Lighthouse
Lighthouse on Belize: Trusts, LLCs, and Foundations

Detailed Contents

This table lists every chapter, section and subsection of Lighthouse on Belize: Trusts, LLCs, and Foundations with its paragraph (¶) number. Each entry links to its place in the text.

Part I: Belize Law, Courts and Regulators

Chapter 1Belize as a Trust, Company and Foundation Jurisdiction

  1. ¶ 101Overview
    1. 101.01The subject of this book
    2. 101.02The jurisdiction
    3. 101.03Three vehicles, one design
    4. 101.04The international trust
    5. 101.05The reader
    6. 101.06The approach of this chapter
    7. 101.07A summary of the position
  2. ¶ 110Belize as a Financial Centre: A History
    1. 110.01The legal inheritance
    2. 110.02The International Business Companies Act 1990
    3. 110.03The Trusts Act 1992
    4. 110.04The 1990s statutes
    5. 110.05The International Foundations Act 2010
    6. 110.06The International Limited Liability Companies Act 2011
    7. 110.07From exemption to transparency
    8. 110.08The sector today
  3. ¶ 120The Three Statutes at a Glance
    1. 120.01The Trusts Act
    2. 120.02The Limited Liability Companies Act
    3. 120.03The International Foundations Act
    4. 120.04Common features
    5. 120.05Differences that matter
    6. 120.06Combined structures
  4. ¶ 130Belize Among the Leading Trust Jurisdictions
    1. 130.01The comparison set
    2. 130.02Two designs
    3. 130.03The domestic fraud-on-creditors statute
    4. 130.04Courts and record
    5. 130.05International standing and banking
    6. 130.06Foundations and LLCs
    7. 130.07Belize stated fairly
  5. ¶ 140The Courts and the Regulator in Brief
    1. 140.01The court of first instance
    2. 140.02The Court of Appeal
    3. 140.03The Caribbean Court of Justice
    4. 140.04The Financial Services Commission
    5. 140.05Registrars
    6. 140.06Belize counsel
  6. ¶ 150The Reform Cycle, 2017 to 2025
    1. 150.01The pressures
    2. 150.02The company reforms of 2017 and 2018
    3. 150.03The tax and substance reforms of 2019
    4. 150.04The Belize Companies Act 2022
    5. 150.05The 2023 amendments
    6. 150.06What the reforms did not change
    7. 150.07The Insolvency and Bankruptcy Act 2025
    8. 150.08The listings
  7. ¶ 160Section 7 and the Meaning of Insolvency: A Preview
    1. 160.01The text
    2. 160.02Three categories of claim
    3. 160.03Insolvency and bankruptcy distinguished
    4. 160.04Fraudulent-transfer claims are insolvency claims
    5. 160.05The statutory context
    6. 160.06An American court's reading
    7. 160.07Consequences
    8. 160.08The limits of section 7(6)
    9. 160.09Analogues in the LLC and Foundations Acts
  8. ¶ 170Who Uses Belize Structures, and Why
    1. 170.01Four groups of clients
    2. 170.02The American client
    3. 170.03The civil-law family
    4. 170.04The business owner
    5. 170.05The record in practice
    6. 170.06Divorce
    7. 170.07Who should not use Belize
  9. ¶ 180Sources, Citation and Method
    1. 180.01The Revised Edition
    2. 180.02Where the texts are found
    3. 180.03A caution about commentary
    4. 180.04Case law
    5. 180.05Citation forms used in this book
    6. 180.06Currency and the date of the law
    7. 180.07Method
  10. ¶ 190How This Book Is Organised
    1. 190.01The seven Parts
    2. 190.02Part I: Belize Law, Courts and Regulators
    3. 190.03Part II: Trusts
    4. 190.04Part III: Limited Liability Companies
    5. 190.05Part IV: Foundations
    6. 190.06Part V: Creditor Protection and Litigation
    7. 190.07Part VI: Tax, Reporting and AML
    8. 190.08Part VII: Forms and Reference
    9. 190.09How to use the book

