At this moment of pause in our operations we want to take the opportunity to communicate and share some history and basic knowledge of trusts, which will surely serve you in understanding the scope of our activity, thus contributing to the broadening of the concepts that you should use in decision-making related to the protection of your assets.
Preparation during this period of change is crucial to successfully facing the new challenges arising from the paralysis caused by COVID – 19.
In that sense, we have created a learning space, beginning by sharing an overview of the history of this concept:
The word Trust, in Spanish Fideicomiso, comes from the Latin term Fideicommissum, from the union of the words “Fide” which means trust or faith; and, “Commissum” which means commission, together this translates as “a trust commitment.”
Fide at that time was based on certain qualities, such as friendship, honesty, loyalty, impeccable conscience and high morality. The trust had its legal origin in the Classical Roman Law, through actions assimilated to those of good faith (although this activity was limited to real estate, slaves and animals of rite and burden); and also, in Germanic Law and Anglo-Saxon Law (Common Law).
In the case of Panama, it was in the year 1924 when the illustrious jurist Ricardo J. Alfaro, impressed by the versatility of the trust in Common Law, presented a draft Trust Law, which would later become Law 9 of January 6 from 1925; being the first legal instrument of its kind in Latin America, thus paving the way for other countries´ regulations.
Subsequently, Law 9 of 1925, is repealed by Law 17 of February 20, 1941, which governed for more than forty (40) years, until Law 1 of January 5, 1984 was enacted, which complements and modifies with Law 21 of May 10, 2017, which arises with the purpose of converting Panama, as an International Trust Center.
In the next installment, we will discuss the definition of the concept of Trust and its parts.
Reiterating our desire to accompany you during this process; and, convinced that behind a crisis, there is a world of opportunities for those who are prepared to identify them, we remain at your services,
FERNANDO SUCRE MÍGUEZ