Contributed By Baker McKenzie S.A.S.
Foreign entities such as trusts and private foundations may be used to hold and manage assets for minor children or adults with disabilities that may be transferred once a specific condition is met.
Local trusts may also be used to hold and manage assets for minor children and grandchildren that may be transferred once a specific condition is met (eg, legal age).
Under Colombian law, any individual is subject to legal rights and obligations except for individuals deemed to be incapable by a Colombian judge after a medical evaluation and due process.
An individual may be declared incapable by means of a voluntary interdiction whereby a judge declares that an individual is unfit to exercise his or her rights and obligations. Once the individual has been declared unfit to handle his or her own aﬀairs, the judge will designate a guardian to take care of the individual's aﬀairs.
Due to the increase in life expectancy in Colombia, the Colombian government has created an expert commission (Comisión de Reforma de Protección a la Vejez) with the purpose of hearing out different groups of interests within the Colombian population. The objective is the implementation of a new pension bill seeking to improve the coverage and equity in the Colombian pension system.
As part of the bill's incentives to help families and individuals to prepare financially, the government is currently evaluating the possibility of subsidising pensions saving schemes.
This situation has also led the Colombian government to consider increasing the legal age (which is currently 57 years for women and 62 for men).
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