Panama Trust Formation and Benefits of Trusts.
Trusts are a legal act by virtue of which a person called trustor transmits goods, amounts of money or personal property rights to another person called fiduciary. Under this contract, the fiduciary must administer or invest said assets for the benefit of the beneficiary, which may be the same trustor.
The assets will be protected against any legal event, and there are no limitations on the assets that may be included, provided they are of lawful origin.
Trusts are a very important tool in asset protection planning with which the client can preserve their assets, movable and immovable property, with security and discretion. Through the trusts the assets cannot be seized.
- THE TRUSTOR: is the owner of the assets or rights that will be transferred to the trust for the fulfillment of an object or purpose.
- THE FIDUCIARY: is the one that receives the property in trust and is obliged to give the assts the destiny foreseen in the contract, in which a term or the fulfillment of a condition can be established.
- THE BENEFICIARY: is the person who benefits from the assets left in trust.
For a Panama trust formation, it is necessary that you provide the following documents:
- The complete and clear designation of the trustor, the trustee and the beneficiary. In case of future beneficiaries, it is necessary to indicate enough elements for their future identification.
- Clear designation of the substitute trustees and beneficiaries, if known.
- The description of the assets or of the patrimony or quota of the same on which to create a trust.
- The expressed declaration of constituting the trusteeship.
- The obligations and powers of the trustee.
- The prohibitions and limitations that are imposed on the trustee in the management of the trust.
- Place and date of trust creation.
- The appointment of a Resident Agent in the Republic of Panama.
- Domicile of the trustee in the Republic of Panama.
- Expressed declaration that states that the trust is create according to the laws of the Republic of Panama.