Guarantee trust

A guarantee trust is the fiduciary outline that a natural or legal person can use to transfer assets or resources to an autonomous patrimony that is managed by a fiduciary society, to ensure the compliance of third-party obligations.

How does it work?
Characteristics
  • Irrevocable transfer of one or more assets or its product to guarantee the payment of obligations to third-parties.
  • The beneficiary is the creditor of these obligations, and it has the power to request the sale of the assets on the trust, so its product pays the due obligations or the outstanding balance.
  • The beneficiary can be a financial entity, an insurance company, among others. A guarantee execution is a fiduciary arrangement, that does not require judicial intervention
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