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Trusts
- The Trusts Act of 1992
Following the implementation
of the Trusts Act of 1992, Belize has become the most sought after
tax neutral jurisdiction for the establishment of its common law
Trust.
An asset protection Trust is considered an essential part of any
investment planning structure. A Trust is a fiduciary relationship
that is created between two or more parties with respect to the
proper placement and distribution of real property, assets and
funds. It is a basic arrangement whereby an entity manages property
or assets for the benefit of another with the underlying principle
being the clear separation of the legal ownership of the asset
from the beneficial ownership and use of the asset.
The person that creates the trust is known as the "Settlor"
or "Grantor". The person who manages the Trust is
known as the Trustee. The person or persons for whom the Trust
is being created are known as the Beneficiaries. A Protector
is a person appointed under the Trust Deed with whom the Trustees
can consult when administering the Trust. In certain cases,
the Trustees must seek consent from the Protector before carrying
out certain transactions related to the Trust. The Protector
can also be authorized to remove the Trustees and appoint new
ones.
The Trustee gives the Grantor an assurance that he will take responsibility
for the management and distribution of property and assets in
accordance with the Grantor's wishes which are duly recorded within
a Trust Deed. The Trust Deed is a written agreement which lists
the assets being placed into the trust and details the duties
of the Trustee. It also names the beneficiaries and specifies
the type of provisions being set in place for unforeseen events.
These can include topics unpleasant to think of but are never-the-less
important to cover. They can range from financial disasters to
excessive death duties, spendthrift family members, marital breakdowns,
family disagreements, business mismanagement, contingent creditors
or even to political upheaval.
An Asset Protection Trust is aptly named because it provides you
with the opportunity to change your financial affairs to reflect
your future needs. You also achieve substantial protection through
the diversification and gifting of your assets into a Trust. There
they become unavailable and completely out of the reach of illegitimate
creditors, predators or persons in your resident domicile who
may sue and win a judgment against you. You are also safe from
judgments levied by US or worldwide courts who may want to freeze
or encumber your assets while there is a pending lawsuit and before
any judgment is rendered.
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Trusts
can be established either by oral declaration or by written
instrument. Although there are no mandatory requirements
for the written registration of a trust created under
Belize law, the advantages that registration brings would
include acknowledgement by the trustees that they have
been legally bound to the Trust. Registration secures
the trust documents in the Supreme Court Registry of Belize,
thus providing legal recognizance and acceptance of the
Trust’ existence. The Register of Trusts is not
open to inspection without the written consent of the
trustee. |
A Belize Trust and an offshore company
(a Belize IBC, Panama IBC or Nevis LLC, etc.) can be structured
so that the assets of the Trust are held by the offshore company
which in turn has its shares issued to and owned by the Trust.
With this type of structuring, these two entities become most
beneficial for estate planning and particularly useful for the
avoidance of inheritance taxes, income and capital gains taxes,
forced heirship provisions and probate procedures. This can result
in very substantial tax and non-tax related advantages which accrues
during the lifetime of the Grantor and ultimately provides continuity
for the beneficiaries of the Trust as well as a double layer of
privacy and long-term asset protection.
Georgetown Trust, Ltd. is licensed to facilitate trust formations,
management of offshore trusts and the provision of trustee services.
For acting as the trustee of a settlement, we charge an annual
fee of US$950 which covers all normal administration services
carried out on behalf of the Trust. For the preparation of the
Trust Deed and trust formation, there is a one-time fee of US$1,500.
Georgetown Trust, Ltd. reserves the right to negotiate its fees
for Trusts with assets in excess of US$1 million to suitably reflect
the responsibility associated with the administration of the Trust.
Georgetown Trust, Ltd. also offers several forms of Trust Documentation
- The Standard Discretionary Trust and the Charitable Discretionary
Trust. As well, Belize law further provides for the creation of
Spendthrift Trusts or Protective Trusts. The Standard Discretionary
Trust has a maximum life of 120 years. Charitable Discretionary
trusts may be established with unlimited duration. For facilitating
the transfer of trusts from another jurisdiction or for making
appropriate amendments to standard trust deeds, our charges are
reflected on an individualized basis.
Order
a Trust |
