Fiduciary & Trust Structuring

The firm structures investment trusts, real estate development trusts, guarantee trusts, and estate planning trusts under Law 189-11. Trust agreement drafting covers every provision an institutional counterparty will require: settlor and beneficiary identification, asset descriptions, fiduciary powers and obligations, distribution mechanics, capital call provisions, reporting requirements, termination conditions, and dispute resolution. The firm coordinates directly with licensed fiduciary institutions regulated by the Superintendencia de Bancos, handling registration and regulatory filings. Pablo Luis González Burgos brings particular depth to this practice. He is a founder-member of the Dominican Association of Fiduciaries, Vice President of the Board of the Public Fiduciary Corporation of the Dominican State, and Vice President and 50% shareholder of a leading private fiduciary corporation.

The Dominican fideicomiso reduces effective income tax on retained earnings from 27% to 10%. Over a five-year hold period, the cumulative savings can exceed 40% of total tax that would have been paid under a corporate structure. Asset transfers into the fideicomiso are generally exempt from capital gains tax. ITBIS on trust operations is filed by the trustee on behalf of the trust. The firm handles withholding tax analysis on distributions to foreign beneficiaries under applicable treaty frameworks. OECD substance requirements must be satisfied for the fideicomiso to be recognized as a separate beneficial owner at the parent-level treaty analysis. The firm also manages DGII compliance and transfer pricing documentation for related-party transactions within the trust structure.

The fideicomiso serves institutional and private wealth clients in distinct ways. For institutional real estate portfolios, the structure provides asset segregation under Article 9 of Law 189-11, which prohibits creditors of the settlor and the fiduciary from pursuing trust assets. Private equity platform trusts are coordinated with parent-level Delaware, Cayman, or European fund vehicles, incorporating investor consent rights, co-investment provisions, and LP reporting standards. Family wealth structures address succession planning, asset protection, and multi-generational transfers. Guarantee trusts are used to secure construction financing and development obligations. Every structure is built to withstand scrutiny from lenders, limited partners, auditors, and regulatory authorities at exit.