TRUST LAW

Trust law is not just law

Trust law is not just law

Trust

The trust is a legal concept that allows you to isolate assets, cash flows, business, rights, etc. in a heritage separate and independent for different purposes. It is a widely used instrument in the world. Its counterpart is the Anglo-Saxon trust and has ancient roots in Roman law. Our country is perfected through a contract and is governed by Law No. 24,441 “Financing of housing and construction "(Articles 1 to 26 ° inclusive). This law is clear, the figure is considered safe and applicable to a wide range of issues in respect to their characteristics and comparative advantages. Noting its appearance in our country in 1995, and what happened in other countries and considering the prevailing economic and financial situation, you may assume that in the Republic Argentina, the application of this figure would maintain the strong growth that has been expressed.

Trust exists when a contract a person conveys the ownership of certain goods to another, where the latter holds for whose benefit is designated in the contract, until compliance with a term or condition. The trustee, who manages the property, must act with prudence and diligence of the good man of business, on the basis of the confidence placed in him, in defense of the trust assets (as it behaves like the new "owner") and the objectives of the trust. Otherwise, the settler or the beneficiary may demand compensation for damages caused.

The Trust is not the only service to allow running a business, simply has certain advantages which deserves to be evaluated. In essence, the use of the figure "trust" allows investors to invest their capital in a business that will be handled by an expert acting with prudence and diligence of a good businessman. Is proposed as a legal instrument, as is consistent with the principles of trust with many businesses are carried out for decades. The Trusts can be used for multiple purposes. It has the advantages of allowing build structures that meet legal very precisely the objective sought. The Trust does not guarantee returns, but says experience, diligence and honesty in business management. Attempts to push the Trusts as a panacea for business are dangerous abuse that may condition the use of a tool. Given the absence of system and the financial inability of companies to get financing formal and informal, appears appropriate to evaluate the trust as a mechanism to formalize and expand existing businesses to investors that did not participate.

Characteristics of the Trust

The trust is a legal instrument that, in the interests of one or more beneficiaries or for a specific purpose, can be structured in various ways "legal positions" based on fiduciary bonds. There is no hard and unit trust model, but many possible patterns that can build towards a final goal to reach. The subject of the trust or, more correctly, the “legal positions” is generally three: one is that the settler (or grantor or settler), the person ...