What is a Trust?

What is a trust?

It is a three-party fiduciary relationship governed by a contract, by means of which one party, denominated a Constituent or a Trustor, through an act of trust, delivers or transfers one or more specific assets to a Fiduciary entity, in order to fulfill a purpose for the benefit of the constituent or a third party to whom it expressly determines.

The fiduciary entity undertakes to make its best effort to achieve the objective indicated by its client, managing the goods received for that purpose. It is a contract of means and not of results. It is a hybrid between traditional banking and investment banking.

For additional information on trusts, click here to consult our blog entry on this topic.