F.A.Q

The Trust is mainly regulated by the Costa Rican Commercial Code and by the contractual terms defined in each trust agreement. Likewise, with respect to money laundering, trustees who receive funds from third parties must comply with the regulations established in Law No. 7786 "Law on narcotics, psychotropic substances, drugs of unauthorized use, related activities, money laundering and financing of terrorism".

The trustee may not be a trustee. If such qualities coincide, the trustee may not receive the benefits of the trust as long as the coincidence subsists.

When a trust contract is constituted, one of the first tasks of the Trustee is to register each trust by name with the National Registry, in order to provide such entity with an identification number. Based on such identification, the Trustee proceeds to register the beneficiary of each trust contract, in accordance with the existing regulations in Costa Rica.

For those trust agreements that generate a lucrative activity, such as lending funds, securitizing future flows and receiving funds, among others, the trust entity must proceed to register the trust agreement with the Ministry of Finance and, in accordance with the income generated, pay the income originated under the trust.

No, the Costa Rican Commercial Code prohibits the trustee from guaranteeing the yields of the trust assets.

In the event that the trust generates a lucrative activity, the trustee must pay the taxes and fees corresponding to the trust assets.

The trust will be extinguished:

• By the realization of the purpose for which it was constituted, or by its impossibility.
• For the fulfillment of the resolutory condition to which it is subject.
• By express agreement between settlor and trustee. In this case, the trustee may oppose when the rights of third parties born during the management of the trust remain unsecured.
• By revocation made by the settlor, when such right has been reserved. In this case, the rights of third parties acquired during the management of the trust must be guaranteed; and
• For lack of trustee when substitution is impossible.

• Trusts for secret purposes.
• Trusts in which benefit is granted to several persons who successively must be substituted due to the death of the previous one, except in the case in which the substitution is made in favor of persons who, at the death of the settlor, are already alive or conceived.
• Trusts whose duration is greater than thirty years, when a legal person is designated as trustee, except if it is a state or a charitable, scientific, cultural or artistic institution, constituted for non-profit purposes.
• Trusts in which the trustee is assigned profits, commissions, prizes or other economic advantages in addition to the fees indicated in the constitutive act. If such fees have not been indicated, they shall be fixed by the judge, after hearing the opinion of experts, in summary proceedings specially instituted for such purpose and following the procedures established for acts of voluntary jurisdiction.

The following conditions must be met:

• Real estate (property) is transferred to a guaranty trust.
• The TRUSTEE is an entity registered with the Superintendencia General de Entidades Financieras (SUGEF).
• The TRUSTEE (Creditor) is constituted as a company or firm dedicated to providing financial services, duly registered with the SUGEF.