GAMASE • Gala Management Service

Requirements for Opening a Trust

The basic requirement of every Trust established in Panama is that it be in writing and contain a minimum of the following:

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Express declaration of the will to establish the Trust pursuant to the laws of the Republic of Panama.

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Clear and complete identification of the Grantor, Trustee and beneficiary; and of the substitute Trustees and beneficiaries, if any.

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Place and date of establishment of the Trust and its domicile (which normally happens to be the same as the Trustee’s).

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Detailed description of the entrusted assets, capital or initial patrimony.

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Accumulation and disposal rules for the assets, revenues and products generated by said assets

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Powers and obligations of the Trustee, as well as any applicable prohibitions and limitations to be imposed

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Designation of a Resident Agent in the Republic of Panama, which must be a lawyer or a law firm that will countersign the Trust contract.

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Amount of segregated honoraria as to:

▪	Initial fixed, non recursive charge, for establishment of the Trust.
▪	Charges for management of the Trust (these charges can be fixed or variable, invoiced monthly or annually, depending on the nature of the Trust) and the form in which these honoraria and any other expense will be met.

In addition to these basic requirements, inclusion of all other clauses that the Grantor or the Trustee agrees to add, “which are not contrary to morality, the law or public order.”

Other information required for Opening a Trust

The Superintendent of Banks provides oversight for fiduciary activities in Panama. This agency has established certain rules related to the prevention of money laundering, which all banks and trust companies must enforce.

In this sense, it is strictly necessary that the natural or legal entity that wishes to establish a Trust make available certain personal and business data, including banking and commercial references; declare the origin and destination of the assets or funds that would be entrusted; and identify the beneficiaries, if a third party, among other details and references.