Chapter 2The Legal System: Constitution, Common Law and the Courts

  1. ¶ 201Overview
    1. 201.01Purpose of the chapter
    2. 201.02The shape of the system
    3. 201.03Why the system matters to the three statutes
    4. 201.04The record of the final court
    5. 201.05Plan of the chapter
    6. 201.06Sources
  2. ¶ 210The Constitution and Its Amendments
    1. 210.01The Constitution as supreme law
    2. 210.02Structure
    3. 210.03The protection of law
    4. 210.04Protection of property
    5. 210.05Enforcement of rights
    6. 210.06Amendment
    7. 210.07The amending Acts
    8. 210.08The Eighth Amendment and the power to amend
    9. 210.09The basic structure doctrine
    10. 210.10The final court's position
    11. 210.11Constitutional questions in lower courts
  3. ¶ 220Reception of English Law and the Common-Law Base
    1. 220.01The reception statute
    2. 220.02What was received
    3. 220.03What was not received
    4. 220.04Post-reception English decisions
    5. 220.05The statutory link to English practice
    6. 220.06The link applied
    7. 220.07Law and equity
    8. 220.08Local legislation
    9. 220.09Interpretation
  4. ¶ 230The Courts: The Senior Courts, the High Court and the Magistracy
    1. 230.01The 2022 reforms
    2. 230.02Reasons for the change
    3. 230.03Reading older materials
    4. 230.04Jurisdiction of the High Court
    5. 230.05Composition
    6. 230.06Tenure and removal
    7. 230.07Divisions and specialist work
    8. 230.08The magistracy
    9. 230.09Injunction powers and their history
  5. ¶ 240The Court of Appeal
    1. 240.01Jurisdiction
    2. 240.02Composition after 2022
    3. 240.03Appointment
    4. 240.04Fixed terms and non-resident judges
    5. 240.05Removal
    6. 240.06Appeals from the Court of Appeal
  6. ¶ 250The Privy Council Legacy
    1. 250.01The Privy Council as final court, 1981 to 2010
    2. 250.02Pending appeals
    3. 250.03Decisions in Belize appeals
    4. 250.04Precedential weight after 2010
    5. 250.05Privy Council trust jurisprudence
  7. ¶ 260The Caribbean Court of Justice and Its Leading Belize Decisions
    1. 260.01The Court
    2. 260.02Status within Belize
    3. 260.03Original jurisdiction
    4. 260.04Routes of appeal
    5. 260.05The value threshold in practice
    6. 260.06The Belize appeals
    7. 260.07The injunction cases and the National Assembly
    8. 260.08Maya Leaders Alliance
    9. 260.09Themes
  8. ¶ 270Judges, Precedent and Law Reporting
    1. 270.01The judiciary
    2. 270.02Independence
    3. 270.03The hierarchy of precedent
    4. 270.04Decisions of the Caribbean Court of Justice from other states
    5. 270.05Publication of judgments
    6. 270.06The thinness of trust authority
    7. 270.07Practice directions
  9. ¶ 280Civil Procedure, Language and the Bar
    1. 280.01The 2025 Rules
    2. 280.02Scope
    3. 280.03The overriding objective
    4. 280.04The Parts that matter in trust and entity disputes
    5. 280.05Administration claims and applications by trustees
    6. 280.06Freezing orders and relief in aid of foreign proceedings
    7. 280.07Costs
    8. 280.08Language
    9. 280.09The legal profession
  10. ¶ 290What the System Means for a Trust or Entity Dispute
    1. 290.01The path of a dispute
    2. 290.02Who applies the protective statutes
    3. 290.03The foreign creditor's options in Belize
    4. 290.04The trustee's position
    5. 290.05Strengths and weaknesses
    6. 290.06Checklist
    7. 290.07Cross-references

