“Fiducia” means trust, confidence.

The principal characteristic of a trust is the isolation and protection it provides to the assets composing the trust estate.

• The assets transferred to the trustee form a separate estate.
• Such assets are free from any individual action against the trustee, as well as from the effects of the trustee’s bankruptcy or insolvency.
• The insolvency or bankruptcy of the trustee does not entail the insolvency or bankruptcy of the trust.
• The trustee is not liable with property of its own for the obligations contemplated in the Trust, unless the trustee fails to comply with its duties towards the other parties thereto (settlors and/or beneficiaries)
• The settlors and/or beneficiaries are not liable for the obligations undertaken
in furtherance of the objectives of the trust.
• The trust estate may not be declared insolvent or bankrupt. Should such estate turn out insufficient to meet the obligations agreed upon, it is liquidated.

• The duties undertaken by the trustee are considered of a professional nature. Thus, the trustee:
- Must fulfill its duties with the prudence and diligence of a “good businessman”
- Will be liable for fraudulent or negligent behavior in the performance of its duties
- Must render accounts .
- Is not entitled to acquire the property made a part of the trust estate
- May not dispose of or levy any encumbrance on the trust estate, unless
otherwise provided in the agreement.
- The original trustee may be replaced by a substitute trustee designated
in the agreement