreigners from getting control over Mexican territories in big portions of land with the purpose of preventing them from controlling the maritime trade and control over the borders.
The trust has its roots in the Mexican constitution and foreign investment law. It is stablished that a foreigner will not be able to purchase property in the restricted zone the same way a national citizen would. The restricted zone begins 100 km from the borders and 50 km from the coastlines. Therefore, the property acquired by a foreigner in this strip will have to be held by a trust.
The trust is a legal entity with its own personality and assets, therefore, all the properties and assets transmitted to it will stop being property of the person who provides them and, from that point forward, will be trust property (this trust has a beneficiary who will use these assets and properties in their best interest)
The trust has 3 parties: settlor (the person who provides the properties or assets to the trust), the trustee bank (the bank institution that will hold the trust, this person can be the same as the settlor) and the beneficiary (the final end of the trust, this person will have all the rights and benefits towards the properties or assets in the trust).