An international trust is registered under the Trusts Act of Belize by a licensed trustee resident in Belize. To qualify as an international trust, the beneficiaries must at all times be "non-resident" in Belize as defined in Section 2 of the Trusts Act of Belize.
　

Trusts offer protection against potential creditors, financial or political instability and much more. 

　

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There is not a mandatory of a Trust in Belize; however, registration is possible with the General Registrar in accordance with Belize law. The application must be accompanied by -

 

·        A certified copy of the Trust Instrument;

·        A fee of BZ$200 (which is US$100).

 

On receiving the above, the Registrar enters into the Register of Trusts the name of the trust, the name of the settlor, the purpose of the trust, and issues a certificate of registration to the trustee.

 

That fee stated above is a one-time fee payable upon application for Registration.  It is not an annual fee.

Exemption from Taxation

A trust has no taxation liability in Belize and no requirement to file any returns, reports, or records, provided that:

 

·        The settlor is not resident in Belize,

·        The beneficiaries are also not resident in Belize, and

·        The trust property does not include any land situated in Belize.

The Trusts Act alters the common law rules relating to:

 

·        the rule against accumulations;

·        the rule against perpetuities, removing the perpetuity period;

·        the rule against double possibilities;

·        the rules restricting the extent of charitable purposes;

·        the rules against purpose trusts.

The trust can provide for an express power of revocation otherwise it will be deemed to be irrevocable.

A trust shall not be declared invalid or a disposition declared void or affected in any way if the settlor retains or acquires:

 

·        a power of revocation of the trust;

·        a power of disposition over trust property;

·        a power to amend the trust deed;

·        any interest in the trust property.

A disinherited heir cannot challenge a trust on the basis that it interferes with his or her right to succeed to assets or property.

A trust can provide that an interest in property given to a beneficiary for life or a lesser period shall not be alienated or pass from the trust by bankruptcy or be taken in execution by process of law.

A trust is not void or voidable in the event of the settlor's bankruptcy, notwithstanding any law of the settlor's domicile or place of residence and notwithstanding that the trust is voluntary, without valuable consideration and made for the benefit of the settlor, the settlor’s spouse or children.

The Court (in Belize only) has the power to declare a trust invalid, but does not have the power to vary or set aside the trust where there is a claim by a creditor upon insolvency. This applies even in the face of legislation such as the Statute of Elizabeth and Reciprocal Enforcement of Judgments.

 

The result of the foregoing is that once a trust is settled under the laws of Belize, it is deemed not to be fraudulent.

A term of an trust expressly selecting the laws of Belize to govern the trust is valid, effective and conclusive regardless of any other circumstances.

Foreign judgments are not enforceable against a trust settled under the laws of Belize. Any claimant must commence new proceedings in Belize, subject to Belize law.

A trust governed by the laws of Belize or disposition of property held by the trust will not be void, voidable, liable to be set aside or defective by reason that the laws of any foreign jurisdiction prohibit or do not recognise the concept of a trust, or that the laws of the Belize are inconsistent with any foreign law.

Any proceedings to set aside the settlement of any trust or disposition to such trust must be commenced in the Supreme Court of Belize.

A trustee has a statutory right to delegate its powers and functions, such as management of trust property, including investment management, and to employ professionals to act in relation to the affairs of the trust.

A Custodian trustee may be appointed to hold trust property and an Advisory trustee to advise the trustee in relation to the trust property.

The Belize government guarantees that there will be no compulsory acquisition or expropriation of trust property except in accordance with due process of law.

For practical purposes the formation of an offshore holding company underneath a trust structure offers an excellent  vehicle for administering trust assets.  For some clients a privately owned trustee company may have advantages.

We operate on a “know your client “ basis and the appropriate Trust Order and Checklist must be completed in order to commence the process. There may be additional requirements for opening bank accounts. Costs in Belize are competitive with the quality offshore jurisdictions.