How to Protect Your Property — and Spare Your Family a Legal Nightmare-Costa Rica Estate Planning

You've done the hard work. You found the perfect piece of land in the mountains of Southern Costa Rica. You fell in love with the lifestyle — the cloud forest mornings, the quiet that only comes from real distance, the investment that just makes sense. You made it happen.

But here's a question most buyers don't think about until it's too late: What happens to all of this when you're gone?

If your property is held through a Costa Rican corporation — which is the most common structure for foreign buyers — the answer, without proper planning, is a slow, expensive, and very public legal process that your family will have to navigate without you.

There's a better way. It's called a stock trust (fideicomiso de acciones), and if you own property in Costa Rica, it's one of the most important things you can learn about.

Why a Will Usually Isn't the Answer in Costa Rica

In many countries, a will is the default tool for passing on assets. It feels responsible. Official. Done.

But in Costa Rica, a will doesn't bypass the probate process — it just provides guidance once you're already inside it. And once inside, the process is anything but simple.

Under the Civil Code of Costa Rica, when someone passes away, their assets must go through a formal legal proceeding before they transfer to heirs. The court gets involved. Appraisers, attorneys, judges, and government filings all become part of the picture. Here's where it gets expensive.

The real cost of probate in Costa Rica:

• Appraiser fees: 10% of the value of all assets — required to establish their worth before anything can be transferred

• Attorney's fees for legal proceedings: another 10%

• Property transfer taxes: approximately 4–5.5% of asset value

• Additional costs: travel, notary certifications, National Registry filings, and miscellaneous expenses

Add it up, and the total can easily reach 20 to 25% of the value of the estate. To put that in real numbers:

• A company holding $100,000 in assets could cost your heirs around $24,000 before they see a single dollar

• A company with $250,000 in assets could generate over $62,500 in costs — just to transfer what's already yours

And that's before factoring in time. This process can take years.

There's also the matter of who has to show up. If your heirs live outside Costa Rica, they may need to appear in person to accept the inheritance — or travel to a Costa Rican consulate in their city to grant power of attorney. If there are minor children involved, guardians must be appointed and paid from the estate. If both parents die without a designated guardian, children may temporarily be placed in state custody while the court appoints one.

These aren't hypothetical edge cases. They're the standard rules under Costa Rican law.

What About Your Existing Trust in the U.S. or Canada?

This is one of the most common questions we hear. Many clients already have a trust set up at home and assume they can simply include their Costa Rican assets in it.

It's a logical thought — but the reality is more complicated. A trust established outside Costa Rica has no legal enforceability within the country. That means:

• Transfer taxes remain mandatory regardless of your foreign trust

• Any inheritance received by a U.S. or Canadian citizen may still trigger capital gains taxes on the assets

• Documents generated in Costa Rica require official translation and an apostille to be used abroad — and vice versa

• Some provisions in foreign trusts may not be recognized under Costa Rican law or may require government oversight

The cleanest, most legally secure solution is to keep your Costa Rican assets within a Costa Rican trust structure. No jurisdictional conflicts. No parallel proceedings. No surprise tax exposure.

So What Is a Stock Trust — and How Does It Work?

A stock trust places the shares of your Costa Rican company — not the physical assets — into the custody of a licensed trustee, along with a private set of instructions for how those shares should be managed if something happens to you.

The company continues to operate exactly as it always has. You retain full control. You make decisions, manage the property, and live your life. The trust simply sits quietly in the background, holding the shares and your wishes — ready to act if and when it's needed.

No court involvement. No public record. No delay.

Here's how the process works, in four steps:

1. Partners' meeting. You and any co-owners formally decide to place the company's shares in a trust. Your attorney helps you draft a clear list of instructions for the trustee: who takes control, under what circumstances, and how they should proceed.

2. Trustee acceptance. The trustee reviews and approves the instructions. The company's assets remain with the company — nothing changes in how the business operates or who represents it.

3. Updates as life changes. If your circumstances change — a new beneficiary, a changed relationship, an updated plan — you simply hold an Extraordinary Partners' Meeting and add an addendum to the trust agreement. No need to start over.

4. You stay in control. At any point, you can ask the trustee to return the shares, effectively terminating the trust. The process is entirely reversible.

Why This Is Better Than a Will

The stock trust model solves every major problem that probate creates:

Confidentiality. The entire process is private, protected by professional confidentiality under Costa Rican law. It never enters the public record.

Dramatically lower costs. Fees are fixed — not calculated as a percentage of asset value. Whether your estate is worth $100,000 or $1,000,000, the cost is the same.

No court involvement. The transaction doesn't need to be registered with the National Registry. There's no judge, no appraiser, no waiting for a legal calendar to open up.

Business continuity. Your company keeps running. Whoever you've designated steps in smoothly, with the authority to make decisions, sell assets, or maintain operations — from day one.

Full autonomy. Until the trust is triggered, you remain completely in charge. The Shareholders' Meeting still governs all major decisions, including mortgages or sales.

Real peace of mind. In life's hardest moments, the last thing your family should have to worry about is lawyers, judges, and bureaucratic proceedings in a foreign country. A stock trust means they don't have to.

The Cost — And Why It's Worth It

Chirripó Properties has connected our clients with Montenegro Abogados and E&T Escrow & Trust Solutions — a team with more than twenty years of experience in corporate and estate law in Costa Rica, backed by one of the most reputable trust companies in the country.

The process has two components:

Legal setup (Montenegro Abogados):

• One-time fee of US$850 through October 2026

• Fee increases to US$1,100 starting November 2026

• Includes the intake form, trust agreement drafting, the partners' meeting to transfer shares, and all legal advice

Annual trust administration (E&T Escrow & Trust Solutions):

• US$250 per year for custody, administration, and responsibility for the shares

When you compare this to the $24,000–$62,500+ that probate could cost your family — not counting years of waiting and stress — a stock trust is one of the most straightforward financial decisions you can make as a property owner in Costa Rica.

Is This Right for You?

If you own property in Costa Rica through a corporation and haven't set up a clear succession plan, this deserves your attention. It doesn't need to be complicated or overwhelming. The process is simple, the cost is low, and it's far easier to set up now — while everything is calm — than to leave unresolved.

We're happy to connect you directly with Montenegro Abogados to learn more, ask questions, and get started. Just reach out, and we'll make the introduction.

This article is provided for informational purposes only and does not constitute legal or financial advice. We recommend consulting a licensed Costa Rican attorney for guidance specific to your situation.