PERU Trends and Developments Contributed by: German Carrera, Juliana Llosa, Yesica del Carpio and Moritz Abramovitz, CPB Abogados
e ) Trusts ( Fideicomisos ) Peruvian trusts have become increasingly important as succession planning tools that help protect assets, ensure business continuity and facilitate the orderly transfer of wealth across generations. Families are using trusts not only to preserve wealth, but also to establish governance mechanisms that reduce the risk of disputes among heirs. A common structure allows the settlor to transfer assets to the trust while retaining decision-making authority during his lifetime. Upon the settlor’s death or disability, a family committee may automatically assume responsibility for providing instructions to the trustee based on previously established guide - lines. This ensures continuity in asset management and avoids delays or conflicts often associated with inheritance proceedings. Trusts are also used to avoid the inefficiencies of frag - mented ownership. Instead of transferring indivisible assets to multiple heirs, families can place them in a trust and establish clear rules for management, distri - butions and succession, preserving unity of ownership and improving decision-making. From a tax perspective, contributions to revocable trusts are generally tax neutral in Peru, as the settlor is considered to retain effective control over the assets. Conversely, transfers to irrevocable trusts may trigger income tax consequences because they are generally treated as transfers to third parties. As a result, trusts are increasingly regarded not merely as asset-holding vehicles, but as strategic instruments for coordinating succession, governance, asset man - agement and long-term wealth preservation within a single framework. Foreign Tools The increasing internationalisation of Peruvian fami - lies has transformed the way wealth planning is approached. As family members relocate abroad, investments become geographically diversified and business interests span multiple jurisdictions, fami - lies are increasingly evaluating foreign structures that provide solutions beyond the traditional succession mechanisms available under Peruvian law.
Rather than focusing solely on the transfer of assets upon death, these structures seek to address broad - er objectives such as governance, asset protection, business continuity, intergenerational wealth transfer, philanthropic planning and the management of family assets across different legal systems. The foreign vehicles most frequently considered by internationally oriented Peruvian families are described below. i . Trusts Trusts are primarily used to facilitate the orderly trans - fer and long-term management of family wealth across generations. They allow families to establish govern - ance rules that continue to apply after the death or incapacity of the wealth creator, regulate how and when beneficiaries receive assets, provide continuity in the management of investments and help preserve family wealth over time. ii . Holding companies and family investment vehicles Holding structures are commonly used to centralise ownership of family assets, businesses and invest - ments located in different jurisdictions. Their princi - pal objective is to simplify ownership arrangements, facilitate decision-making, streamline future trans - fers among family members and provide an efficient framework for collective asset management. iii . Family partnerships and similar structures Family partnerships and comparable vehicles are often utilised where families wish to transfer economic inter - ests to younger generations while maintaining central - ised management and control. These structures can facilitate gradual succession processes, encourage family participation and provide a flexible framework for the long-term administration of family assets. iv . Private foundations Private foundations are generally considered by fami - lies seeking an institutional framework designed to preserve wealth over multiple generations. In addition to succession planning, they can be used to establish governance mechanisms, support family philanthrop - ic initiatives and provide continuity independent of the personal circumstances of individual family members.
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