Contributed By Baker McKenzie S.A.S.
The most popular method for asset protection planning is the incorporation of a separate vehicle from the individual's personal estate, providing asset protection from third parties or creditors.
Individuals may place assets held in their own names into a local trust in order to designate them or their proceeds to a specific purpose or persons. The assets placed into a properly structured trust form an estate separate from the assets of the settlor.
In structuring asset transfers, whether or not gratuitously made, attention should be paid to Colombia's creditor protection laws. The Colombian Commercial and Civil Codes include specific rules on the enforcement of a revocation action (acción revocatoria) against the unjustified actions performed by debtors prior to the request of a treaty process, a mandatory liquidation process or a restructure process.
Further asset protection can be obtained through an enforceable investment agreement with the following jurisdictions.
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