Not many people know this, but Belize has the most secure asset protection trust jurisdiction on earth today. There are many reasons why.

First, due to a much-hidden loophole in Belize trust regulations, a transfer of assets to a trust, even if later deemed fraudulent by a court of law in Belize, cannot be set aside., as long as it occurred at least one year before or more. So, if you are married and you have offshore assets and transfer them to your Belize trust and wait for a year and your wife files for divorce and says you defrauded her… There is nothing she can do about it. Yes, absolutely nothing. Often, courts in other jurisdictions declare transactions fraudulent to help spouses avoid trust laws. This can't happen in Belize, even if the judge is totally sympathetic. Horrible, isn't it? Of course, we would never suggest such a thing, but the law is the law, and facts are facts.

If that wasn’t enough, Belize does not recognize foreign judgments, so whatever the court in your country says… Well, Belize couldn't care less. In fact, before even thinking to bring action against a trust, you have to post a high-security bid to start the case and if the trust was established one year before the court will reject the claim automatically.

And, last but not least, Belizean trusts pay no taxes of any kind, has no forced heirship laws, and is the most rock-solid asset protection in the world. The only comparable jurisdiction is St. Kitts and Nevis.

Now, you understand why we love Belize so much? You can secure the future of your generations to come with a trust in Belize.

Trusts are perhaps one of the most widely used asset protection structures in the world. They are established when a person who owns certain assets transfers them to a trustee. With this operation, the original owner no longer has financial or legal responsibility for the assets. Instead, it is the trustee who is responsible for managing the assets. The beneficiaries of the trust are third parties, groups, or individuals, who will receive dividends.

Although it is possible to establish an international trust in several global destinations, Belize is of special interest because its laws provide better protection for the assets deposited under this figure. An international trust established in Belize can be an effective way to protect your assets from confiscation. In the unlikely event of an asset freeze or bankruptcy filing, your assets deposited in the fund do not qualify for forfeiture because you do not specifically own them. In other words, these assets cannot be confiscated. This aspect can provide peace of mind for those who are vulnerable to lawsuits, live under authoritarian regimes, or are in the midst of other legal disputes.

By creating an international trust in Belize, you can establish in detail, according to your intentions, who will inherit your assets in the coming years. Also, you can earmark certain assets for specific occasions or individuals, all of which can be kept private and confidential.

At the same time, it is vital to note that the establishment of an international trust provides an additional tax benefit and even more so when such a trust is created in Belize. By reducing tax erosion, you can secure more of your assets, acquired through years of hard work, and ensure that your loved ones have access to as much of your wealth as possible.

Belize International Trusts provide a relatively low cost and very flexible solution for a trust client. In addition to their other features, Belize International Trusts offer particularly strong asset protection possibilities as well as wide-ranging freedom in the choice of a trustee. In particular, it should be noted that Belize International Trusts do not require a local Belize trustee. This, of course, allows any company or individual to act as the trustee (including sole trustee) of a Belize International Trust.

Legal Environment

The following laws establish the modern frame of Belizean trust:

·        The Belize Trusts Act of 2000;

·        The Belize Trust (Amendment) Act, 2007; and

·        The Belize International Trusts Regulations, 2007.

The first of these laws established trusts in Belize. The second replaced sections 64 and 65 of the 2000 law to create the environment for the current International Trusts regime. Section 65B (5) sets out the requirement that whenever the terms of a trust, which have been registered, are varied, the trustee or the trust agent must advise the Registrar (and pay the prescribed fee). Section 65B (7) states that an international trust which is not duly registered "shall be invalid and unenforceable."

The Belize International Trusts Regulations, 2007, sets out the operational environment for Belize International Trusts. This document contains four sections:

1.    The Application for the Registration of an International Trust;

2.    Applicable Government Fees;

3.    Form of the Certificate of registration of a Trust; and

4.    Form of the Trust Agent's Affidavit that must accompany the request to register an International Trust.

Registration of Trusts

As described above, it is a mandatory requirement to register a Belize International Trust. The requirement is not related to any external factors. If the trust is not registered, it is "invalid and unenforceable." The details required to be provided by the trust agent on registration are:

1.    Name of the trust.

2.    Date of settlement of the trust.

3.    Date of registration of the trust.

4.    Name(s) of the trustee(s).

5.    Name of the protector (if any).

6.    Name and address of the trust agent.

7.    Any other information as may from time to time be specified by Regulations. (This catch-all phrase is included for legal purposes, of course. No additional information is currently required or anticipated to be required in the future.)

Taxes

Belize trusts have no taxation liability in Belize. In fact, they don't need to file any returns, financial reports or records, if:

1)    The settlor and the beneficiaries aren't Belizean residents.

2)    The trust property doesn't include land situated in Belize.

The trust assets aren't considered property of the settlor, so all profits and capital revenues the trust earns would be taxable in a regular company. But Belize isn't a regular country. They are expressly exempted from corporate and income taxation. You mustn't pay estate, inheritance, succession, gift taxes, or stamp duties. Trusts are an entirely tax-free structure in Belize for wealth preservation and asset protection. If beneficiaries of a trust receive income or benefits from it, they may still be taxable, but the above-mentioned advice can help them avoid those issues.

