- +506-8342-8989
- Denise.Mora@EscrowAndTrustAdvisors.com
- Los Yoses, San José, Costa Rica
A trust is a legal and financial tool that allows for the management of assets or funds in a secure and transparent manner, in order to fulfill a specific purpose. In Costa Rica, trusts are widely used to protect assets, facilitate transactions, and structure succession or business plans.
It is an agreement involving three essential parties:
Settlor: The person or entity that transfers assets, money, or rights to the trust with a specific purpose.
Trustee: The individual or entity responsible for managing those assets according to the terms set in the trust; in this case, Escrow & Trust Advisors serves as the trustee.
Beneficiary: The person or entity entitled to receive the benefits from the trust, as agreed.
Special Cases
Although every trust has a settlor, a trustee, and a beneficiary, the same individual can take on more than one role. For example, a business owner in Costa Rica can create a trust to manage their assets and also be the beneficiary of the generated income.
The advantage of a trust is that it provides both security and transparency, as the trustee must act with full impartiality and strictly adhere to the agreed-upon terms.
A guarantee trust is a secure way to back a debt or commitment.
How does it work?
An individual or company (trustor) transfers an asset or property to Escrow & Trust Advisors, who safeguard it until the agreed-upon conditions are met. If the obligation is fulfilled, the asset is returned to the trustor; if not, the trustee may transfer it to the beneficiary as payment security. This mechanism prevents disputes and streamlines the fulfillment of important agreements.
Example: An investor lends money to someone intending to purchase a property. To secure the loan repayment, the land is placed in a trust managed by Escrow & Trust Advisors. If the borrower pays as agreed, the property is returned; if not, the trustee transfers the land to the investor as collateral.
This is a tool that allows you to delegate the management of assets or property to a trusted third party.
How does it work?
An individual or company (trustor) transfers their assets to Escrow & Trust Advisors, who manage them according to specific instructions. The trustee ensures the assets are handled efficiently and used in line with the agreement. Beneficiaries receive the income or returns generated, with full transparency and professionalism in the administration of the estate.
Example: A business owner places their properties in a trust managed by Escrow & Trust Advisors to handle rental collections. Each month, Escrow & Trust Advisors collect payments, cover maintenance costs, and deposit the profits into the owner’s account—without requiring their direct involvement.
This is a secure way to plan the distribution of an estate after the settlor’s death.
How does it work?
An individual (settlor) provides instructions on how their assets should be distributed and transfers them to Escrow & Trust Advisors, who safeguard and manage them until the time comes to release them to the beneficiaries. This avoids lengthy probate procedures and ensures the settlor’s wishes are fulfilled without complications.
Example: A father sets up a trust so that his children will receive the estate once they turn 25. In the meantime, Escrow & Trust Advisors safeguards and manages the assets according to the will, ensuring compliance with the instructions and preventing succession issues.
This mechanism ensures that a specific obligation is fulfilled in an orderly and secure manner.
How does it work?
An individual or business (settlor) deposits funds or assets in Escrow & Trust Advisors, who manage and release them only when the agreed conditions are met. Beneficiaries receive the payments or assets at the appropriate time, ensuring all parties meet their commitments without risks or delays.
Example: A construction company deposits funds into a trust managed by Escrow & Trust Advisors to ensure that payments to its suppliers are made based on the project’s progress. The trustee only releases payments when specific milestones are met, providing transparency and security to all parties involved.
Experts in Trusts, Escrow Services, and Legal Advisory in Costa Rica — we protect and manage your assets through secure, tailored solutions that meet your specific needs.
©2025 All rights reserved.
DISCLAIMER: E&T Escrow and Trust Advisors S.R.L. is supervised solely in matters related to the prevention of money laundering, terrorism financing, and weapons of mass destruction, in accordance with the regulations of the Costa Rican Financial Intelligence Unit (ICD). SUGEF does not oversee its financial activities, nor does it guarantee its security, stability, or solvency. As a regulated entity, we comply with Costa Rican regulations and apply due diligence policies to every transaction.
