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Offshore Trusts
Article provided by Belize Offshore Consultants Inc. Bize established a modern Belize Trust Act in 1992 generally regarded as incorporating the best features of similar laws prevailing in other major offshore jurisdictions such as Cayman, Panama and Bermuda. With the benefit of hindsight, the Belize Trust Act represents the ultimate refinement of this type of legislation and is thus regarded as the most advanced instrument of its kind in the world. Trusts can be established either by oral declaration or by written instruments without any cumbersome requirements or legal expressions. However, unit trusts must be formal written documents and trusts that pertain to property in Belize are unenforceable unless they are written instruments. A critical advantage of Belize Trusts is that the original is prepared in English and drafted in conformance with English common law which is the foundation of all laws in Belize. Other jurisdictions need to prepare the trust in their official language, and then undergo potential pitfalls in translation. Furthermore, unlike some Caribbean islands that are still colonies, Belize as an independent nation is not subject to pressure from a mother country in guaranteeing the confidentiality and integrity of its offshore instruments. Protection of Assets Trusts formed under our law are highly secure since a Belizean court cannot set aside or vary a Belizean trust. No Belize Trust has ever been compromised. A court cannot entertain any claim against the trust property emanating from the order of a foreign court regarding marriage or divorce, or succession or claims by creditors in an insolvency. This is one of the strongest pillars upholding the Belize Trust and serves to completely shield the assets of the trust despite any laws relating to fraudulent transfers, bankruptcies or reciprocal enforcement of judgements laws which litigation-happy attorneys would otherwise use in an attempt to attach assets. Settlors and Beneficiaries The settlor of a trust can be any individual capable of owning and transferring property. The settlor may also be the trustee or protector of the trust. The law provides for the creation of spendthrift trusts and abolishes the rule that a settlor may not be the beneficiary of a spendthrift trust. This is an important element that is lacking in much weaker trusts existing in other jurisdictions, for example the USA, where spendthrift trusts are not possible. Settlors and beneficiaries may give to trustees memoranda of wishes to guide the trustees. Article provided by Belize Offshore Consultants Inc.
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Offshore Banking