Chapter 3The Financial Services Commission and the Licensing of Trust and Company Service Providers

  1. ¶ 301Overview
    1. 301.01The regulator and the regulated
    2. 301.02The statute
    3. 301.03Three regimes in one
    4. 301.04Plan of the chapter
    5. 301.05Why the planner should care
    6. 301.06Sources
  2. ¶ 310From the International Financial Services Commission to the Financial Services Commission
    1. 310.01The International Financial Services Commission
    2. 310.02The regulations of the old regime
    3. 310.03Why a new statute
    4. 310.04Repeal and savings
    5. 310.05Transition for existing providers
    6. 310.06The new regulations
    7. 310.07The amending Acts
    8. 310.08Continuity of the Commission's records
  3. ¶ 320The Commission: Constitution, Functions and Powers
    1. 320.01A body corporate
    2. 320.02Functions
    3. 320.03Powers
    4. 320.04Membership
    5. 320.05Meetings and conflicts
    6. 320.06The Director General
    7. 320.07Registrar
    8. 320.08Confidentiality of the Commission's officers
    9. 320.09Register of licensees
    10. 320.10Finance and accountability
    11. 320.11Electronic administration
  4. ¶ 330Who Needs a Licence
    1. 330.01The prohibition
    2. 330.02The listed financial services
    3. 330.03International asset protection and management
    4. 330.04Registered agents
    5. 330.05Trustee services are registered-agent business
    6. 330.06The trust agent
    7. 330.07Nominee services
    8. 330.08Managing services
    9. 330.09"In or from within Belize."
    10. 330.10Virtual assets
    11. 330.11Penalties for unlicensed business
  5. ¶ 340Obtaining a Licence: Eligibility, Fitness and Propriety, Capital and Insurance
    1. 340.01The application
    2. 340.02Routing through a registered agent
    3. 340.03Eligible applicants
    4. 340.04Disqualification
    5. 340.05Fit and proper
    6. 340.06The four elements
    7. 340.07Capital
    8. 340.08Parent guarantees
    9. 340.09Indemnity insurance
    10. 340.10Physical presence
    11. 340.11Fees
    12. 340.12The decision
  6. ¶ 350Terms of the Licence, Duration, Renewal and Revocation for Default
    1. 350.01Standard terms
    2. 350.02Additional terms
    3. 350.03Duration
    4. 350.04Renewal
    5. 350.05Automatic revocation
    6. 350.06Surrender and orderly exit
    7. 350.07Certificates of good standing
    8. 350.08Changes requiring notice or approval
  7. ¶ 360The Continuing Obligations of Licensees
    1. 360.01Cooperation
    2. 360.02Professional conduct
    3. 360.03Prudential obligations
    4. 360.04The compliance function
    5. 360.05Anti-money laundering duties under the Code
    6. 360.06Duties specific to trustees
    7. 360.07Registers and professional intermediaries
    8. 360.08Records
    9. 360.09Client business
    10. 360.10Transfers between registered agents
    11. 360.11Duties under the entity statutes
    12. 360.12Regulatory reporting
  8. ¶ 370Supervision, Enforcement and Appeals
    1. 370.01The supervisory model
    2. 370.02Entry and inspection
    3. 370.03Investigation and production
    4. 370.04Restraint orders
    5. 370.05Suspension
    6. 370.06Revocation for cause
    7. 370.07Administrative penalties and sanctions
    8. 370.08Disciplinary proceedings under the Code
    9. 370.09Sanctions under the MLTPA
    10. 370.10The Appeal Panel
    11. 370.11Appeals
    12. 370.12Offences
  9. ¶ 380Information Sharing and International Cooperation
    1. 380.01The principle
    2. 380.02Domestic cooperation
    3. 380.03Overseas regulatory authorities
    4. 380.04Compulsory powers on an overseas request
    5. 380.05Memoranda of understanding
    6. 380.06The Director General's power under regulation 25
    7. 380.07Disclosure under the entity statutes
    8. 380.08International cooperation in tax matters
  10. ¶ 390Choosing and Supervising a Belize Trustee or Registered Agent
    1. 390.01Why the choice matters
    2. 390.02Confirming the licence
    3. 390.03Due diligence on the intermediary
    4. 390.04Independence
    5. 390.05The engagement terms
    6. 390.06Drafting the trust instrument
    7. 390.07Ongoing supervision
    8. 390.08Changing the trust agent
    9. 390.09When the intermediary fails
    10. 390.10A checklist