Settlement of Trusts and privacy features

Trusts are settled through the creation of a Deed of Settlement. Nevertheless, it is a sound counsel to limit the deed to simply refer to the settlement of certain assets upon trust, without the requirement to state by whom such assets have been settled. Another alternative is to follow the conventional model of a Deed, but have a Belize IBC, or a similar structure, such as an LLC, which preserves confidentiality, to have ownership of the assets to be settled upon trust and then have that company be the settlor.

In any event, the identity of  the settlor or the beneficiaries of a Belize International Trust don't need to be included in the information registered. Moreover, section 65C (1) of the Belize Trust (Amendment) Act 2007 states that:

"The Register (of Trusts) shall not be open for public inspection except that the trustee or the trust agent of a trust may in writing authorise a person to inspect the entry of that trust on the Register."

So, even if there is a requirement to register a Belize International Trust, the registration is not open for inspection without the express written authority of the trustee or the trust agent. This offers yet another level of protection for the confidentiality of the trust and its associated details.

Trustee

Section 17(1) of the Belize Trust Act states that "Any person who has under the law of Belize the capacity to own and transfer property may be the trustee of a trust." This is a very general statement and means that virtually any adult natural person and not mentally incompetent, or virtually any limited company, could act as the trustee of a Belize International Trust. There is no requirement for a Belize-based trustee. 

Nevertheless, for greater certainty of proper law, especially should the trust come before a foreign court, many clients choose to have a Belize licensed trustee act at least as co-trustee of a Belize International Trust.

Notwithstanding the ability of a Belize IBC to act as trustee, it cannot be in the business of acting as a trustee without a license to do so from the Belize International Financial Services Commission (IFSC). Here, there can be a somewhat gray area. Nevertheless, we can suggest the following if an IBC is to act as a trustee:

·       It should act as trustee of only a single trust or of a small number of closely and unquestionably interrelated trusts (e.g., trusts for various members of the same family, such as when several 'parallel' trusts are established for each of the children in the same family).

·       Should not accept remuneration for the duties of acting as trustee. However, any costs incurred in the process of acting as a trustee could be covered. That is a Belize IBC trustee should not be seen as being in the business of being a trustee for profit.

·       Naturally, when using a limited company from any jurisdiction as a trustee, particular care should be taken if that company's jurisdiction of incorporation might require it in any circumstances to have a license or other formal legal consent if it acts as a trustee.

·       As always, consistent with the basic principles of Common Law Trusts, where possible, the trustee should not be a beneficiary of the trust or the settlor (or in the case of a corporate trustee, it should not be a controlled by a beneficiary or the settlor). Even if the law allows it, our experts recommend not to do so.

·       Since the role of the protector is to 'oversee' the actions of the trustee, that person (whether natural or corporate) should be separate from the trustee, even if the law allows it. The one thing that should be avoided is to make the same person the trustee and the protector, since the protector exercises powers by which, in some sense, he supervises the actions of the trustee.

·       Although the settlor may be one of the beneficiaries of the trust, he should not be the sole beneficiary.

Protector

Not all offshore trusts use a protector, and there is certainly no requirement to use one. However, the use of a protector is common, especially where a discretionary trust is used, which is necessary for many circumstances to take advantage of the tax-saving and asset protection possibilities of a trust.

The typical protector is a trusted lawyer, a sibling, or a friend who understands the wishes of the settlor and will do their best to see them fulfilled, but the settlor does not wish to burden that person with the many duties of a trustee. A protector should never have any beneficial stake in the trust, either directly or indirectly, as this creates an implicit conflict of interests.

The protector can be given any powers that the settlor wishes. Nevertheless, the two that they generally receive are the power to change trustees and the power to approve all distributions from the trust (usually over a certain relatively small amount, so as not to complicate payments and disbursements for necessary services).

Together, these two powers give the protector significant power over the trustee, both to make sure that the trust fund is distributed as the settlor would wish and that it is distributed according to the time scale that the settlor might reasonably wish. Other powers can be given to the protector as well, depending on the wishes of the settlor.

Fees

·       Government Registration Fee: $100. (All Belize trusts must be registered; the Registry is not public.) 

·       Annual Fees (we will tell you the prices when you contact us as they are tailor-made:

o   Annual Agent Fee

o   Trustee Fee

·       Filing of amendments to the Registered Trust Deed: $100

·       Replacement Certificate of Registration of the Trust Deed: $75

What can we do for you?

In Mundo, we are committed to your freedom. And Belizean international trusts are one of the best asset protection structures available on the whole planet. As you read it.

We couldn't say we offer the best financial services for family offices and high net worth individuals if we didn't offer the Belizean trust. But guess what? We do.

For a comprehensive package, our experts in Belize will include:

·       Filling all forms and submit all necessary documents for registering a trust

·       Creating a standard trust deed or a special trust deed including a final review of the deed

·       Trustee acceptance fee

·       First year's agent fee

·       Registration of the trust

·       Acting as trustee

·       Tax advise for the trust

Contact us right now and protect your wealth and your future with a Belize trust!