Concept in Definition ABC

Contract by which material goods are transferred to another person and subject to certain conditions

At the request of Right, is known as Trust or Trust, to that testamentary disposition through which the entrusts an inheritance to an individual to manage it according to the provisions that together with it They indicated.

The Trust manifests itself through a contract or agreement and it will be thanks to him that the settlor will be able transfer assets, cash values, rights of today and tomorrow and that happen to be your property, to another individual, referred to in this relationship as trustee, who will then be the Manager manage or to invest the assets in question, either for their own benefit or that of a third party, known as trustee, once a stipulated term has expired or the fulfillment of a certain condition opportunely.

Items participating in the trust

From the aforementioned, then, it follows that the Trust is a contract that consists of four elements:

the trustor (who decides to transfer the goods to another party, of which, by the way, he must have over them the authority full); trust (the one who receives the aforementioned goods and whose main and first obligation administer them with prudence and diligence, that is, even if they are not his own property, he administers them as if they were, acting then in accordance with the confidence that has been deposited in it. The Trustee can be embodied by both a natural person and a legal entity); beneficiary (It is that individual in favor of whom the trust has been opened without being the final recipient of the goods in question. The beneficiary can be both one or more natural and legal persons); and the trustee (It is the final recipient of the goods, regularly the beneficiary and the trustee are the same person, Although it may also be that they are not the same person, it may be embodied by a third party or by a settlor).

Terms and objectives of the trust

A trust can be established through a contract or a will. Meanwhile, the term or the condition stipulated to the fiduciary domain may not exceed 30 years, except that the beneficiary of the trust was an incapable person, that is, one who suffers from some disability and in this case then the trust may last until the death of this person or until his disability ceases.

The main mission of the trust is the allocation of certain economic benefits that come from assets that are disposed of and according to the decision of the owner of the same, and with a vision and effect towards the future, that is, the trust allows those benefits and assets to be available to someone.

An important issue to point out regarding this contract and that directly affects your choice when, especially, what you want is to protect the goods. of someone is that those assets that are the object of trust will not be affected by any persecution or lawsuit that may be initiated by a creditor of the settlor or the trust. Not even bankruptcy can work against you.

Origin of the concept

The origin of the concept is found in the trust (a type of contract of the roman law), a legal figure that was created at the request of succession law and that was based on trust between the intervening parties. Thus, an individual entrusted the trustee with an estate for another person to receive.
In as much and as it has happened with other concepts, it underwent an enrichment and assumed different modalities. For example, the trust plays a very significant role in almost all systems of Anglo-Saxon law.

Financial trust

On the other hand, in the field of finance we can find the financial trust, which is a special kind of trust in which the fiduciary turns out to be a company or a financial entity that is authorized to act in that plane by the National Securities Commission that corresponds. Meanwhile, the beneficiaries will be those holders of certificates of participation in the trust or some debt representative title that is guaranteed with the transferred assets.

Territories without government and that the UN assigns to some state for the tutele

On the other hand, It is also designated with the term of trust, the situation experienced by those territories without their own government that the United Nations Organization places under the tutelage and administration of a state.

Trust Issues