Belize is quickly emerging as one of the best locales in which to conduct offshore operations, including creating trusts to protect wealth and assets and eventually pass them along to beneficiaries. The country offers both privacy and flexibility when it comes to trust creation.
In order to create offshore trusts in Belize, you cannot reside in Belize, and neither can the beneficiaries. In addition, your trusts cannot contain land in Belize. In cases of purpose trusts, the purpose or object cannot be in Belize. Other than that, you have a lot of latitude to create and administer your trust as you see fit, even naming yourself as trustee or beneficiary.
Belize trusts are exempt from taxation, including income, business, estate, inheritance, and gift taxes, and instruments related to the trust or trust property are exempt from stamp duty.
Although trusts created in Belize must be registered with the Belize Registry so that settlors can receive a Certificate of Formation, the confidentiality of trusts registered in Belize is protected by the Belize Trusts Act. For this reason, the Registrar of International Trusts retains only the name of the trustee, and has no information on settlors, beneficiaries, or assets held in trust.
Unlike some other countries, Belize also offers immediate protection from proceedings for fraudulent conveyances or transfers and does not recognize or uphold the reciprocal enforcement of judgments, so that claimants attempting to act on a judgment from another jurisdiction would have to file a new suit in Belize if a Belize trust is involved.
The cost to set up a trust in Belize is $2,000, with annual fees of $1,000, and the process can be completed in 10-12 business days.
Submitted by Sam Hall of Harbor Financial Services
