Belize
Morgan & Morgan Trust Services (Belize) Ltd.
35 A Regent Street
Jasmine Court, Suite 101
P.O. Box 1777, Belize City, Belize
Tel.: 501.227.6687 / 227.6688
Fax: 501.227.6689
belize@morimor.com
Trusts in Belize are governed by the Trust Act, Chapter 202 of the Laws of Belize, with substantial amendments in regards to International Trusts introduced by the latest Belize Trust (Amendment) Act 2007.
The one principle of the Trust lies in the separation of the legal little (ownership) of the asset from the benefits derived from that asset. The control over the asset (right to dispose with) is also separated from the benefit derived from that asset. Trusts are a form of transfer, usually gratuitous, either inter vivos (from the Latin: “between the living”), or testamentary if created by will. People can make gifts without using a trust, but in many situations trusts provide important advantages, such as: avoidance of probate; provide property management for those who cannot, ought nor or wish not to manage for themselves; provide for the limited and successive enjoyment of property over several generations; the saving of taxes; and the insulation of the trust property from claims of the beneficiaries´ creditors. Because of these specific characteristic trusts are widely used for asset protection and estate planning.
Belize International Trusts are expressly exempted by the law from all income and corporate taxation. No estate, inheritance, succession or gift tax, nor any stamp duty is applicable to Belize international Trusts either. As such a Trust can clearly be a tax free instrument for wealth presentation and accumulation. However the beneficiaries of a trust should be aware that any income or benefit they receive from a trust (even an international exempt trust) may still be taxable “in their hands”, at receipt of such income. In this respect, professional tax advice should be sought at home by any individual receiving income form a trust.
Qualification for a Belize International Trust (Offshore Trust)
° The Settlor is not resident in Belize;
° None of the beneficiaries are resident in Belize;
° The trust property does not include any land situated in Belize;
° The law of Belize is selected as the proper law of the trust; and
° In case of purpose trust, the purpose or object of the trust is to be pursued outside of Belize.
International Trusts must be in writing, properly filed & registered with the Register of International Trusts in Belize. The following information is registered & maintained by the Belize Registrar of International Trust in respect to every International Trust:
° Name of Trust;
° Date of Settlement of the Trust;
° Date of Registration of the Trust;
° Name of the Trustee;
° Name of the protector (if any);
° Name and address of the trust agent.
The Registry does not require the Trust Deed itself to be filed neither does it requires to reveal any details whatsoever about the settlors and beneficiaries of the trust, nor any information about the trust assets.
An International Trust is registered in Belize by means of the Trust Agent filing a specific application form and affidavit, following which the International Trust is issued with a numbered certificate of registration.
The official registration basically provides an additional assurance of the enforceability and integrity of the International Trust.
There is no minimum period of time for which the Trust must be established before it cannot be attached. Immediate protection is available against the so called “proceedings for fraudulent conveyances”. Such protection is immediate and while it can be set aside for duress, fraud, mistake, endue, influence, misrepresentation or incapacity of the settlor, it cannot be set aside even if made for the avoidance of claims by spouses, heirs and creditors.
