Offshore Trust Services:

A trust is an equitable obligation, binding a person (who is called a trustee) to deal with property over which he has control (which is called the trust property), for the benefit of persons (who are called the beneficiaries), of whom he may himself be one, and any one of whom may enforce the obligation...  The control of the trustee, may, under the terms of a trust, be subject to fiduciary or personal powers vested in another person, who may sometimes be expressly designated a ‘protector’.”

Underhill and Hayton, Law of Trusts and Trustees, 15th edition.
The Belize Trust Act 1992 repeals the Trustee Act 1923, and is generally regarded as a combination of the best features of the trust legislation of other offshore jurisdictions such as Guernsey, Cayman Islands and Bermuda.  In fact, it is often said that the Belize Trust Act represents the high water-mark of offshore trust legislation the Western Hemisphere, or as some may argue, in the world.  This potent legislation is combined with a user-friendly regulatory framework establishing Belize as a highly attractive trust jurisdiction.  CSB offers trust and trustee services through our associated trust company, Compass Trust Corporation.

Benefits of Belize Offshore Trusts:

• Where the Settlor and Beneficiaries are non-resident and the trust property does not include any land in Belize, the trust is exempt from income tax, succession tax and stamp duty,

• All trusts other than unit trusts may be created by oral declaration or by instruments in writing,

• Settlor can, in the trust instrument, choose the governing law of the trust and may provide for several aspects of the trust to be governed by  different laws,

• No exchange control restrictions,

• Where the proper law of the governing law of a Belize Trust is changed to the law of Belize, any previous law cannot operate to vitiate the trust,

• Trusts may be created for a maximum of 120 years and income may be accumulated for a similar period,

• A Belizean Court cannot vary or set aside a trust or recognize the validity of a claim against trust property pursuant to the law of another country in respect of marriage, divorce, succession, or claims of creditors,

• Only one trustee is required.  Simple procedures are given for the appointment and removal of trustees. Corporate trustees may be appointed,

• Registration of the Trust is optional,

• Charitable and non-charitable purpose trusts may be created,

• Trustees are personally liable for loss, depreciation in value of trust assets or loss of profits consequent on a breach of trust.  However, in the case of a corporate trustee the directors are not personally liable,

• Persons who receive property or income with knowledge of breach of trust are constituted constructive trustees thereof.

Popular uses of Belize Trusts:

• Asset Protection:  Belize court cannot entertain any claim against the trust property emanating from the order of a foreign court regarding marriage, divorce, succession or creditors claims.  It is a fact that no Belize Trust has ever been compromised, and there is even a decision of the Supreme Court of Belize on this point.  The Belize Trust has successfully been used  to shield assets despite foreign laws relating to fraudulent transfers, bankruptcies or reciprocal enforcement of judgments.

• Estate Planning:  By utilizing an offshore trust structure the settlor is able to pass along  assets to heirs in an environment that is free of inheritance taxes, or forced heirship laws.  In addition, if one is concerned that a child may squander the inheritance,  controls may be placed on the beneficiaries’ access to the trust assets by implementing a spendthrift or protective trust.

• Tax Planning:  With proper input from onshore and offshore tax professionals, it is possible to arrange the clients affairs so as to legally  reduce his/her tax burden by transferring assets to the offshore trust.

Our Trust Services:

• Legal advice on trust formation,

• Preparation of trust deed,

• Trustee services,

• “Protector” service,

• Accounting support,

• Bank account opening.

Setting up a Belize Trust:

Establishing an offshore trust in Belize is not a complicated process, however settling one’s assets into a trust is a step that should be well-planned.  Careful instructions are taken and every attempt is made to apprise the client of the various repercussions of disposing of his assets in this manner.  A standard Trust Deed establishing a typical offshore discretionary trust is prepared and amended according to the client’s instructions.

To obtain a price-quote for establishment of a Belize Offshore Trust which is tailored to your unique criteria, please e-mail us.