Trust

Characteristics of the Trust

Characteristics of the Trust

It is an act of trust because it requires mutual or two-way knowledge, both by the client (constituent) about the fiduciary entity, as well as by the latter about the former.

The fiduciary corporation administers and complies in a professional manner with the requests presented to it by its clients, under the supervision of the Superintendency of Banks of Panama (“Superintendencia de Bancos de Panamá”) a fact that gives it a character of formality and security.

The beneficiary can be the trustor himself. It can be set up to come into effect after the death of the trustor, avoiding the regular probate hearing process and complying with the last wish of the trustor.

This structure is created by means of a private document, with the sole formality being that the signature of the founder and administrator has to be authenticated by a Panamanian notary, thus guaranteeing its confidentiality.

It guarantees expressly the confidentiality of its execution.

The trust must clearly express its duration.

There should be a licit (lawful) objective in the trust, and it should be clearly stated when the contract is signed.

Both, the founder and administrator and/or the beneficiary, can be either a natural or an juridical person.

The Trust guarantees its constituent anonymity, security and exempts it from paying taxes (when the goods subject to it are located outside of Panama).