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Trusts

An article describing how Trusts work in Próspera on a high level

Lonis avatar
Written by Lonis
Updated this week

Understanding Trusts in Próspera ZEDE: Legal Framework and Operations

Legal Framework for Trusts in Próspera ZEDE

Próspera ZEDE's trust law exists within a defined legal hierarchy:

  1. ZEDE Organic Law (Decreto No. 120-2013) and relevant Constitutional provisions

  2. Próspera Charter

  3. Statutes

  4. Regulations

  5. Ordinances

  6. Resolutions

Trust law specifically derives from two primary sources:

  • Common-law trusts: Governed by the Restatement of Trusts Third (2003-12), adopted through the Roatan Common Law Code (RCLC) §3405

  • Statutory trusts: Governed by the Uniform Statutory Trust Entity Act, adopted through RCLC §3710

If a specific rule is absent, Delaware common law as of November 30, 2018 applies as a gap-filler, per RCLC §5004.

Types of Trusts Available

Common-Law Trusts

These are traditional fiduciary relationships where a trustee holds property for beneficiaries:

  • No formal registration required (though writing may be required for certain trusts)

  • Suitable for family, charitable, and other traditional trust purposes

  • Governed by the Restatement of Trusts Third principles

Statutory Trusts

Business-oriented entity formed by filing with the Próspera Entity Registry:

  • Created by filing a certificate of trust

  • Can have any lawful purpose except predominantly donative purposes

  • Provides liability protection for trustees and beneficial owners

  • Offers flexible governance structures

Series Trusts

A specialized form of statutory trust:

  • Can establish separate series of assets with liability segregation

  • Requires specific provisions in the certificate of trust

  • Needs proper recordkeeping to maintain separation of assets

  • Combines entity benefits with internal asset partitioning

Key Formation Requirements

Common-Law Trust Formation

  • Requires manifestation of intention to create a trust

  • Needs identifiable trust property

  • Must have definite beneficiaries (or charitable purpose)

  • Requires trustee capacity and legal purpose

Statutory Trust Formation

  • File certificate of trust with the Próspera Entity Registry containing:

    • Trust name (complying with naming requirements)

    • Principal office address

    • Registered agent information in Próspera ZEDE

    • Series statement if applicable

  • Create trust instrument (governing document)

  • Pay required filing fees

Governance and Administration

Common-Law Trust Governance

Trustees have fiduciary duties including:

  • Duty of loyalty to beneficiaries

  • Duty of prudence in administration

  • Duty to maintain trust property

  • Duty to provide information to beneficiaries

Statutory Trust Governance

  • Activities managed by or under authority of trustees

  • Trustees act by majority vote

  • Governing instrument can create classes of trustees or beneficial owners

  • May delegate powers and duties with proper oversight

  • Directors' and officers' liability protection available

Compliance Requirements

  • Statutory trusts must file annual reports

  • Must maintain a registered agent in Próspera ZEDE

  • Must update registry information when changes occur

  • Must pay applicable fees

  • Foreign statutory trusts must register to do business in Próspera

Entity Transactions

The framework allows for:

  • Mergers of trusts with other entities

  • Interest exchanges

  • Conversions between entity types

  • Domestications (changing jurisdiction)

Each transaction requires specific filings and approvals.

Foreign Statutory Trusts

Foreign statutory trusts:

  • Must register to do business in Próspera ZEDE

  • Must maintain a registered agent

  • Are subject to annual reporting requirements

  • May withdraw registration when no longer doing business in Próspera

Fee Structure

Various fees apply to trust-related filings, including:

  • Certificate of trust: $150.00

  • Annual reports: $100.00

  • Amendments: $50.00

  • Registered agent changes: $25.00

Fees may be paid in USD, Lempira, or qualifying cryptocurrencies.

Practical Considerations

  • Electronic records and signatures are valid under the Uniform Electronic Transactions Act

  • Court procedures follow the principles in ALI & UNIDROIT's Principles of Transnational Civil Procedure

  • Arbitration is recognized as a dispute resolution mechanism

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