Chapter 4Conflict of Laws and the Recognition of Foreign Judgments

  1. ¶ 401Overview
    1. 401.01The two questions
    2. 401.02The general law and the special statutes
    3. 401.03Why the general law still matters
    4. 401.04The position of the United States creditor
    5. 401.05Foreign insolvency proceedings
    6. 401.06The approach of this chapter
    7. 401.07A note on the courts' names
  2. ¶ 410The Sources of Belize Conflict of Laws
    1. 410.01The common law
    2. 410.02The weight of English decisions
    3. 410.03The Caribbean Court of Justice
    4. 410.04Statutes of general application
    5. 410.05The special statutes
    6. 410.06Treaties and conventions
    7. 410.07Characterization
    8. 410.08Renvoi and public policy
  3. ¶ 420The Proper Law of a Belize Trust
    1. 420.01The statutory rule
    2. 420.02Closest connection
    3. 420.03Why the choice matters
    4. 420.04The 2023 definition of international trust
    5. 420.05Severable aspects
    6. 420.06Change of proper law
    7. 420.07Migration into Belize
    8. 420.08Jurisdiction of the Belize court over trusts
  4. ¶ 430The Law Governing LLCs and Foundations
    1. 430.01The law of the place of formation
    2. 430.02The Belize LLC
    3. 430.03"Matters governed by this Act."
    4. 430.04Transfer of domicile
    5. 430.05The Belize foundation
    6. 430.06Companies under the Belize Companies Act 2022
    7. 430.07Foreign entities beneath a Belize trust
  5. ¶ 440Recognition of Foreign Money Judgments at Common Law
    1. 440.01The action on the judgment
    2. 440.02The four requirements
    3. 440.03Jurisdiction in the international sense
    4. 440.04What does not suffice
    5. 440.05Final, conclusive and for a fixed sum
    6. 440.06The settlor and the trustee distinguished
    7. 440.07The judgment as evidence and as res judicata
  6. ¶ 450Defences to Recognition
    1. 450.01The defences in outline
    2. 450.02Fraud
    3. 450.03Natural justice
    4. 450.04Public policy
    5. 450.05The Caribbean Court of Justice on public policy
    6. 450.06Penal and revenue claims
    7. 450.07Inconsistent judgments and limitation
    8. 450.08The special statutes as public policy
  7. ¶ 460The Reciprocal Enforcement of Judgments Act
    1. 460.01History and structure
    2. 460.02Part I: judgments of the United Kingdom
    3. 460.03Part II: judgments of foreign countries
    4. 460.04Exclusivity, conclusiveness and retaliation
    5. 460.05Matters excluded from Part II
    6. 460.06The United States
    7. 460.07Procedure under the rules of 2025
    8. 460.08The Act and the special statutes
  8. ¶ 470Foreign Insolvency Proceedings
    1. 470.01The common law
    2. 470.02The 2025 Act and its commencement
    3. 470.03Part XVIII: recognition of foreign proceedings
    4. 470.04Avoidance actions under Part XVIII
    5. 470.05Part XIX: orders in aid
    6. 470.06Assets of a Belize trust
    7. 470.07LLCs and foundations
  9. ¶ 480The Statutory Non-Recognition Provisions
    1. 480.01Two techniques
    2. 480.02The Trusts Act
    3. 480.03"The claims of creditors in an insolvency."
    4. 480.04What section 7(6) leaves open
    5. 480.05The LLC Act
    6. 480.06The Foundations Act
    7. 480.07The limits of every non-recognition provision
  10. ¶ 490Service, Evidence and the Foreign Creditor's Path
    1. 490.01Service of foreign process in Belize
    2. 490.02Service of Belize process abroad
    3. 490.03Evidence
    4. 490.04Interim relief
    5. 490.05Security for costs
    6. 490.06The American creditor's path
    7. 490.07Summary

