Belize Tax Free Trusts
A Trust is an arrangement (not unlike a contract) between three persons, the Settlor (the person who sets up the Trust), the Trustee (the person who manages the Trust and its property) and the Beneficiary or beneficiaries (the person or persons who are ultimately designed to benefit from the Trust). Offshore Trusts offer tax deferral possibilities as well as protection from creditors’/litigators’ claims, financial (and political) instability, and much more. Offshore Trusts are also a popular tool for ensuring that family wealth is successfully passed from generation to generation.
The English law against perpetuities does not apply (which means you have the ability to earmark gifts for future descendants no matter how remote).
Belize Trust Legislation
The Belize Trust legislation offers some of the most flexible and robust features available anywhere today. These include:
– the English law against perpetuities does not apply
– the powers and duties of a Protector are set out
– the status of a Letter of Wishes is clarified
– Trustee appointment and removal provisions are flexible and allow for the appointment of a sole Trustee
– the law contains provisions to simplify the drafting of Trust documents
– asset protection provisions so that a Trust may not be set aside on the basis of claims from creditors or the order of a foreign court on account of divorce, bankruptcy, etc.
– prospective Settlors may create protective Trusts in their own favour
– registration of the Trust is optional
– both charitable and non-charitable Trusts are allowed
– non-charitable Trusts may have a maximum duration of 120 years
– Trustees may be given full discretionary powers
The Belize Offshore Trust
The idea of a trust originated centuries ago, rooted in English common law, and is recognized by most countries where English is the official language, such as Belize. The basic concept is this: the founder of the trust passes his or her assets to another person or persons, called trustees. The trustees manage the assets for the benefit of a third party, known as the beneficiary.
Trust is the operative word for a reason. It involves trust. For an individual trying to protect money to benefit from a trust, he or she must create a legal entity, transfer assets to this entity (relinquishing title to them), and then remain the beneficiary of the trust. Said individual certainly needs to trust the trustee. You can probably envision the possibilities: avoiding taxation, hiding money from a spouse during a nasty divorce, moving assets during bankruptcy proceedings.
An offshore trust is simply the formation of a trust in another country’s legal jurisdiction. For example, if you are a resident of Spain with personal liability judgments against you, you might be interested in establishing a Belize offshore trust. In this way, you can legally separate yourself from your assets, protecting those assets from your creditors. You can receive payments as the beneficiary of the trust, or you can name other people you trust as beneficiaries.
Belize offshore trusts often benefit professionals exposed to aggressive, often unexpected litigation, such as accountants, medical personnel, lawyers, and so on.
When forming an offshore trust, ideally you should seek:
– Tax-exempt or tax-free jurisdiction, including from local income taxes and capital gains taxes
– Strong privacy protection
– Solid legal legislation and standing
– Access to foreign investment opportunities not available in your home country
– Easy communication with those helping you establishing the trust
– Inexpensive setup and maintenance costs
In other words, you should seek somewhere that you trust. Belize is becoming one of the most popular destinations for offshore trusts, because our country has all the advantages and none of the drawbacks featured elsewhere.
Advantages of the Belize offshore sector
No income tax
No tax on dividends
No capital gains tax
No inheritance or estate tax
No compensations or other amounts paid by a company
No succession or gift task in relation to any debt obligations, shares or other securities
Highly developed banking sector
Advanced telecommunication facilities
Accessible location (and convenient time zone)
Political stability with peaceful, democratic history
Free zones providing facilities for manufacturing and other business activities
Belize offshore corporations and companies are not required to file tax returns or any other type of report to the government regarding sources of income Information about beneficial owners, shareholders, directors, and officers of Belize offshore companies, Belize limited liability companies, and Belize international business companies is not filed with the government of Belize and not available to the public Strict secrecy law, which prohibits the disclosure of banking and financial information
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Whilst most providers either specialise on personalized consultation at relatively high rates or run bulk registration factories without any support, we want to offer the positive aspects of both types. Therefore Atrium combines professional advice, worldwide registration services, reasonable fees, customized order processing, lifetime support and fast processing. Where others see company formation services as a bulk registration with no support and no individual assistance, we do care about your business needs.