TRUST & FIDUCIARY SERVICES · PANAMA

Panama Trusts & Fiduciary Services

Protect Assets, Preserve Wealth and Plan for Future Generations.

Díaz & Asociados assists local and international clients with the legal structuring, documentation and implementation of trusts and fiduciary arrangements in Panama, working alongside licensed fiduciaries when required under Panamanian law.

Panama Trust Law Overview

Panama has one of the most developed trust laws in Latin America. Trusts are regulated by Law 1 of January 5, 1984, as amended by Law 21 of 2017, under the supervision of the Superintendency of Banks of Panama.

A trust allows an individual or company to transfer assets to a fiduciary structure for administration, protection, investment, succession planning or specific commercial purposes.

At Díaz & Asociados, we provide legal advice, trust structuring, drafting of trust agreements and coordination with licensed fiduciary institutions when necessary.

Legal basis: Law 1 of January 5, 1984 and Law 21 of 2017, under the regulatory supervision of the Superintendency of Banks of Panama.

What Is a Panama Trust?

A Panama trust is a legal arrangement through which a person or company (Settlor) transfers assets or rights to a Trustee to manage them according to specific instructions for the benefit of designated beneficiaries.

Trusts may be used for:

ASSET PROTECTION

Protect assets from creditors, litigation and other claims through a properly structured trust arrangement.

ESTATE PLANNING

Ensure an orderly transfer of wealth to future generations without the delays and costs of probate proceedings.

FAMILY WEALTH PRESERVATION

Preserve family assets across generations with professionally administered structures tailored to beneficiary needs.

INVESTMENT MANAGEMENT

Centralize and professionally manage investment portfolios, securities and financial assets through a fiduciary structure.

REAL ESTATE PROJECTS

Hold and administer real property and development projects through specialized real estate trust structures.

ESCROW ARRANGEMENTS

Secure commercial and real estate transactions with neutral third-party custody of funds and documents.

BUSINESS TRANSACTIONS

Facilitate complex corporate and commercial transactions through structured fiduciary arrangements and security trusts.

COLLATERAL & SECURITY

Provide security structures for financing arrangements, guarantees and collateral management through trust mechanisms.

SUCCESSION PLANNING

Implement efficient succession strategies that minimize legal complexities and ensure assets reach intended beneficiaries.

Trust Services We Assist With

We assist clients with a wide range of trust structures and fiduciary services under Panamanian law, working in coordination with licensed trustees when required.

TRUST STRUCTURING & PLANNING

Family & Personal Trusts

Asset protection trusts, family trusts, estate planning trusts, testamentary trusts, educational trusts, and special needs beneficiary trusts.

COMMERCIAL & CORPORATE TRUSTS

Business Structures

Administration trusts, payment administration trusts, escrow arrangements, security trusts, corporate transaction trusts, and shareholding structures.

INVESTMENT & FINANCIAL TRUSTS

Portfolio Administration

Investment trusts, securities issuance structures, portfolio administration trusts, and asset management structures.

REAL ESTATE & DEVELOPMENT TRUSTS

Property & Development

Real estate trusts, project administration trusts, construction and development trusts, and escrow accounts for transactions.

Trust Structuring and Planning

Asset protection trusts
Family trusts
Estate planning trusts
Testamentary trusts
Educational trusts
Special needs beneficiary trusts

Commercial and Corporate Trusts

Administration trusts
Payment administration trusts
Escrow arrangements
Security trusts
Corporate transaction trusts
Shareholding structures

Investment and Financial Trusts

Investment trusts
Securities issuance structures
Portfolio administration trusts
Asset management structures

Real Estate and Development Trusts

Real estate trusts
Project administration trusts
Construction and development trusts
Escrow accounts for real estate transactions

Other Fiduciary Services

In addition to trust structuring, Díaz & Asociados provides legal support for the following fiduciary arrangements and structures.

Private Interest Foundation Administration

Legal structuring and administration support for Private Interest Foundations alongside or as an alternative to trust structures.

Share Custody Arrangements

Fiduciary custody of corporate shares and equity interests for administrative, compliance or security purposes.

Corporate Governance Structures

Implementation of fiduciary arrangements within corporate governance frameworks for holding companies and operating entities.

Escrow Services

Neutral third-party custody of funds, documents and assets for commercial transactions, real estate closings and corporate deals.

Document and Securities Custody

Secure custody of important documents, bearer instruments, certificates and securities by a licensed fiduciary.

Voting Representation Structures

Fiduciary voting rights structures for corporate entities, foundations and other legal arrangements.

Fiduciary Participation

Fiduciary participation in corporate and foundation structures for governance, compliance and succession planning purposes.

Benefits of a Panama Trust

Panama trust structures offer significant advantages for individuals and companies seeking asset protection, wealth preservation and efficient succession planning.