Part II: Trusts

Chapter 5The Trusts Act: Structure, History and Amendments

  1. ¶ 501Overview
    1. 501.01Purpose of the chapter
    2. 501.02The text used
    3. 501.03The shape of the statute
    4. 501.04The two halves of the Act
    5. 501.05Section 7 in this chapter
    6. 501.06Plan of the chapter
  2. ¶ 510Enactment and Antecedents
    1. 510.01Act No. 5 of 1992
    2. 510.02The law the Act replaced
    3. 510.03The Jersey model
    4. 510.04The Hague model in section 4
    5. 510.05What Belize added
    6. 510.06Revised editions
    7. 510.07Why the antecedents matter
  3. ¶ 520The Architecture of the Act
    1. 520.01Arrangement
    2. 520.02The Parts
    3. 520.03The heading of Parts X and XA
    4. 520.04Which provisions apply to which trusts
    5. 520.05Effect of the division
    6. 520.06Does section 66(3) reach Part XA?
    7. 520.07Interpretation provisions
    8. 520.08The Schedules
  4. ¶ 530Part I: Definition, Validity, Proper Law, Creation and Duration
    1. 530.01The definition of a trust
    2. 530.02Validity in Belize
    3. 530.03The proper law
    4. 530.04Creation and formalities
    5. 530.05Duration and accumulation
    6. 530.06A drafting point in section 6
    7. 530.07Grounds of invalidity
    8. 530.08Section 7(6) and (7) in outline
    9. 530.09The definition of insolvency and paragraph (c)
    10. 530.10Property that may be held on trust
  5. ¶ 540Parts II to IV: Settlors, Beneficiaries, Protectors and Trustees
    1. 540.01Scope of this paragraph
    2. 540.02The settlor
    3. 540.03Beneficiaries and their interests
    4. 540.04Protective and spendthrift trusts
    5. 540.05Letters of wishes
    6. 540.06Purposes
    7. 540.07The protector
    8. 540.08Trustees: number, appointment and resident trustees
    9. 540.09Accepting, leaving and the trustee's estate
    10. 540.10The trustee's duties
    11. 540.11Information and confidentiality
    12. 540.12Powers
  6. ¶ 550Parts V to IX: Termination, Variation, Breach, the Court and Variant Trusts
    1. 550.01Failure and lapse
    2. 550.02Distribution on termination
    3. 550.03Termination by the beneficiaries
    4. 550.04Variation by the court
    5. 550.05Liability for breach
    6. 550.06Constructive trusts, tracing and relief
    7. 550.07Limitation
    8. 550.08The powers of the court
    9. 550.09Variant types of trusts
  7. ¶ 560Registration: Parts X and XA
    1. 560.01Before 2007: exempt trusts
    2. 560.02The 2007 Act
    3. 560.03Part XA in outline
    4. 560.04The duty to register
    5. 560.05Refusal and cancellation
    6. 560.06Confidentiality, tax and the trust agent
    7. 560.07Section 65B(7): registration as a condition of protection
    8. 560.08Consequences of section 65B(7)
    9. 560.09Resignation of trust agents and striking off
    10. 560.10The transitional rule for exempt trusts
    11. 560.11The domestic register
  8. ¶ 570The Trusts (Amendment) Act 2023
    1. 570.01The Act
    2. 570.02The policy
    3. 570.03Records and identification information: section 27(7) to (7C)
    4. 570.04Information on request: section 28(1) and (1A)
    5. 570.05The competent authority
    6. 570.06Disclosure of status and the attestation report: sections 30A and 30B
    7. 570.07The new definition of international trust
    8. 570.08Reading the new definition
    9. 570.09The trust agent's notice of amendments: section 65A(5A)
    10. 570.10Offences and administrative fines: sections 68 and 68A
    11. 570.11What the 2023 Act did not change
  9. ¶ 580The Act and Other Legislation
    1. 580.01The statutes the Act names
    2. 580.02The Law of Property Act, section 149
    3. 580.03The Bankruptcy Act and the 2025 Act
    4. 580.04The Reciprocal Enforcement of Judgments Act
    5. 580.05The Trustee Act, 1923
    6. 580.06The Commission's statutes
    7. 580.07The tax statutes
    8. 580.08The anti-money-laundering statutes
    9. 580.09The Belize Companies Act 2022
    10. 580.10The LLC and foundation statutes
  10. ¶ 590Transitional Provisions and Reading the Act
    1. 590.01The transitional provisions
    2. 590.02The 2007 transition in practice
    3. 590.03Reviewing an older trust
    4. 590.04The revised edition and the amending Acts
    5. 590.05Citing the Act
    6. 590.06Checklist for reviewing a Belize trust against the current Act
    7. 590.07Cross-references

