Frequently Asked Questions
What is a trust?
A trust is an instrument through which a person, whether physical or legal, transmits assets and rights to the fiduciary, and the trustee is obliged to use them for the realization of lawful and pre-established purposes in the contract signed by the parties.
What is a trustee, trustor, and beneficiary?
Trustee: This is the person who holds ownership of the assets and rights during the term agreed upon in the trust agreement.
Trustor: This is the owner of the assets or rights being transferred. They designate the trustee, beneficiary(ies), and final recipient(s) of said assets and rights.
Trustee: This person will receive the profits from the trust while the trust term is in effect.
What can a trustee do with the assets he receives?
The trustee may only perform the acts to which he has been expressly authorized in the agreement. The trustee will not have any freedom to vary the terms of said contract or to act in any way without the express written authorization.
What advantages does the trust have as a guarantee mechanism?
The first advantage is the cost of it. This is due to the fact that granting a mortgage guarantee requires its constitution and subsequently its cancellation, which generates considerable legal expenses. The guarantee trust does not pay transfer taxes or registration fees, so its only cost will be the constitution of the trust. Another advantage is that it can be varied when there is common agreement between the parties
What kind of assets can be granted in trust?
Any type of tangible and intangible property can be granted in trust, which includes real estate, furniture, rights of any kind, investments and money among others. The only condition is that these assets come from legitimate activities.
The term of the trusts is established by the agreement, however, according to the Costa Rican Commercial Code it may not be for more than 30 years.
What is the term of the trusts?
There are guarantee, testamentary, and administrative trusts.
What types of trusts exist?
In the escrow agreement, the parties agree to use the services of a third party as a depositor of goods. This will transfer or give access to them depending on whether a series of conditions or events are met.