Trust funds are not registered in any public register.

Trust funds are established by a contract or last will, whereas the founder assigns certain property to a trustee for a certain purpose. As the establishment of the fund is linked to the moment the trustee accepts administration of the entrusted property, it is recommended this be included directly in the contract.

Trust funds follow a statute issued by the founder. The statute must have the form of a notarial deed. A notarial deed is a public document, as follows from Section 6 of the Notarial Code. It is the basic document used to resolve/specify the most important questions related to the fund’s operation – its name, what assets it contains on its establishment, what is its purpose, and/or who should receive payment from the fund – who will be the fund’s beneficiaries.

With respect to the requirement of the statute being a notarial deed, it is expected that the establishment of a trust fund will often take place at a notary public. One suitable and efficient model will be to (i) create a trust fund via a contract, (ii) receive/obtain the fund’s statute and (iii) keep both documents in escrow with the notary public, all at a single meeting with a notary public.

Since trust funds are not listed on any public register (for information on the intended registration of trust funds see news HERE), the only documents of its existence are the contract and statute. These documents will also specify the trustee and who is therefore entitled to manage the fund’s assets. With respect to the importance of these documents, it is recommended one copy of these documents be kept with the notary public and one copy at a law office. The founder should also keep one copy of the contract and the statute, so that he/she may make further copies to document the existence of the trust fund if necessary.