Best Trusts Lawyers in Costa Rica

About Trusts Law in Costa Rica

Trusts, known as "fideicomisos" in Costa Rica, are legal arrangements that allow one party (the settlor or fideicomitente) to transfer assets to another party (the trustee or fiduciario) for the benefit of a third party (the beneficiary or beneficiario). Trusts play a significant role in estate planning, asset protection, and commercial transactions in Costa Rica. The country's legal framework for trusts is primarily established under the Costa Rican Code of Commerce, which recognizes and regulates various forms and purposes of trusts.

Why You May Need a Lawyer

There are several common scenarios where legal assistance with trusts is essential in Costa Rica:

• Establishing a trust for estate planning, inheritance, or asset protection
• Managing or administering a trust as a trustee or co-trustee
• Handling disputes among beneficiaries, trustees, or other involved parties
• Transferring real property or high-value assets into a trust
• Optimizing tax benefits or ensuring regulatory compliance related to the trust
• Terminating a trust or making alterations to trust agreements
• Understanding the rights and obligations of each party involved
• Protecting international or cross-border assets held in Costa Rica

Legal guidance ensures your trust complies with Costa Rican law and serves your intended goals. Lawyers can also provide expertise in drafting clear and enforceable trust documents and assist with any legal disputes that may arise.

Local Laws Overview

Trusts in Costa Rica are mainly governed by Articles 633 to 662 of the Costa Rican Code of Commerce. Here are some key points of the local legal framework:

• Trusts can hold any kind of asset, including money, real estate, company shares, or intellectual property
• The settlor can establish terms, conditions, and duration of the trust, subject to legal restrictions
• The trustee must act in good faith and fulfill fiduciary duties as outlined in the trust agreement and by law
• Costa Rican law allows both revocable and irrevocable trusts
• Trust agreements must be formalized in writing and, for real estate, registered with the National Registry
• Trusts can be used for public interest purposes (such as charitable trusts) or for private benefit
• There are mandatory reporting and registration requirements in certain cases, especially for anti-money laundering compliance

Foreign individuals and entities can also establish trusts in Costa Rica, making it a popular vehicle for international estate planning and business purposes.

Frequently Asked Questions

What is a trust (fideicomiso) in Costa Rica?

A trust in Costa Rica is a legal arrangement in which one party (the settlor) transfers assets to a trustee to manage them for the benefit of one or more beneficiaries under specific terms and conditions.

Who can act as a trustee in Costa Rica?

Trustees can be individuals or legal entities (such as banks or trust companies) that are authorized to act in this capacity and are capable of fulfilling fiduciary duties.

Do trusts need to be registered in Costa Rica?

If the trust owns real estate or other registrable property, the trust agreement must be registered with the National Registry. Some types of trusts also require registration for tax or compliance purposes.

Are trusts in Costa Rica revocable?

Trusts can be either revocable or irrevocable depending on how the trust agreement is drafted. The settlor determines this when setting up the trust.

What are common uses of trusts in Costa Rica?

Common uses include estate planning, succession, asset protection, holding investments, managing real estate, conducting business transactions, and philanthropic purposes.

Do I need to be a Costa Rican resident to set up a trust?

No. Foreigners, non-residents, and foreign companies can establish and benefit from trusts in Costa Rica.

Are there taxes on trusts in Costa Rica?

Trusts themselves are not taxed as entities, but income generated from trust assets may be subject to Costa Rican income tax. Beneficiaries may also have tax obligations depending on distributions received.

Can a trust help protect my assets from creditors?

Properly structured trusts can provide some degree of asset protection, but there are legal limits and exceptions, especially in cases of fraud or legal judgments.

How long does a trust last in Costa Rica?

Trusts can be set for a definite term or until a particular condition is met, as specified in the trust agreement. Some types of trusts must not violate legal restrictions on perpetuity.

Can a trust be challenged or contested?

Yes, trusts can be challenged in court under certain circumstances, such as allegations of fraud, undue influence, lack of capacity, or failure to comply with legal formalities.

Additional Resources

For those seeking more information or official guidance, consider consulting the following:

• Attorney General's Office (Procuraduría General de la República)
• Costa Rican Bar Association (Colegio de Abogados y Abogadas de Costa Rica)
• National Registry (Registro Nacional) for property and trust registrations
• Local banks and private fiduciary firms specializing in trust services
• Reputable legal firms with experience in estate planning and fiduciary law

Next Steps

If you are considering establishing a trust in Costa Rica or need assistance with an existing trust, contact a licensed local attorney who specializes in trust and estate law. Gather all relevant documents, including titles, asset information, and details about intended beneficiaries. During your consultation, clarify your goals and ask questions about the legal options available. Lawyers can help draft, register, administer, and defend trusts, ensuring your interests and those of your beneficiaries are properly protected under Costa Rican law.