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.

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.

MEMBER


MEMBER

belizeisfun.com

Caye International Bank Ltd

MEMBER