Belize Trust Act

The Trusts Act, Chapter 202 of the Laws of Belize, with substantial amendments introduced by the latest Belize Trusts (Amendment) Act 2007 Trusts governs all Trusts in Belize. The trust law of Belize is one of the strongest and most flexible asset protection trust legislation in the world. It has its foundation based off the Guernsey Trusts Law of 1989, but with various adjustments.

The Belize Trusts Act defines a trust as follows: “A Trust exists where a person (known as a “Trustee”) holds or has vested in him, or is deemed to hold or have vested in him, property which does not form, or which has ceased to form, part of his own estate.

1. For the benefit of any person (known as “a beneficiary”) whether or not yet ascertained or in existence;
2. For any valid charitable or non-charitable purpose which is not for the benefit only of the Trustee; or
3. For such benefit as is mentioned in sub-paragraph (a) and also for any such purpose as is mentioned in subparagraph (b).”

A Trust is a specific legal relationship which has its origins from Common law. Using a Trust, the owner (Settlor) of certain assets transfers these assets to an independent other party called the Trustee. The Trustee, in turn, is legally bound to maintain and manage these assets for the benefit of another person or group of persons called the Beneficiaries. The principle of the Trust rest in the separation of the legal title of the asset from the benefits derived from that asset. The management of these assets is also separated from the benefits derived from that same asset.