PROTECTION & PRIVACY

Confidentiality • Asset protection from claims and creditors • Reduced probate exposure • Transparent accountability

FLEXIBILITY

Estate planning flexibility • Flexible asset contributions and withdrawals • Beneficiary protection • International asset holding

PROFESSIONAL ADMINISTRATION

Professional administration by licensed fiduciaries • Efficient succession planning • Tax benefits under Panamanian law for qualifying assets

Note: Tax benefits available under Panamanian law for qualifying assets and transactions. Consult with Díaz & Asociados for specific advice regarding your situation.

What Assets Can Be Placed Into a Trust?

Virtually any asset can be transferred into a trust structure in Panama, including both local and international assets.

FINANCIAL ASSETS

Cash • Bank deposits • Securities • Investment portfolios • Business interests • Intellectual property

REAL PROPERTY

Real estate • Development projects • Commercial properties • Land • International real property assets

TANGIBLE & OTHER ASSETS

Artwork • Jewelry • Yachts • Aircraft • Shares • Corporate interests • International assets of any nature

Requirements

To establish a trust, clients generally must provide the following documentation and information:

Due diligence documentation
Identification documents (passport, proof of address)
Source of funds information
Supporting documentation for assets being transferred
Information regarding beneficiaries
Purpose and objectives of the trust structure

Important: Requirements may vary depending on the type of trust, the nature of the assets involved and the fiduciary institution selected. Díaz & Asociados will guide you through the specific documentation required for your structure.

How Trust Costs Work

Trust structures generally involve several cost components. Costs vary depending on the complexity of the structure, asset types, fiduciary institution selected and ongoing administration requirements.

LEGAL STRUCTURING FEES

Initial fees for legal advice, trust drafting, due diligence review and documentation preparation by Díaz & Asociados.

TRUSTEE / FIDUCIARY FEES

Annual administration fees charged by the licensed fiduciary institution managing the trust assets and administration.

ONGOING ADMINISTRATION

Periodic costs for accounting, compliance, reporting and administration of the trust structure as required.

RESIDENT AGENT FEES

Resident agent fees applicable where Panamanian legal representation is required under applicable law.

ASSET-SPECIFIC COSTS

Additional costs may apply depending on the nature of assets contributed, such as real estate registration fees or investment account charges.

THIRD-PARTY COSTS

Government fees, notary fees, translation costs and other third-party expenses depending on the structure and jurisdiction of assets.

Tax Disclaimer: The information provided here is for general informational purposes only and does not constitute legal or tax advice. Please consult with Díaz & Asociados for advice specific to your circumstances.

Why Work With Díaz & Asociados

Our firm brings practical experience in Panamanian trust law, asset protection planning and international structuring to every client engagement.

PANAMA TRUST LAW EXPERIENCE

In-depth knowledge of Panamanian trust legislation, fiduciary regulations and practical structuring requirements.

ASSET PROTECTION PLANNING

Strategic planning to protect assets from creditors, litigation and other risks through properly structured trust arrangements.

ESTATE PLANNING STRATEGIES

Comprehensive estate planning solutions integrating trusts, foundations and corporate structures for efficient wealth transfer.

FOUNDATION & TRUST INTEGRATION

Experience combining Private Interest Foundations and trust structures for complex wealth planning and succession objectives.

LICENSED FIDUCIARY COORDINATION

Established relationships with licensed fiduciary institutions in Panama to facilitate smooth trust establishment and administration.

BILINGUAL SERVICE

Complete legal guidance in English and Spanish, ensuring clear communication with all parties throughout the structuring process.

Corporate and International Structuring

Díaz & Asociados has extensive experience in corporate and international structuring matters that complement trust and fiduciary services.

CORPORATE STRUCTURING

Integration of Panama corporations and foundations with trust structures for comprehensive wealth management.

INTERNATIONAL ASSET HOLDING

Structures for holding international assets including real estate, investments and business interests through Panamanian trusts.

MULTI-JURISDICTION COORDINATION

Coordination of Panamanian trust structures with legal requirements in other jurisdictions where applicable.

SUCCESSION PLANNING

Comprehensive succession planning integrating trusts, foundations and corporate structures for international families.

BANKING COORDINATION

Assistance with banking relationships for trust structures, including coordination with Panamanian and international banks.

REAL ESTATE STRUCTURING

Integration of real estate holdings within trust structures for ownership, administration and succession purposes.

INVESTMENT MANAGEMENT

Coordination with investment managers and brokers for trust-held investment portfolios and financial assets.

COMPLIANCE & REPORTING

Assistance with compliance obligations applicable to trust structures under Panamanian law and international standards.

PERSONALIZED GUIDANCE

Each client receives individualized attention and direct access to our legal team throughout the structuring process.

Why Use a Panama Trust?

Panama has been a leading international trust jurisdiction for over four decades. Whether you are structuring for asset protection, estate planning, investment management or business purposes, a Panama trust provides a legally robust, confidential and flexible framework under the supervision of the Superintendency of Banks.

What is a Panama trust?

