The trust in Spain stands out for being a very useful legal tool in the estate planning. From the Bosch-Bages notary office in Barcelona, specialists in inheritances and family trusts, we offer a comprehensive overview of this figure, covering its different modalities, essential concepts and the significant advantages it provides, especially in its revocable version, thus offering flexibility and notable savings possibilities in various situations.

The trust in Spain

The trust It allows the testator to delegate the administration or custody of certain assets to a person, so that he or she, in turn, can later deliver them to another person. This structure makes it easier to name a direct heir and an indirect heir, thus sequencing the transmission of the inheritance. For example, the testator can establish that his partner initially inherits a property and, after her death, it passes to a nephew through a trustee substitution.

Acting as a heritage protection mechanism, the trust It ensures that a trusted person manages the testator's assets until they are handed over to the designated heir.

El Catalan Civil Code regulates the trust in Spain, describing the role of three key figures:

  • Causer or trustor: the testator who originates the legacy assets.
  • Fiduciary heir: who receives the assets with the commitment to preserve it and transmit it to the trustee.
  • Trustee heir: the final recipient of the estate.

This figure is particularly advantageous when seeking to preserve an estate within a specific circle, avoiding its dispersion or premature sale by the direct heir. It is also useful in cases where the final beneficiary is still young or you wish to postpone enjoying the assets.

Concepts related to trust

Living Trust: Among its many benefits, the avoidance of the lengthy succession process stands out, allowing a direct and efficient transfer of assets to heirs, which saves time, legal costs and judicial procedures.

Civil trust: It is a legal agreement by which a person, known as the trustor, transfers property, rights or assets to another, called the fiduciary, who assumes the responsibility of administering or managing them to fulfill a specific purpose, benefiting a third party called the beneficiary. Unlike other types of trusts, in a civil trust, it is not necessary to appoint an external trustee, allowing the trustor himself to act in this role under certain circumstances. This type of trust is governed by Civil Law regulations and focuses on objectives that are not necessarily commercial, being a versatile tool for estate and succession planning.

Blind trust: It is a legal structure in which the beneficiary, or the person establishing the trust, hands over the management and control of their property or assets to a trustee without having detailed knowledge of or direct influence over the specific investment and administration decisions that are made. This type of trust is often used to avoid conflicts of interest, especially between public officials or company executives, by ensuring that their decisions are not influenced by personal benefits derived from their assets.

Real estate trust: It is an agreement in which a trustor transfers ownership or control of one or more properties to a trustee, who is responsible for managing and controlling these real estate assets for the benefit of one or more beneficiaries. This type of trust is commonly used in development and construction projects, allowing the raising of capital from investors or future owners to finance the work. Once the project is completed, the rights to the assets are transferred to the beneficiaries according to the terms established in the trust, providing security and transparency to all parties involved.

Testamentary trust: It is a legal provision included in a will where the testator assigns part or all of his or her assets to a trustee, with the task of managing these assets for the benefit of one or more beneficiaries until a specific condition is met or a specified period passes. This mechanism allows the testator to have detailed control over how his assets should be managed and distributed after his death, ensuring that his wishes are carried out according to his instructions, protecting the interests of the designated beneficiaries.

The trust stands as a flexible and secure figure for testamentary and estate management, offering solutions adapted to the specific needs and wishes of the testator.

Types of trust in an inheritance

  • Conditional and term: The main difference between the conditional trust and the term trust lies in the nature of the condition that triggers the transfer of the estate. In a conditional trust, the transfer is dependent on the occurrence of a specific event, while in a term trust, it is based on the passage of a certain period of time set forth in the will. The latter is not subject to events but to the simple passage of time
  • Pure and residue: The pure trust imposes on the trustee the obligation to fully preserve the assets without enjoying the assets. In contrast, the residue trust allows the trustee to use or enjoy the assets, although he must keep a specific portion or may have no restrictions on how much of the estate he can use. The key difference lies in the trustee's ability to benefit from the assets during the trust period.​
  • Revocable and irrevocable: The main difference between a revocable and irrevocable trust lies in the flexibility of modification and control over the assets. In a revocable trust, the settlor has the ability to modify or terminate the trust at any time during his lifetime. This means they can change the terms, beneficiaries, or even cancel the trust. On the other hand, an irrevocable trust is final once established; The settlor gives up control over the assets and cannot make changes without the consent of the beneficiaries.