Is the trust legal in Nicaragua?

 


Is the trust legal in Nicaragua?

Yes, it is legal. It is regulated under Law number 741 "Law on the Trust Agreement" and its Regulation Decree 69-2011 and related laws.

What is the Trust? It is the operation by virtue of which the settlor transfers ownership of a certain asset or set of assets or rights to the trustee, who undertakes to administer them in favor of the beneficiary and transmit them to the trustee or settlor when a term, condition is met. or other cause of extinction of the obligation.

Classes of Trust?

Law 741 mentions some types of Trusts:

- Trust in administration.

- Guarantee Trust.

- Life insurance trust.

- Investment trust.

- Pension and retirement trust.

- Real Estate Trust.

Trust Agreement Advantages?

This contract has a series of advantages that make it attractive when doing business. Undoubtedly, the main one is the constitution of fiduciary property over the trust assets, producing the separation of the trust assets from the personal assets of the settlors, beneficiaries and trustee.

The trust patrimony is subject to the fulfillment of the purposes of the operation, therefore, the obligations derived from acts or contracts carried out by the trustee for the fulfillment of these purposes, will be guaranteed only with the trust patrimony.

Advantages of using a trust when you have assets in several countries When the settlor owns businesses or family interests in several countries, you may want to safeguard them from political, economic or social instability. Thanks to the fact that the trust is a private agreement between the parties, these assets can be kept protected and the most important thing is that the trustee will be in charge of managing them and not allowing them to deteriorate.

Reduction of risks in terms of equity.

It minimizes the risk of the businesses because an equity different from that of the settlor, the trustee and that of the beneficiaries is constituted, isolating the assets transferred to the trust, in this way, as already indicated, the bankruptcy of either party does not mean bankruptcy. of the trust and their creditors have no action against it, this is because the assets contributed to the trust are protected until they fulfill the purpose for which it was created.

 

Prepared by Msc. Marlon José Blandon Argeña. 

Real Estate & Business Lawyer / Notary.

Cell: (505) 88653362

 

Ubicación: Granada Nicaragua Real Xalteva street, From the National Lottery building 70 meters East Granada Calle Real Xalteva, de la Lotería Nacional 70 metros Este, Granada, Nicaragua

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