Chapter 6Creating a Belize Trust: Formalities, Capacity and Registration

  1. ¶ 601Overview
    1. 601.01Scope
    2. 601.02Two layers of rules
    3. 601.03Why formation matters more in Belize
    4. 601.04The 2023 amendments
    5. 601.05Sources
    6. 601.06Plan of the chapter
  2. ¶ 610The Definition of a Trust and the Requirements of Validity
    1. 610.01The statutory definition
    2. 610.02Validity as the rule
    3. 610.03The grounds of invalidity
    4. 610.04Partial invalidity and the consequence of failure
    5. 610.05The three certainties
    6. 610.06Certainty of intention
    7. 610.07Sham
    8. 610.08Certainty of objects
    9. 610.09Objective nullity and Belize trusts
  3. ¶ 620Modes of Creation and Formalities
    1. 620.01The general rule
    2. 620.02Settlement and declaration
    3. 620.03Oral and informal trusts
    4. 620.04Trusts of Belize land
    5. 620.05Unit trusts
    6. 620.06Testamentary trusts
    7. 620.07International trusts: writing
    8. 620.08International trusts: signatures and authentication
    9. 620.09Language
    10. 620.10Variant trusts
  4. ¶ 630The Settlor and Capacity
    1. 630.01Who is the settlor
    2. 630.02The capacity rule
    3. 630.03Section 9 and section 66(3)
    4. 630.04Mental capacity
    5. 630.05Corporate settlors
    6. 630.06The settlor in other roles
    7. 630.07Reserved powers
    8. 630.08TMSF and Webb compared
    9. 630.09Vitiating factors
  5. ¶ 640Constitution of the Trust and the Transfer of Assets
    1. 640.01Constitution
    2. 640.02Acceptance of property by the trustee
    3. 640.03Declarations over property not yet owned
    4. 640.04Transfer by the method the property requires
    5. 640.05Cash and bank accounts
    6. 640.06Securities
    7. 640.07Shares in a Belize company and interests in a Belize LLC
    8. 640.08Foreign entities and foreign real estate
    9. 640.09Belize land
    10. 640.10Acceptance of office
    11. 640.11Additions
  6. ¶ 650International and Domestic Trusts
    1. 650.01Why the classification matters
    2. 650.02The 2007 definition
    3. 650.03The 2023 definition
    4. 650.04The trustee requirement
    5. 650.05Residence
    6. 650.06Domestic trusts
    7. 650.07Paragraph (g) and the residual category
    8. 650.08Proper law no longer an element
    9. 650.09Loss of international status
  7. ¶ 660Registration of International Trusts
    1. 660.01The Registry
    2. 660.02What the Register and the trust agent's record contain
    3. 660.03Who applies, and when
    4. 660.04The application
    5. 660.05Registration as a condition of protection and validity
    6. 660.06The certificate
    7. 660.07Refusal and cancellation
    8. 660.08Variation and termination
    9. 660.09The trust agent
    10. 660.10Resignation of the trust agent and striking off
    11. 660.11Confidentiality and the Registrar's powers
    12. 660.12The 2007 transitional rule
  8. ¶ 670Registration of Domestic Trusts
    1. 670.01The Domestic Trust Register
    2. 670.02The duty to register
    3. 670.03Variation and termination
    4. 670.04Refusal and cancellation
    5. 670.05Confidentiality
    6. 670.06Inspection of domestic trust records
    7. 670.07Consequences of non-registration
  9. ¶ 680Records, Beneficial Ownership and Continuing Formation Duties
    1. 680.01Formation duties that continue
    2. 680.02Accounts, records and identification information
    3. 680.03Where and for how long
    4. 680.04Disclosure on request
    5. 680.05Disclosure of trustee status
    6. 680.06The annual attestation
    7. 680.07Beneficial owners of a trust
    8. 680.08Offences and fines
  10. ¶ 690The Trust Instrument and a Formation Checklist
    1. 690.01The instrument as the record of formation
    2. 690.02Parties, recitals and declaration
    3. 690.03Proper law, place of administration and forum
    4. 690.04Duration and accumulation
    5. 690.05Beneficiaries
    6. 690.06Trustees and the trust agent
    7. 690.07Settlor's powers
    8. 690.08Registration and compliance clause
    9. 690.09Investment and administrative powers
    10. 690.10Defective formation
    11. 690.11Formation checklist

