Trusts

Guarantee Trusts: used to protect properties or vehicles that are used as guarantee in a credit. It is widely used by creditors of credits.

Advantages of the Mortgage Guarantee Trust

The property is unattachable while in the trust
Auction execution times up to 5 times less than those of a mortgage or pledge process
Security of the legal status of the property given in guarantee

Investment trusts: in this case, the administrator of the trust must comply with the provisions of the contract regarding the way to invest the money or assets placed in their care. An example is to give a million colones to be invested in mortgages.

Advantages

• Unattachable amounts or invested assets
• Probate clause that allows in the event of death to leave beneficiaries of the assets unspent
  in expensive estates
• Accurate investment progress accounting reports
• Income can be obtained monthly, annually or at the end of the investment according to the investor’s need

Administration Trusts: in this case the administrator of the trust
It carries out the procedures that the contract orders it to carry out on the assets under management, such as collecting a rent, supervising business management, taking money and depositing it with a beneficiary, maintaining property, among others. An example is the Administration of properties given for rent.

Advantages

• Unattachable amounts or assets.
• Administrator in charge of procedures on assets such as: municipal payments, rent collection, arrangements on assets, evictions.
• Tax procedures are carried out by the administrator.
• In the event of death, a testamentary clause that allows inheriting without the need for an expensive inheritance process.

Testamentary Trusts: it is used when people want to leave their assets in order for their children and other heirs in order to avoid greater expenses and conflicts in succession processes. In many cases it works when there is no security to transfer the assets to the heirs because they are not old enough or due to some other condition that they want to impose to obtain the inheritance.

Advantages

• Unattachable amounts or assets.
• Administrator in charge of procedures on assets such as: municipal payment, rent collection, property arrangements, evictions.
• Tax procedures are carried out by the administrator.
• Administrator can transfer the earnings of the trust in the way that is most convenient for the parties, either monthly, annually or at the end of the term of the trust.