The trust is a contract through which the trustor entrusts assets or money to the trustee to manage them in favor of the beneficiary and, after a period of time, transmit them again to the trustor, the beneficiary or another person.
The first step we are going to take before fully entering into the meaning of the term trust is to know its etymological origin. In this case, we can establish that it is a word that derives from Latin, since it is the result of the union of two lexical components of said language:
-The noun fides , which can be translated as "faith."
-The word commissus , which is synonymous with "commission" and even "commission."
What is a trust
The term refers to a contract by which an individual (the trustor or trustor ) entrusts money or assets of his or her property to another legal or physical person (the fiduciary ) to manage them for the benefit of a third party (the beneficiary ) and, then of the fulfillment of a condition or a term, transmits them again to the trustor, the beneficiary or another subject.
When a trust is created, the parties involved do not own the property in question. These assets, furthermore, cannot be subject to prosecution by the creditors of the trustor or the trustee, nor be affected by the bankruptcy of any of them.
The trust allows the profits derived from the ownership of an asset to be allocated according to the will of its owner. The assets, in this way, are alienated from the owner and are subject to a specific destination.
The profits of a trust are distributed according to the will of the owner of the asset.
Its development
It can be said that the trust begins when the trustor (who decides the execution of the contract) appoints a trustee, transferring to him the administration of the assets from which it is derived. The trust specifies the purposes of the operation and names the beneficiary of the trustee's action. It should be noted that the final recipient of the assets placed in trust is called the trustee , who, although usually the same beneficiary, can also be the trustor himself or a third party.
The trust ends when a condition stipulated in the contract is met or when the defined period expires. It can also end early due to some circumstance. As a closing, the trust is liquidated and the assets are delivered to the appropriate party.
Trust and inheritance
As a general rule, we find that the term in question is widely used in relation to inheritances. In that case, we find three fundamental figures:
– The trustor or testator , who determines in his will the operation of the trust on the assets he bequeaths and of which he is the first owner.
– The fiduciary heir , which is the person who receives the assets but not for himself but for a third person, the trustee. Precisely for this reason, its function is to be in charge of preserving and correctly managing the assets and rights mentioned in the will and then being able to transmit them when the time comes.
– The trustee heir , who is the final heir . It is the person who, when the relevant time comes, will receive the assets that have been bequeathed to him and that he will receive from the hands of the aforementioned fiduciary heir.
In matters of inheritance, it can be established that there are two types of trusts: the conditional , which occurs when there is a condition for the trustee to transmit the assets to the trustee; or the so-called term , which refers to a specific period of time.