Chapter 7Trustees: Appointment, Powers, Duties and Liability

  1. ¶ 701Overview
    1. 701.01The trustee as the working part of the trust
    2. 701.02The statutory scheme
    3. 701.03A code that replaced the old Trustee Act
    4. 701.04Which trusts the provisions govern
    5. 701.05The terms of the trust and the statute
    6. 701.06Plan of the chapter
  2. ¶ 710Who May Be a Trustee
    1. 710.01Capacity
    2. 710.02The number of trustees
    3. 710.03Corporate trustees
    4. 710.04The 2023 requirement of a Belize trustee for an international trust
    5. 710.05Reading paragraph (g)
    6. 710.06Consequences of losing a qualifying trustee
    7. 710.07The beneficiary's application for a resident trustee
    8. 710.08Individual and corporate co-trustees in other countries
    9. 710.09The settlor or a beneficiary as trustee
  3. ¶ 720Appointment, Acceptance, Resignation and Removal
    1. 720.01The default order of appointment
    2. 720.02The protector's statutory power
    3. 720.03Acceptance and renunciation
    4. 720.04Resignation
    5. 720.05Removal
    6. 720.06The outgoing trustee's duties and security
    7. 720.07The former trustee's liability
    8. 720.08Registration consequences of a change of trustee
    9. 720.09Corporate trustee changes of control
  4. ¶ 730Vesting, Holding and Dealing with Trust Property
    1. 730.01The trustee's title
    2. 730.02The duty to take control and to preserve
    3. 730.03The nature of the trustee's interest and the trustee's creditors
    4. 730.04Segregation
    5. 730.05Nominees, custodians and agents
    6. 730.06Underlying companies and LLCs
    7. 730.07Trustees of more than one trust
    8. 730.08Dealings with third parties
    9. 730.09Litigation by and against the trustee
  5. ¶ 740The Trustee's Duties
    1. 740.01The general duties
    2. 740.02Administering the trust according to the Act and its terms
    3. 740.03To whom the fiduciary duty is owed
    4. 740.04The no-profit rule
    5. 740.05Acting together
    6. 740.06Impartiality
    7. 740.07Exercising functions for the beneficiaries
    8. 740.08Letters of wishes
    9. 740.09Consents and consultation
    10. 740.10Reading Table 7-1
  6. ¶ 750Records, Information and Reporting After 2023
    1. 750.01The 2023 reforms
    2. 750.02Accounts and records
    3. 750.03Where and for how long
    4. 750.04The duty to provide information on request
    5. 750.05Competent authorities and foreign requests
    6. 750.06Beneficiaries' rights and the terms of the trust
    7. 750.07Confidentiality and the trustee's deliberations
    8. 750.08Disclosure of trustee status
    9. 750.09The annual attestation report
    10. 750.10The trust agent's records and inspection
    11. 750.11Offences and fines
  7. ¶ 760The Trustee's Powers
