The transfer of assets is one of the most significant decisions a person can make. Beyond the desire to protect loved ones, it is essential to select the appropriate legal instruments to ensure security, certainty, and continuity across generations.
Among these instruments, trusts have become one of the most effective mechanisms for protecting and managing assets, preventing future disputes, and ensuring that the owner’s wishes are fully respected.
Two Primary Alternatives: Testamentary vs. Living Trusts
Although both structures serve to protect and transfer assets, they differ in their timing, scope, and strategic advantages:
| Subject | Testamentary Trust | Living Trust |
| When Is It Established? | Takes effect only after the settlor’s death | Created and becomes effective during the settlor’s lifetime |
| Primary Objective | Transfers assets upon death, avoiding probate proceedings | Manages and protects assets immediately, ensuring an orderly transfer to beneficiaries |
| Control | The settlor retains full control until his/her passing | The settlor may retain control or delegate administration upon creation of the trust |
| Advantages | Simplicity and lower administration costs | Greater flexibility and the ability to design long-term asset management structures |
Why Selecting the Right Structure Matters
Choosing between a testamentary trust and a living trust affects not only the timing of asset transfers, but also the efficiency, continuity, and legal certainty with which they occur. Each family and each estate carries unique circumstances, financial considerations, and long-term objectives that must be evaluated before deciding on the appropriate structure.
For this reason, specialized legal guidance is essential to ensure that the chosen instrument provides clarity, continuity, and full legal certainty.
Tailored Estate-Planning Solutions for Long-Term Protection
At Roqueñí Abogados, we help clients design tailored estate-planning structures aligned with their needs—ensuring that today’s decisions translate into peace of mind, protection, and continuity for the future.
More than legal advisors, we are your strategic partners in preserving your legacy.