What is a Trust?

What is a trust?

It is the contract by means of which, in an act of trust, a natural or juridical person called a Constituent or a Trustor delivers or transfers one or more specific assets to a Fiduciary entity, with the goal of complying with a certain objective for the benefit of the constituent or of a third party expressly specified by the constituent.

The fiduciary entity binds itself to make its best effort to fulfill the objective specified by its client, administering the assets received for that purpose. It is a contract of means and not of results. It constitutes a hybrid between traditional banking and investment banking.