Financial Annuities in Mexico

Why not set one up in the USA, with regular transfers to a Mexican account? There are strict financial rules about annuities established by the FTC that provide security. I do not know if such rules are present in Mexico.

I am quite sure that an annuity would require identification of the person who would receive the flow from the annuity for tax purposes. I am quite sure that the person must have a legal financial presence in the country.

The annuity would be a whole life annuity. In my experience, the payout of a whole life annuity is considerably influenced by the actuarials based on age at the beginning of payments and the projected age at death. A financial institution outside of Mexico might be unwilling to take on that risk of a foreign life projection.

In this case, the recipient’s only legal financial presence would be in Mexico, so I don’t think they could be the recipient of a non-Mexican annuity. That would mean that I would have to be the recipient and be taxed at my much higher marginal tax rate, reducing the benefit to the person. Given that the person would be a former employee and the income would be recurring it might then be treated as earnings and be subject to taxation in Mexico as well.

I think for this to work it would have to be a Mexican annuity.