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:
ZEDE Organic Law (Decreto No. 120-2013) and relevant Constitutional provisions
Próspera Charter
Statutes
Regulations
Ordinances
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