Wills

Living Trust in Colombia

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Why Should I have a Living Trust in Colombia? Most importantly the assets placed into a Colombian trust cannot be forced into liquidation in divorces, taxes, or law suits. Trusts also represent an excellent way to reduce taxes for inheritance passed to children or your spouse.  A Living Trust in Colombia is used to protect your home, property, bank accounts, shares in a Colombian company, business establishment, vehicles, pets, jewelry, valuables, and other assets.

Colombia Legal Alert: Couples enter into a common law marriage in just 2 years! Spouses can have rights to percentages as high as 50% on property purchases or profits from rentals and sales which happen during a relationship.trust estate planning in colomiba

living trust (Fideicomiso Civil in Spanish) is a legal document created by a licensed attorney in Colombia through which your assets are placed into a trust for your benefit during your lifetime, and then transferred to designated beneficiaries at your death or if you become incapacitated. An administrator (trustee) may take control of the assets upon your death, or the beneficiary may also directly receive assets upon death. When children are involved its best to have an administrator oversee the trust for a set period. Once the Living Trust is signed, you transfer ownership of your assets into the trust and you remain in complete control of your property. The trust property can be managed and distributed without going through the probate court.

What is a living trust and how is it different from a last will and testament?
1. Avoid Probate, and Inheritance Taxes - It's a smart way to avoid probate. Keep more money in the family by avoiding potentially lengthy and expensive court proceedings. A will and testament in Colombia is important to keep your wishes clear to cover any items which are not in a trust, such as miscellaneous personal items.

2. Estate Planning - A plan for your family’s future - You set conditions now on how property or money maybe used if something happens to you. Excellent to force financial management of assets for the family if you die, become incapacitated or unable to sign documents. Minors futures are protected. A popular condition for  a trust is to block property sales until a child finishes high school or college. Trusts may also be setup to protect mentally dependent adults. The bottom line is that your family is protected from lengthy and costly processes.

3. Protects Family Assets - Your affairs get handled if you're incapacitated. Avoid going to court by appointing a trustee to take charge of your finances according to your instructions. While you are a live and mentally Capable you maintain complete control of the trust.

Can I transfer property into and out of the trust while I'm alive? Yes. If you have an individual trust, you can transfer property whenever you want. If you have a shared trust, you'll need your co-trustee's consent if you own the property together.

Do I still need a will in Colombia if I have a living trust? Yes, because you may not have transferred your property into your trust before you pass away. It transfers property still in your name alone when you pass away to the trust to be distributed to your beneficiaries. It also lets you name guardians for your minor children. Click here for more information on a will in Colombia.

Aren't living trusts just for the wealthy? Not at all. People of all income levels can set one up to manage their finances in case they become disabled, or to provide for loved ones without going through probate court, which may be required of relatively modest estates.

Keywords for a Living Trust in Colombia:
Living trust is = Fidicomiso Civil or “entre vivos” in Spanish
Traspaso de bienes entre vivos = Transfer of assets between live persons

Time to implement Living Trust:
3 Days to 1 week to prepare and register the living trust.
* Property Title Registration which are moved to the trust usually take about 3 weeks.

Legal Fees:
From $1,500,000 Pesos & Up (500 USD)

Notary Fees:
From $250,000 Pesos & Up (85 USD)

Let us know what you would like in your trust and we can give you an exact quote.

Estate planning in Colombia: A LIVING TRUST is a vital part to legal estate planning which can be complemented by tax planning, a will, and a special power of attorneys for items such as financial, medical, travel, an real estate transactions.

With an estate planning consultation we will help you answer and analyze your concerns so we can prepare the best plan for your specific needs. At COLOMBIA LEGAL & ACCOUNTING we have the expertise to put together the most beneficial estate plan, based upon your desires and expectations. Contact us to today to take the next step toward securing your family’s future.

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Lawsuits

Colombian Labor Contracts

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If you are a foreigner living in Colombia it wont be very long before you realize that labor law here are much different than in many other countries (for example, the U.S.)  Most foreigners aresuprised to find that even simple jobs such as maids have rights to liquidation payments. It is your responsibility as an employeer to make sure health & workers insurance, pension, uniforms andtransportation are all paid for or you face substantial  monetary penalties/fines. The labor ministry and court system generally favor employees when there is a lack of written documentation so it is critical that you follow domestic labor laws and have a signed contract with an employee. Liquidation payments are required by law and range from 20% to 50% of the employees salary depending on various factors

Running a company in Colombia requires that you are familiar with the various types of Colombian labor contracts you may enter into in order to avoid a costly situation when employees exit or terminate their relationship with you. Some employees will take advantage of those who are not familiar with labor laws in Colombia (often Americans or other foreigners). For example, an independent worker will agree to a higher hourly rate in exchange for not paying their benefits, but upon termination will claim they are also entitled to back pay for benefits.

Our legal staff can assist you with drafting a contract which provides you with the necessary legal protection, combined with professional payroll services.
Types of Colombian Labor Contracts:
1. Project Specific (construction, professional services)
2. Replacement of Personnel (replacement of employee out on maternity sick leave)
3. Seasonal Job (high season employment)
4. Traditional fixed term full-time employment
5. Traditional part-time employment
6. Independent Contractor (a professional who can work independently)
 
Related Legal Services Offered by Colombia Legal & Accounting SAS:
1. Labor Court Disputes
2. Labor liquidation negotiations
3. Human resource services
4. WORKERS RIGHTS Workers rights
5. Work visas for foreigners
6. Certified labor cost projections

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Customs

Customs – Import / Export

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At Colombia Legal & Accounting SAS

Has an experienced team which has extensive experience with Colombian customs law. Specifically, we can assist you in obtaining the necessary certifications and documentation required to import and export goods or services.

This may include modifications to business license certificates, complicated international commerce certifications from government authorities (such as the DIAN), and Colombian Customs authority (Aduana).

The pitfalls of importing, exporting, transporting, and world trade generally are numerous and difficult to anticipate. Companies engaged in these activities frequently find themselves at the mercy of an inexperienced or corrupt Colombian government officials, and or dishonest businessman. COLOMBIA LEGAL & ACCOUNTING S.A. is experienced in creating Colombian corporations with the appropriate certifications necessary to conduct international trade and transport. Our Customs attorneys have the expertise to assist you in establishing a business presence in Colombia.  We specialize in assisting foreigners and foreign entities setting up corporations in Colombia.

While general business concepts are similar to those in many other countries, including the U.S., there are some very important differences in Colombian law - so it is critical to work with an experienced legal & accounting firm which can assist in implementing your business plan successfully.

It is important to seek professional assistance in order to comply with anti money laundering laws when conducting large international monetary transactions in Colombia. Additionally, our tributary financial advisors and accountants will be sure to analyze all taxes, tarriffs and international trade agreements which you may benefit from.

Additionally, COLOMBIAN & ACCOUNTING S.A.S sas can assist in drafting a complete international trade and commerce report as well as the accompanying Colombian regulatory practices.

When problems arise there is no substitute for a Customs attorney experienced and knowledgeable in both the law and your industry’s practices. We seek win-win solutions, and stand ready to promptly seek  At the same time, we will exhaust all reasonable settlement avenues before encouraging litigation.

Customs - Import / Export - Medellin Lawyer

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