A Panama trust is a legal arrangement governed by Law 1 of 1984 in which a Settlor transfers assets to a licensed Trustee to hold and manage according to specific instructions for the benefit of named beneficiaries. Panama trusts may be revocable or irrevocable and serve private, family or commercial purposes.

How do trusts work in Panama?

A Panama trust is created through a written trust agreement between the Settlor and a licensed Trustee. The Trustee holds trust assets separately from its own patrimony and administers them per the trust deed. Beneficiaries receive economic benefits as specified. The structure is supervised by the Superintendency of Banks.

What is a fiduciary in Panama?

A fiduciary in Panama is a bank or institution licensed by the Superintendency of Banks to act as Trustee and professionally administer trust assets. Licensed fiduciaries are subject to strict regulatory oversight, anti-money laundering obligations and asset segregation requirements under Panamanian law.

Can foreigners establish trusts in Panama?

Yes. Panamanian trust law imposes no nationality or residency restrictions on Settlors. Foreign individuals and companies may freely establish Panama trust structures. Panama trusts may also hold assets located anywhere in the world, making them well-suited for international asset holding.

Are Panama trusts confidential?

Panama trust agreements are private contracts and are not registered in any public registry. The identities of Settlors, Trustees and beneficiaries are not publicly disclosed. Panama law includes express fiduciary confidentiality provisions, subject to applicable due diligence and regulatory reporting obligations.

What assets can be placed into a trust?

Virtually any asset may be transferred into a Panama trust: cash, bank deposits, real estate, corporate shares, investment portfolios, securities, business interests, intellectual property, artwork, jewelry, yachts, aircraft and international assets. Both Panamanian and foreign-located assets may be contributed.

Frequently Asked Questions

The following questions address the most common inquiries we receive regarding Panama trust structures and fiduciary services.

What is a Panama trust?

A Panama trust is a legal arrangement through which a person or company (Settlor) transfers assets or rights to a Trustee to manage them according to specific instructions for the benefit of designated beneficiaries, governed by Law 1 of 1984 as amended.

Who can establish a trust in Panama?

Both individuals and legal entities, whether Panamanian or foreign, can establish a trust in Panama. There are no nationality or residency restrictions on who may act as a Settlor.

What assets can be transferred into a trust?

Virtually any asset can be placed into a Panama trust, including cash, bank deposits, real estate, shares, securities, business interests, investment portfolios, artwork, jewelry, yachts, aircraft, intellectual property and international assets.

What is the difference between a trust and a Private Interest Foundation?

A trust is a fiduciary arrangement where assets are held and managed by a Trustee. A Private Interest Foundation is a separate legal entity that holds and administers assets itself. Both serve estate planning and asset protection purposes, but have different legal structures and governance.

Can foreigners establish trusts in Panama?

Yes. Panamanian trust law places no restrictions on the nationality or residency of the Settlor. Foreign individuals and companies may freely establish trust structures in Panama.

Are Panama trusts confidential?

Panama trust agreements are generally private documents and do not require public registration. The identity of beneficiaries and the terms of the trust are typically not disclosed publicly, subject to applicable due diligence and reporting obligations.

What documents are required to establish a trust?

Generally required documents include due diligence documentation, identification documents, source of funds information, supporting documentation for assets being transferred, beneficiary information and a description of the purpose and objectives of the trust.

How much does a Panama trust cost?

Costs depend on the complexity of the structure, asset types, fiduciary institution selected and ongoing administration requirements. Costs typically include initial legal structuring fees, trustee administration fees and ongoing administration costs. Contact Díaz & Asociados for a specific estimate.

Do I need to travel to Panama?

Many aspects of trust structuring can be handled remotely through coordination with our legal team. Some steps, such as execution of documents and certain fiduciary requirements, may require in-person attendance or notarization in your jurisdiction.

Can a trust hold international assets?

Yes. Panama trusts may hold assets located in other jurisdictions, including international real estate, foreign bank accounts, foreign securities and other international assets. Additional legal considerations may apply depending on the asset location.

Can a trust be used for estate planning?

Yes. Trusts are one of the most effective legal tools for estate planning in Panama. A well-structured trust can ensure the orderly transfer of assets to designated beneficiaries while minimizing probate exposure and administrative delays.

Can a trust be used to protect family assets?

Yes. Family trusts are specifically designed to hold, administer and protect family assets across generations. A properly structured trust can shield assets from creditors, litigation and other claims while ensuring professional administration and beneficiary protection.

How long does it take to establish a trust in Panama?

The time to establish a trust depends on the complexity of the structure, the due diligence process and the time required to transfer assets into the trust. Díaz & Asociados will provide a timeline estimate based on your specific situation.

Related Legal Services

Clients considering a Panama trust structure often also explore:

Panama Trusts & Fiduciary Services

Protect your assets, preserve your legacy and structure your wealth efficiently through Panama trust solutions.

Our legal team is available to advise on trust structuring, documentation and implementation of fiduciary arrangements in Panama.