Sham trust in Argentina (Commentary to the “Itik SRL” case) “Sindicatura in Itik SRL c/Romero, Carlos y Otros. Acción de inoponibilidad por fraude” (5 May 2020) Court: Civil and Commercial Chamber of Appeals 9th Circuit (Cordoba Province—Argentina)
Publication: Trusts & Trustees, 2020
Author: Nicolas Malumian
Category: Fideicomiso y Trust
Abstract
In the Common Law world, there are many antecedents regarding sham trusts and a huge body of analysis. Therefore, it might be surprising to learn that the situation is completely different in the Civil Law world. The relevance of this case is that it is one of the very few in which a trust is subject to legal scrutiny and declared a sham.
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Trusts in Spain?
Publication: Trusts & Trustees, 2021
Author: Pedro Ignacio Botello Hermosa and Nicolas Malumian
Spain has no trust regulations at the national level. However, there are inheritance legal schemes with similar effects. Furthermore, certain autonomous regions of Spain could enact their own inheritance law regulations and provide legal institutions that are analogous to trusts. In this article, we review these institutions from both an academic and practical point of view.
Sustitucion Fideicomisaria y Fideicomiso Testamentario
Publication: Revista del Código Civil y Comercial CCyC1, 2021
Author: Pedro Ignacio Botello Hermosa and Nicolas Malumian
El artículo comenta y compara la sustitución fideicomisaria de España y el fideicomiso testamentario en la Argentina, con especial énfasis en la protección de personas con discapacidad. Se comenta como estas dos instituciones antagónicas han evolucionado para cumplir fines similares. The paper compares the Spanish fiduciary sustitution and the Argentine testamentary trust, with special focus in the protection of persons with special needs. It is analyzed how to legal schemes that that were seen as oposing each other evolved in order to fulfill similar needs.
Local trusts and forced heirship (Commentary to the “CRO” case) C. R. O. c/C. O. N. y otros s/nulidad de acto jurídico (22 October 2019) Court: Civil and Commercial Law, Chamber of Appeals of Necochea (Buenos Aires Province—Argentina)
Publication: Trusts & Trustees, 2020
Author: Nicolas Malumian
This case is a leading case relating to local trusts and forced heirship. Forced heirship is a restriction to the liberty to write a will and determine the destiny of his/her future estate by the testator. It can be found in all South America (not in Latin America from Panama to México) and in most Civil Law countries in Europe, besides similar restrictions under sharia law. The way to avoid these restrictions has been the creation of a foreign trust over foreign assets. Although authors have long analyzed whether a local trust allows the avoidance of local forced heirship rules over local assets, there has been no case law in this respect (at least since the inclusion of the trust in Argentine law in 1995). In short, this is the first time a local trust over local assets has been under the scrutiny of the courts to determine if there is a violation of forced heirship.