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Belize Trust

A Trust is one of the most flexible existing financial mechanisms, which has one of its main purposes to achieve the best asset protection. The main principle of its functioning is based on the separation of legal ownership of the trust assets from the beneficial ownership. The first one belongs to the Trustees, the second one rests with the Beneficiaries.

Belizean Trusts are formed and governed by the Trusts Act, 1992, designed to incorporate modern and flexible asset protection vehicles. A Belize trust may not be set aside because of claims from creditors in other jurisdictions or the order of a foreign court on account of bankruptcy,divorce, etc.

The Trusts Act provides for the creation of a trust by oral declaration, an instrument in writing, conduct, operation of law, or in any other manner. There is only one type of trust – unit trust – that can be created by an instrument in writing.

Registration of trusts is optional. Either the settlor or a trustee may apply to the Registrar. If a trust is registered, a certified copy of the instrument creating the trust should be submitted along with a fee of US $200. There are no restrictions as to the name of a Belize Trust.

The Registrar is closed for inspection except when the trustee of a trust authorises a person to inspect if this trust is there. The maximum duration of a trust (if it is not charitable trust) under Belize law is 120 years from the date of its incoporation. Trust income may be accumulated for a period not exceeding the maximum duration of the trust.