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Belize Trusts

The principal benefit of a Belize Trust is that it allows legal ownership of property to be separated from the right to use and enjoy that property.

Belize trusts are formed under the Belize trusts act (2000).  They can be set up quickly and with a minimum of fuss.

Correctly set-up Belize trusts cannot be pierced by foreign court orders due to bankruptcy or divorce or otherwise discounted by claims from creditors in another jurisdiction.

Trusts can be drawn up with severability, and engineered so that different aspects of the trust can be governed by laws of different jurisdictions.

Formation

• The Settlor may also be the trustee or protector of the trust.
• Only one trustee is required with a maximum of four (charitable trusts are an exception). The trustee may also be a settlor or beneficiary. Trustees are entitled to be paid fees for oversight of the trust. Corporate trustees can also gree a remuneration package with the settlor or protector.
• Trustees are personally liable for losses relating to a breach of trust. However, in the case of a corporate trustee the directors are not personally liable
• Trusts may provide for a protector. This person may also be a settler trustee or beneficiary. He owes a fiduciary duty to the beneficiaries or purpose of the trust but is not considered a trustee.
• Spendthrift trusts are allowed, and the settlor may also be a beneficiary.
• Both settlors and beneficiaries may give trustees letters of wishes as guidance, although these do not constitute a fiduciary duty.
• Charitable trusts may be created for a number of purposes, and may be regarded as charitable regardless of the physical location or citizenship of beneficiaries.
• Non charitable trusts last a maximum 120 years. Charitable trusts an unlimited period.

Asset Protection

• Foreign court orders against Belize Trusts are not recognized with respect to marriage/divorce, inheritance, and trusts cannot be discounted by claims from creditors.
• The trusts can only be breached if you have committed what is judged a real crime in Belize.
• Belize Trusts are extremely flexible and can be personalized to include clauses such as automatic successor provisions.

Tax

Provided that the settlor is not resident in Belize during a tax year, that none of the beneficiaries are resident in Belize during that year, and that the trust property does not include any land situated in Belize, exemptions include:

• the income of the trust for that year from all provisions of the Income Tax Act;
• no estate, inheritance, succession or gift tax or duty is payable with respect to the trust property by reason of any death occurring during that year; and
• no stamp duty is payable on all instruments executed in that year and relating to the trust property or to transactions carried out by the trustee on behalf of the trust.

Privacy

• Trust registration is optional. Either the settler or trustee may register the trust. The register itself may not be inspected without express written permission from the trustee.