My U.S. trust can own Real Estate in Ecuador
The simple answer is YES, a created United States trust certainly can own REAL ESTATE in Ecuador. When it refers to Real Estate Planning there are specific circumstances that must be considered, such as Ecuador's inheritance laws and its taxes; which are inflexible and must be complied to, according to what is provided by the Ecuadorian Law, the Heirs (first beneficiaries of the decease person) are his/her children, this implies a series of legal procedures in Ecuador, this process is known as Effective Possession deed (Escritura de posesión efectiva). This process can take several months, it can be exhausting and sometimes can turn out to be quite expensive because the inheritors need to pay the inheritance taxes, specially if heirs are living away in this international new endeavour.
A good long-term option with excellent results is to buy real estate with a trust created in the United States, The Ecuadorian Law allows and if that is not enough, this legal figure helps to avoid inconvenients about the probation process in Ecuador when one of the trust settlor or beneficiary passes away; since the trust keeps being an entity regardless of who settled it up, it will continue being the owner of the Real Estate property in Ecuador.
The trust survives people, as general concept, and it has specific instructions on how to act through a duly appointed Legal Representative to subscribe any contracts in Ecuador.
Along with the setting up of the U.S. trust, preferably with a lawyer in the United States. it must created certain documents, ie. The appointment of the representative of the trust to Ecuador, the incorporation of the trust, duly Apostilled. At the closing of the Real Estate property these documents must be in Ecuador to be use as enabling on the deed. Registering the Property on behalf of the Trust is the last step of the process., which normally takes 2 to 3 weeks.
For more information regarding purchasing Real Estate in Ecuador with a U.S. trust, email us at firstname.lastname@example.org
The EcuaAssist Team
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