Private client planning in Latin America from the perspective of international trust services companies
Ana Correa
Corvalier Trust, Miami
ana.correa@corvaliertrust.com
Report on a session at the 17th IBA/ABA US and Latin America Tax Practice Trends Conference in Miami
Wednesday 18 June 2025
Session Chairs
Mauricio Cano del Valle Brook & Cano, Coral Gables
Jennifer Migliori Duane Morris, Miami
Speakers
Tomás Alonso ZEDRA, Miami
Maria Cecilia Rachadell CISA LatAm, Miami
Lourdes Segovia Trident Trust, Miami
Enrique Travieso Corpag, Miami
Introduction
This panel explored the evolution of wealth structuring in Latin America, addressing how global transparency and regulation have reshaped the role of trustees, advisers and legal practitioners. The session was divided into two main themes: an overview of emerging trends and challenges, and a detailed discussion on modern structuring strategies, jurisdictions and trust alternatives. The panellists brought multidisciplinary insights from legal, compliance and fiduciary perspectives.
Panel discussion
Trends and challenges in structuring
Maria Cecilia Rachadell opened with a historical overview of structuring in Latin America, explaining that wealth planning was originally driven by objectives such as tax deferral and confidentiality. Over time, those objectives have evolved to focus on priorities such as asset protection, estate planning, US estate planning, pre-immigration strategies, family dynamics and planning for increased life expectancy. This marks a shift to transparent purpose-based structures. She emphasised the importance of long-term care, family governance and demographic trends such as ageing.
Rachadell noted that every case requires careful consideration, and that foundational principles are necessary to support more innovative approaches. She identified several best practices observed in successful structures:
- appointing an independent trustee to prevent conflicts of interest and reduce the risk of the trust being deemed a sham;
- selecting robust jurisdictions with legal certainty and institutional reliability;
- implementing discretionary distribution provisions to provide flexibility and minimise tax and control issues;
- ensuring proper valuation of assets to support transparency and defensibility; and
- establishing a dedicated team or mechanism to adapt the structure to changes in family needs or regulatory environments throughout the life of the trust.
Her position was complemented by Enrique Travieso, who discussed the impact of automatic information exchange regimes such as the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS). He offered real-world examples of information requests from tax authorities and advised clients to review structures annually to ensure alignment with evolving obligations. He warned that failure to do so can lead to audits, reputational damage or criminal exposure. Travieso stressed the importance of proactive transparency and of educating clients on their responsibilities, particularly under CRS.
In turn, Lourdes Segovia provided a trustee’s perspective, highlighting that compliance has become central to fiduciary operations. She described how trust companies are increasingly investing not only in systems and audits, but also in human capital – building teams with specialised legal, tax and regulatory expertise capable of managing complex cross-border requirements. Segovia emphasised that trustees must now manage both assets and reputational exposure, adapting internal procedures in response to evolving demands from regulators, financial institutions and families themselves. She also noted that the increasingly regulated environment has had a significant impact on offshore centres, prompting a shift in how fiduciaries define their value proposition. Beyond administrative efficiency, they are now expected to deliver strategic insight, anticipate regulatory developments and offer innovative structuring alternatives to better serve international families with diverse needs and global footprints.
Finally, Tomás Alonso addressed the operational and legal impact of transaction monitoring. He shared examples of delays in distributions and complications with financial institutions due to anti-money laundering (AML) protocols. Transaction monitoring has become a barrier to efficiency, requiring constant coordination. Tomás recommended maintaining solid documentation, internal procedures and clear communication. He also suggested having a short-term response plan to handle audits swiftly and effectively. Alonso highlighted the importance of jurisdiction selection in modern structuring. He emphasised that jurisdiction choice is not just about tax efficiency but about the broader legal, regulatory and operational ecosystem in which the structure will function. Comparing jurisdictions such as the US, Cayman Islands and Switzerland, Alonso noted the need to consider not only legal certainty and asset protection but also access to banking, investment management and administrative flexibility. For Latin American clients, trust visibility and alignment with global AML protocols have become essential for securing institutional cooperation.
Finally, he underscored that trust structuring today must be fluid and resilient, designed to withstand shifting tax policies, transparency initiatives and changes in the client’s life circumstances.
