Trusts Portfolio



A fiduciary relationship in which one of the parties, known as Trustor, gives the other party, the Trustee, the right to hold the title over a property or assets for the benefit of a third person, the Beneficiary. This is an alternative generally used by the persons who have substantial assets, which include assets whose value is variable, such as shares, mutual fund or in companies, works of art and other assets.

It may be established by contract or will, and it may only be done on certain assets. Thus, the Trustor may impose the no division of the trust assets during a period after its passing.

The testamentary trust will exist when a person (Trustor) transfer the trust property of certain assets to another (Trustee), who is obliged to exercise it for the benefit of who is designated in the will (Beneficiary) and to transmit the fulfillment of a term or condition to the beneficiary or trustee.

In general, the option of the testamentary trust is recommended for those who have investments such as shares, participations in companies and cash deposits, which make the amount of assets to fluctuate and their heirs are not in a position to assume the administrative responsibility and leadership required to preserve and increase the invested patrimony.

The insured enters into a trust agreement with the trust entity of its reliance, designating it Trustee of the amount to be received by the insurance company, setting its term and specifying all of the conditions to which they must adjust to, in compliance with the instructed purposes (investments to be made, beneficiaries of the incomes final destination of the assets, etc.)

That under which the Trustor transfers the ownership of assets and/or rights to a Trustor in order to keep, custody and management, so that it administers them pursuant to what is established by the Trustor, being in favor of the Trustee the product derived from the fulfillment of the purposes of the contract, the own Trustor being able to reserve for itself the right of reversion of the assets subject to the trust.

It can be used to Manage Movable and Immovable Assets of clients whose purpose is to protect them.

It can be used for administration of the Trust payments to suppliers, rents and other services.



The trust property that is transferred has as its specific purpose or main investment of financial resources, according to the instructions, guidelines or regulations established by it or the Trustors for their own benefit or for the benefit of third parties (beneficiaries or trust beneficiary) to apply it to specific purposes.

The Trustor wants to make sure that a sum of money it wants to give to a loved one is sufficient once it has passed away. The Trustor wants to make sure that the money to cover education expenses of its child's is enough.

The Trustor wants to protect their loved ones from being affected by high living costs in the future.

The Trustor wants to be sure that there will be enough money for its own support in the future.

USEFULNESS: In the case that an unforeseen event occurs to the Trustor, the Investment Trust may guarantee that the continuous cash flow for the support of the Trustor and its loved ones.

The investment income can be used for the maintenance of the Trustor, therefore it mitigates any substantial reduction of the trust funds due to the increase of the costs, unexpected living expenses of the Trustor’s loved ones, etc.

As a tool to pass the fortune of the Trustor; therefore, its loved ones will remain protected and well taking care of.

This contract does not involve a transfer of ownership of the assets to an autonomous patrimony, but simply a request in order for them to be managed for a specific purpose.

It is on a temporary basis and on its behalf, to fulfill various purposes, such as management, investment, possession or custody, disposal, dispose of, in favor of the own constituent himself or of a third party called beneficiary.

Characteristics: No transfer of ownership of assets or rights is made, the constituent keeping the property, it only allocates it for the fulfillment of specified purposes in the contract.

Whether it is a mandate, it is of an irrevocable nature. No autonomous and independent patrimony having legal personality is constituted.

If the allocation of the assets for the execution of the mandate occurs, the Trust must maintain separated the ordered assets from their own and from other orders.

This tool fits perfectly into a real estate undertaking with third-parties funds.

Investors are the trustees, who are obliged to provide the totality of the required funds to buy the land and to cope with all of the costs that the work requires.

The trustee is the person receiving the control of the funds to purchase the immovable assets, registered it under its name in a temporary and conditional way.

The Trustee receives from the Trustor an immovable asset in order to administer it or develop a construction project and sale of the units built.

Example: the construction of a building with units to be distributed among those successful bidders under the horizontal property regime. Converge in the diverse interests business, as entities that provide credit, builders and architects to perform the work, engineers and estimators, municipal entities to be granted permits and authorizations that apply, entities environmental control, or the owners of the land where the construction will take place, etc.

The presence of all these interested parties, manages to reconcile with an advantage when a specialized financial institution holds the ownership of the immovable asset as trust property and provides full assurance that the business will be developed with respect for all the interests involved and as agreed.

Asset management intended to serve as collateral to secure obligations in favor of third parties. It is usually related to public issuances of securities of the stock market (bonds and others), where the holders of the securities benefit from specific guarantees offered by the issuer.

Its purpose is the provision of assets and/or rights by the Trustor to the patrimony of the Trust, in order to secure a previous or future benefit at its expense or at third parties expense as it may determine in favor of the Trustee, consequently such Trusts have an irrevocable basis.


  • It requires the existence of a main obligation.
  • The Trustor (debtor) transfers assets to secure the fulfillment of obligations.
  • The control transferred to the Trustee is imperfect, since it does not comply with the three own basis of the in “rem” rights (absolute, exclusive and perpetual).
  • The use of the asset by the Trustor (debtor) is not excluded.
  • It is an autonomous figure.
  • It is a kind of self-liquidating guarantee with superior advantages to traditional guarantees.

The purpose of a financial trust is to issue or guarantee with assets held in trust, debt securities or certificates of participation in the fiduciary control of the assets.

It allows taking various types of credit rights as an underlying asset in order to enable titling (securitization) issuing on the basis of such underlying assets, debt securities and/or participation certificates that are purchased by investors.

It is a legal act by which governments (Trustors) through their central or state agencies, transfer the ownership of certain assets of public dominion, which are transferred to a Trust for a specific lawful purpose of public interest.