Set Up a Trust in Belize

To set up a trust in Belize, investors must comply with the provisions of the Trusts Act. Our experts in company formation in Belize can assist those interested in setting up such a structure.

What is a trust in Belize?

A trust is an arrangement between a Settlor and a Trustee through which the latter manages assets for the appointed Beneficiaries.

What is an International Trust?

In Belize, an International Trust is a legal vehicle used for asset protection.

Who can open a trust in Belize?

Local and foreign investors may set up a trust in Belize. No nationality or residency conditions apply, and the rules that apply can be detailed by our team that can also help you open a company in Belize.

What types of trusts can I open in Belize?

Our team briefly summarizes the characteristics of the two main types of trusts in Belize:

1. The Domestic Trust: registered with the Domestic Trust Register, functioning under the General Registry. Can be used for Belizean real estate and/or assets, and it can be incorporated by Belizean residents or citizens, but also by foreign nationals;
2. The International Trust: can only be set up using a Registered Agent, and it is used for asset protection purposes that do not include Belizean property; It is set up by non-residents.

What are the main purposes of a trust in Belize?

Broadly classified into two categories, individuals can choose to set up a trust in Belize that is charitable or non-charitable. The first category can be opened for purposes such as poverty relief, education, religious or environmental protection purposes, or other ones that serve the community.

A non-charitable trust can be created for any number of other purposes, if this is a specific and reasonable one and it can be fulfilled. Moreover, no purpose shall be unlawful, immoral, or contrary to the applicable public policy in Belize.

How long is the trust valid for?

The maximum duration of a trust in Belize is 120 years from the date of its creation, unless terminated sooner.

What are the conditions for the settlor and beneficiary?

The settlor of a trust, the individual who will open a trust in Belize, can be any person who, according to law, can own and transfer property. Additionally, the settlor can also be a trustee himself, a beneficiary, or a protector within the trust he sets up in the country.

The following matters concern the beneficiary of a Belize trust:

• He/she must be identifiable;
• Can choose to disclaim his/her interest under a trust, or partly disclaim this interest (as may be stipulated in the terms of the trust);
• The trust provisions may include the addition of other beneficiaries or may exclude a certain beneficiary under its applicable terms;
• The benefits offered under the trust can be imposed via an obligation towards the beneficiary (a condition he or she will have to fulfil to receive the trust assets).

Who can act as the trustee of a Belizean trust?

The trustee can be an individual or a corporation.

No trust may be created without the appointment of a trustee. According to law, this type of legal vehicle is set up when the property (assets) placed therein are received or vested in the trustee, in accordance with the terms.

What are the powers and the duties of a trustee?

The implied powers of an appointed trustee include those to:

• -Hold the real or immovable property placed within the trust;
• -Sell and invest the property (may buy land or buildings for the purpose of investing in the trust);
• -Employ the capital of the trust or take any steps to improve or guard the assets placed within the trust;
• -Appropriate investments or property (from time to time or as required) towards the interest of the beneficial owners;
• -Borrow or insure, as well as lend money to beneficiaries, if this is possible under the terms of the trust.

Some of the general duties of trustees include the following:

• -Carry out the administration of the trust in accordance with the applicable law (the Trusts Act and other relevant laws and provisions);
• -Maintain fiduciary duty towards the beneficiaries of the trust;
• -Keep accurate accounts and records;
• -Ensure the control of the property or assets without deriving (directly or indirectly) profit from their trusteeship;
• -Act with due diligence, in good faith, and to the best of their abilities.

What are some examples of fees that apply for trust creation in Belize?

If you are interested in international trust creation, the following fees are relevant:

• The registration fee for an International Trust is $100;
• A fee of $50 applies for the amendment of a registered trust;
• Document inspections are charged at $25.

The fees above are payable to the Belize Companies and Corporate Affairs Registry. Please keep in mind that other taxes and fees may be required.

Contact us for more information on how to set up a trust in Belize and for complete assistance during its creation, both for domestic and international trusts.