Zooming in on modern structuring
Jennifer Migliori encouraged professionals to move beyond standard planning templates and embrace tailored, purpose-driven structures. She stressed the need for structuring that considers not only legal and tax considerations but also family dynamics, long-term succession goals and cross-generational governance. She emphasised the importance of building in flexibility from the outset, including powers to amend, remove or add trustees, and create or dissolve sub-structures. Migliori also highlighted the value of planning for jurisdictional shifts and tax residency changes, noting the increasing mobility of Latin American families – particularly those relocating to Spain, where civil law, forced heirship and wealth tax rules differ from common law frameworks.
To meet these complexities, she referenced a suite of structuring tools tailored for various planning needs, including:
- segregated portfolio companies (SPCs) in the Cayman Islands for asset compartmentalisation;
- private trust companies (PTCs) for centralised family governance;
- limited liability partnerships (LLPs) in Canada for entrepreneurial families;
- VISTA trusts in the British Virgins Islands (BVI) for asset-holding with minimal interference; and
- directed trusts in US jurisdictions like South Dakota and Delaware that separate investment control from administrative duties.
These vehicles, she noted, allow for both enhanced control and strategic adaptability.
Travieso expanded on this view and spoke about the nuances between US and non-US structures, and the implications of grantor versus non-grantor trusts. He explained that grantor trusts, where the settlor retains certain powers or benefits, often lead to tax transparency in the US, while non-grantor trusts may be used for deferral or estate planning if properly structured. Travieso emphasised that the choice between these forms depends on the settlor’s current and expected tax residency, especially for clients considering immigration to the US or acquiring US assets.
He discussed how CRS classification, FATCA obligations and the need for accurate tax reporting impact these structures. Travieso noted that clients must consider not only the initial structuring but how the trust will evolve in light of potential life changes, such as children studying abroad or acquiring dual citizenship. He also highlighted the practical advantages of directed trusts in US jurisdictions, which allow for a separation of roles: with trustees focusing on administration while investment committees or family members can retain influence over asset management. This, he argued, helps balance regulatory compliance with the family’s desire for ongoing participation in wealth oversight.
Rachadell closed with a reflection on creative trust design. She reiterated the value of seeing structures as adaptable tools that evolve with the family and legal environment. She expanded on the concept of the trust as a ‘white canvas’, where the adviser and family collaboratively define the structure’s purpose, values and flexibility. She underscored the importance of including built-in tools for modification – such as trust protector powers, amendment clauses or migration mechanisms – that allow the structure to stay relevant amid changing tax laws and cross-border movement.
She also referenced alternative solutions such as the use of life insurance within US trusts to support long-term liquidity planning, particularly in jurisdictions with forced heirship. Rachadell shared examples of how Wyoming Foundations are being explored by Latin American families as vehicles that offer familiar civil law characteristics with US governance. Additionally, she noted the rising interest in fideicomisos under Mexican law, which may offer planning opportunities for families with assets or beneficiaries across Mexico and Central America. Her remarks reflected the importance of blending technical precision with creative foresight, enabling families to preserve their intent while meeting regulatory and generational demands.
Conclusion and final remarks
The panellists emphasised that modern wealth planning requires a forward-looking approach rooted in flexibility, transparency and cross-border coordination. Rather than relying on traditional tax-driven models, successful structuring today incorporates long-term vision, compliance integrity and personalised governance mechanisms. The growing complexity of client profiles – marked by geographic mobility, generational transitions and jurisdictional overlap – demands collaborative strategies that involve legal advisers, trustees, tax professionals and compliance officers working in tandem.
Several speakers reiterated the importance of maintaining structures that are not only legally robust but operationally functional and emotionally aligned with family goals. The shift toward purpose-driven planning was clear across all interventions, with strong emphasis on education, adaptability and proactive monitoring. Regulatory developments such as CRS, FATCA and increasingly strict AML protocols are no longer peripheral concerns – they are central pillars of structural design.
Mauricio Cano del Valle closed the session by highlighting the need for continuous innovation, inter-jurisdictional dialogue and a client-centric mindset to effectively serve Latin American families navigating the evolving global landscape.