The fiduciary is the person who will receive an inheritance by order of the testator (trustor) but cannot dispose of it. You have the obligation to keep it and transmit it to the person indicated by the trustor in the will.
The fiduciary is the person who receives the inheritance in the first place (he is an heir) but only to keep it and then transmit it to another person who has designated the testator.
Characteristics of the trustee
The main features are:
- The trustee must keep the inherited assets, for this he must make conservation and improvement expenses, subsequently requesting reimbursement from the trustee.
- The trustee may dispose of the assets if he has the authorization of the trustee
- The trustee must answer for the debts of the inheritance even with his own assets, but then he can request that the trustee be reimbursed.
Although the trust usually entails the obligation to conserve and transmit without the possibility of disposing of the inherited assets there is a type of trust that allows the trustee to enjoy the inherited.
Types of Escrow
- Pure trust: Obligation of the trustee to keep the assets that will then be transmitted, which implies the unavailability of the assets.
- Waste trust: Obligation of fiduciary to transfer the goods, but has availability over them and depending on what type of availability there are two subtypes:
- The fiduciary is instructed to keep at least a minimum of the inheritance to transmit to the next
- Nothing is indicated to the fiduciary and the remainder of the inheritance will be transmitted (if anything remains)
When should the trustee transmit the inheritance to the trustee?
- If the settlor / testator has said nothing except the order to inherit, the trustee receives the inheritance upon the death of the trustee.
- If the settlor / testator sets a condition, the trustee receives the inheritance upon fulfillment of the condition. It must be a future and uncertain event. Example: A institutes as an heir to B, providing that when C graduates in law, he replaces him.
- If the settlor / testator sets a term, the settlor receives the inheritance upon completion of the term. It must be a certain period. Example: A institutes as heir to B providing that within 6 years C replace him.