Ecuador Wills & Using LLCs

Apr 27th, 2010 by Gary

We’ll learn about shamanic mingas in a moment but first let’s look at using wills, LLCs and IBCs in Ecuador

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An Ecuador Living subscriber sent this note: Hi Merri. Hope you and Gary are well. We’re working with Analinda at El Encanto and also our friend to set up some properties in Ecuador. One we will live in and the other will be a rental unit. We have heard that you should not buy property in Ecuador in your own name but through an LLC, maybe at one of your seminars. We are looking into a US based LLC to house a traditional IRA for the rental property. We would have liked to have gone offshore with this but are hearing that would trigger a prohibited transaction and be subject to US tax. We are considering putting the other LLC in Nevis with a bank in Belize from which to buy our home and conduct daily business. Do you know someone who could help in these areas? We will also need a real good attorney in the Cotacachi area.

Thanks for all you guys do. We have enjoyed every minute of our tours and have you to thank for opening up the world to us.

My reply may be helpful to you… if you are considering buying Ecuador real estate.

US wills will work in Ecuador but not if they are disputed and violate Ecuador law. There are two points of view. Using an LLC or any type of corporation becomes complicated because you have to do a lot to make it work in Ecuador. Buying in your own name is much easier in the beginning… but the will could create problems later.

If you use a corporation… a Panama corporation is good as it is in English and Spanish which avoids translation.

Before you do this though, contact an Ecuador attorney.

Because this reader was an Ecuador Living subscriber we used our legal service and referred him to our Ecuador real estate attorney who wrote: Wills granted in the US or any other country out of Ecuador are perfectly valid here if there is evidence the the will was granted with the legal solemnities of the country in which it was granted and also if there is proof of the document being authentic. You can also grant wills here following the regulations stipulated by Ecuadorian civil law on this matter.

As for buying a piece of property, I recommend that you just buy it on your own name, unless you plan on starting a big business which will make it necessary to have a company involved. Then I agree with Gary´s recommendation to create the company in Panama, for instance.

There are many ways to take title to real estate in Ecuador. Your own name is easiest… but the final decision should be made based on your complete set of circumstances taking times, cost and your estate planning into account. We always recommend having an independent Ecuador attorney review your purchase and your legal status before you buy.

Gary

Minga means circle and our Ecuador shamanic mingas have taken delegates to many types of circles and ceremonies like…

this ancient Incan observatory at Ingapirka and…

with the Shamana of Peguche.

Here is one of our mingas in…

a sacred valley near Cotacachi.

Ecuador shamans perform many ceremonies. On most of our Ecuadorian Shamanic Minga Tours we end with a “Ceremony of Thanks”at a remote part of Quicocha Crater Lake, accessible only by water.

Here we are waiting to board our launch.

20070329a Ecuador Wills & Using LLCs