Strategic Wealth Management through Trusts
What is a trust?A trust is a contract by which a person called the settlor transfers assets to a trustee (ACTION TRUST, S.A.), to hold and manage them for the good of a beneficiary, who may be the settlor himself.Trust companies are supervised by the Superintendency of Banks, which ensures that customers are served under the highest professional standards.Why should I create a trust?A trust is very versatile instrument because it can undertake any lawful activity, so it is limited only by the imagination of its parties.What assets can I place into a trust?Any type of assets, present or future, can be settled into a trust. The applicable law allows for assets to be transferred by the settlor or by third parties once the trust has been created, with the consent of the trustee.
Are there any formalities involved in the creation of a trust?
The settlor’s intention to create a trust must be expressed in writing through a trust deed drawn in accordance to the applicable legal requirements. Trusts that will hold real estate must be created through a public deed that must be registered in the Public Registry in order to properly transfer ownership to a trustee.
Why should I transfer my property into a trust?
Because the trust is a separate estate, which insulates assets from any legal claims against the settlor or the beneficiaries.
Why should I keep my assets in a trust instead of a corporation or a foundation?
Because beneficiary rights can be transferred by their holders through an assignment, achieving a level of tax efficiency not available to corporations or foundations. Moreover, annual maintenance costs for trusts are lower than those for corporations and foundations, the level of confidentiality is considerably higher, and trusts are managed by professional companies monitored and regulated by the Superintendency of Banks of Panama.
Can the trustee take care of my property while I am abroad?
A settlor can empower the trustee to manage the property in areas such as payment of utility bills, mortgages, taxes, maintenance services, mail management, etc. The trustee can also be in charge of leases, including signing contracts, collecting rent and managing the revenue according to the instructions of the settlor.
What if I need to mortgage my property?
The settlor can instruct the trustee to mortgage the assets held in trust to third parties as collateral guarantee for financing or other types of transactions. The trustee can also issue certificates of guarantee to various creditors, whether under a specific priority or on equal terms.
How can a trust secure the future of my loved ones?
A settlor can implement family governance regulations, which can remain in effect after his death without being subject to national or foreign inheritance laws. Sources of family wealth are safeguarded from potential liabilities while the trustee monitors their performance, and heirs are protected from their own potential inability to handle money by having the trustee execute the settlor’s specific instructions regarding the circumstances in which assets or their benefits are distributed.
How do I set up my trust?
By contacting Action Trust at +5073944555 or writing to us at info@actiontrust.com.pa to schedule an appointment in which we can design a solution tailored to your specific needs.
