OFFSHORE TRUST IN BELIZE
TRUST INCORPORATION SERVICES
A Trust is one of the most flexible existing financial mechanisms, able to handle almost any purpose.
Its concept is based on the separation of legal ownership of the Trust assets (which rests with the Trustees) from the beneficial ownership (which rests with the Beneficiaries).
It has been specially designed to achieve the best asset protection.
A Trust is a legal device that allows title to – and possession of – property (asset) to be held, used and/or managed by one person, the Trustee, for the benefit of another different person or, the Beneficiaries.
EXAMPLES FOR USING A TRUST
- It can avoid probate and inheritance taxes;
- Invest in all kinds of securities, real estate, cash, futures, bonds, stocks;
- Hold title of any real or personal property, business interests, insurance policies, home, boat, car;
- Pay support in marriage, to elderly, children, medical or educational expenses… etc.
MOST FREQUENT USES OF AN OFFSHORE TRUST
- To offer flexibility in the distribution of the client's assets following his or her death ;
- The Trust will avoid lengthy and complicated probate court procedures as well as inheritance taxes;
- A trust, specially if operative for several years is less probably to be legally challenged than a will, specially regarding the charge of mental incompetence so often used against will written late in life;
- To keep confidential the beneficial ownership of property or share stock (assets);
- To hold property (asset) for those who cannot hold it for themselves, e.g. minors or bankrupts, or simply for those who wish 100% anonymity degree;
- To minimize taxation by means of the client divesting himself of income or assets in favour of the Trustee, who may be located in low or no tax jurisdictions;
- To protect property and other assets from legal and political actions that may be taken against the client by transferring legal ownership to the Trustees (Asset Protection).
In these privacy aware jurisdictions such as Belize, there is no requirement to register the Trust with the government, and the terms of the Trust agreement and the Beneficiaries are protected against disclosure, they are not available in public records either.
The Trustees aren't allowed to disclose information about the Trust unless a local court order requires it. But in this can, you can appoint your own IBC as the Trustee, thus full controlling this feature.
PRIVACY OF THE SETTLOR
The main advantage of non public registration is that privacy of the Settlor, so the Trust's activities and the identity of the Beneficiaries are fully protected.
Since the Trust is a Belize Trust, it imposes no tax of any kind on the Settlor, the Beneficiaries or in the income or capital gains earned by the Trust.
Furthermore, there is no requirement for the Trustee to file Trust accounts with the local tax authority thus further preserving the confidentiality of the Trust's activities.
Depending upon the residence for tax purposes of the Settlor and the Beneficiaries, it is often possible to make distributions of capital or income from the Trust completely free of tax. In this matter, many reporting requirements are either eliminated or vested in the Trustees.
Our Trusts are specially designed Trusts that can effectively protect the Settlor's assets from attack by erstwhile creditors, thereby preserving the Settlor's assets for the enjoyment of the Settlor and his or her selected Beneficiaries.
The Trustee of a Belizean Trust can be any person that is of the legal age who under the laws of Belize has the capacity to own and transfer property can be a Trustee. A Belize IBC cannot be a Trustee of a Belize Trust.
The documents that are apart of the Trust are as follows;
One US Dollar to start the Trust
TRUST DEED
Deed of Transfer – When you transfer items to the trust or you purchase items in the name of the trust you must list them on a Deed of Transfer; also if you remove items from the Trust you must also list them on the Deed of Transfer and a copy of each must be sent to the Trustee.
Letter of Wishes – Since there is anyone named in the Third Schedule of the Trust Deed this is used to instruct the Trustee as to distribution of the Trust. You may submit Letters of Wishes any time you feel that it is necessary to make changes or submit a request.
Minutes of Meeting appointing the General Trust Manager
Power of Attorney to conduct the day to day of Trust
THE BENEFICIARIES PROTECTION
When incorporating a Trust in Belize, we do not include the Beneficiaries in the Trust Deed and you can state who you want to be the Beneficiaries at any time.
You simply submit it in the Letter of Wishes.
TRUST NAME
The name of a Trust in Belize is unrestricted
HOW TO MAXIMIZE A TRUST STRUCTURE
A Belize Trust and an offshore company (as an IBC in Belize, Seychelles or St. Vincent & The Grenadines) 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.
For any further questions or matter you may discuss with us, please do not hesitate to contact us with your relevant questions.
