The property handed over in trust is deemed to be assigned to the object for which it is intended and, consequently, only the rights and actions relating to the aforementioned object may be exercised, with the exception of those expressly reserved by the trustee, those deriving for him from the trust itself or those legally acquired in connection with such property. before the trust is established by the trustee or by third parties. The fiduciary institution shall recognise those assets or rights and separate them from its freely available assets. The trust formed for the benefit of the trustee is null and void, except in the cases provided for in the following paragraph and in other applicable laws. There are different types of trusts, depending on their purpose or the way they are composed, among other characteristics. A trust is combined into a trust commission because an asset is entirely entrusted to another person to manage it. Article 381 In the context of trusts, the grantor transfers ownership of one or more assets or rights intended to be used for lawful and specific purposes to a trust entity, entrusting the achievement of those objectives to the trust institution itself. By written agreement between the trustee, the trustee and the trustee; In practice, the most common reasons for establishing a trust are: Article 393. Once the trust is extinguished, the assets or rights of the fiduciary institution may be transferred to the settlor or trustee, unless otherwise agreed.
In case of doubt or opposition to such a transfer, the competent judge of first instance at the domicile of the fiduciary institution, the parties heard, decides on the advisability. The trust institution has all the rights and actions necessary for the execution of the trust, with the exception of the rules or restrictions established for that purpose when it was constituted, so that it is required to comply with the trust in accordance with the instrument of incorporation. The trust may be established for any purpose that does not violate law, morality or public order, i.e. the trust can only be established for lawful purposes. PURPOSE OF THE TRUST: The one designated for the purpose, which must be lawful and intentional. Several fiduciary institutions may intervene in the trust to act jointly or successively as trustees and to determine the order and conditions of their replacement. The beneficiary`s creditors may exercise their rights to the fruits of the trust. A trust is a legal act by which one person transfers ownership of assets to another in order to manage them and pass the results on to third parties at the end of a term. It is a legal instrument widely used in business and to preserve the family patrimony. For the purposes of this Article, the fiduciary institution shall be deemed to have made reasonable efforts to comply with the notification procedure provided for in Article 1070 of the Commercial Code.
TRUSTOR: A natural or legal person who constitutes a trust to allocate certain assets or rights for the purpose of achieving a lawful and specific purpose and entrusts this achievement to a credit institution. All property of any kind: movable or immovable, tangible or intangible, present or future. Any type of goods that are in commerce, any right that is not exercised personally and that is inherently non-transferable. Of course, these goods or rights must be free from any promise of charge. PURPOSE OF A TRUST: All types of property and property rights of the settlor, with the exception of those which, according to the law, are strictly personal to their holder (article 386 of the General Law on Securities and Credit Transactions). Assets cannot enter the trustee`s estate if they are confused with his own, they are assets that can be separated from the asset, with separate accounts and are excluded from the guarantee of the creditors of the trustee and those of the grantor. Only institutions expressly authorized to do so under the General Law on Credit Institutions may act in trust. The trustee may be appointed by the settlor in the trust`s instrument of incorporation or in a subsequent deed. The main reason why a trust is created is to fulfill a specific purpose, one could say that the purpose of a trust is the object or reason for which it was created. That is, the object is the legal activity that the trustee carries out under the direction of the trustee through the mandatory exercise of the rights transferred by that trustee. Section 382 Trustees may be persons who have the capacity to obtain the benefit implied by the trust.
The trust is a very versatile character that offers the following advantages: the trust is exempt from the action of the trustee`s creditors, and the trustee`s creditors cannot sue the trust`s assets unless the fraud has occurred. The trustee is the “key person” of every trust. It is the trust that the constituent places in him that is the basis of trust. It is the responsibility for the honor and integrity of how the trustee manages the trust, not for his own benefit, but for the benefit of a third party: the trustee. That is, the trustee must fulfill his role with the responsibility of a good father. The trust agreement has the following characteristics: in the case referred to in the preceding paragraph, the fiduciary institution must inform the settlor and the trustee of its decision to terminate the trust for non-payment of the consideration due for its performance as trustee and set them a period of fifteen working days to cover the debt. if need be. If, after the above period, the consideration due is not covered, the fiduciary institution transfers the assets or rights contained in the trust to the settlor or trustee.
If, after reasonable efforts, the fiduciary institution cannot or does not hear from the settlor or trustee for the purposes of the foregoing, and provided that the specified period has elapsed without having received the corresponding consideration, it shall be entitled to pay the above assets in the case of cash and cash equivalents that maximize recovery, the institution`s global account within the meaning of Article 61 of the Banking Institutions Act; In that case, those funds shall be subject to the provisions applicable to that global account. In the case of assets that are not liquid, the fiduciary institution is entitled, without any liability, to dispose of them and convert them into cash for subsequent deposit in the global account under the conditions laid down. The costs associated with the realization can be deducted from the money received. Unless otherwise specified in the trust, another fiduciary institution must be appointed if it resigns or resigns from office. If this override is not possible, the trust relationship is terminated. Those in which the benefit is successively granted to several persons who must be replaced by the death of the previous ones, unless the replacement is in favour of living or already conceived persons, on the death of the settler; and As stated in Act No. 1 of 1984, a trust is enforceable when, in a contract, a person transfers ownership of certain property or securities to another person, when the latter exercises it for the benefit of the persons specified in the contract, until a condition or condition is met.