    1. 760.01The powers of a beneficial owner
    2. 760.02Investment
    3. 760.03Diversification, suitability and advice
    4. 760.04The implied powers in Schedule II
    5. 760.05The power to release powers
    6. 760.06Delegation
    7. 760.07Appropriation, maintenance and advancement
    8. 760.08Powers of appointment and to add or remove beneficiaries
    9. 760.09Revocation and variation
    10. 760.10Powers conferred by the court
  8. ¶ 770The Exercise of Discretions, Mistake and the Rule in Hastings-Bass
    1. 770.01The trustee's judgment
    2. 770.02Three kinds of defective decision
    3. 770.03The position in Belize
    4. 770.04Mistake in the creation of the trust
    5. 770.05Consequences for trustees
    6. 770.06Recording decisions
  9. ¶ 780Remuneration, Indemnity, Exoneration and Liability for Breach
    1. 780.01Reimbursement of expenses
    2. 780.02Remuneration
    3. 780.03Liability for breach of trust
    4. 780.04Predecessors and co-trustees
    5. 780.05Exoneration: the statutory limit
    6. 780.06Applying section 50(6)
    7. 780.07Constructive trusts and tracing
    8. 780.08Relief by beneficiaries and by the court
    9. 780.09Limitation
  10. ¶ 790Directions, Foreign Orders and Duress
    1. 790.01The application for directions
    2. 790.02Why a trustee seeks directions
    3. 790.03The trustee's duty when a foreign order is made
    4. 790.04The settlor's request
    5. 790.05How foreign courts treat the trustee
    6. 790.06The settlor's position and the trustee's refusal
    7. 790.07Duress
    8. 790.08The trustee's own exposure abroad
    9. 790.09A trustee's checklist on receiving a foreign demand

Chapter 8Beneficiaries, Discretionary Interests and Protective Trusts

  1. ¶ 801Overview
    1. 801.01Purpose of the chapter
    2. 801.02The statutory provisions
    3. 801.03The text used
    4. 801.04Three themes
    5. 801.05The settlor as beneficiary
    6. 801.06Case law
    7. 801.07Plan of the chapter
  2. ¶ 810Who May Be a Beneficiary
    1. 810.01The statutory definition
    2. 810.02Identification
    3. 810.03Unborn and unascertained persons
    4. 810.04Classes
    5. 810.05Addition and exclusion
    6. 810.06Powers of appointment to non-objects
    7. 810.07Conditions of benefit
    8. 810.08The settlor as beneficiary
    9. 810.09Trustees and protectors as beneficiaries
    10. 810.10Charities and purposes
  3. ¶ 820Fixed and Discretionary Interests
    1. 820.01The nature of a beneficial interest
    2. 820.02Fixed interests
    3. 820.03Discretionary interests
    4. 820.04The object's interest
    5. 820.05Why the distinction matters in Belize
    6. 820.06Impartiality
    7. 820.07Letters of wishes from beneficiaries
    8. 820.08Duration
  4. ¶ 830Protective and Spendthrift Trusts under Section 12
    1. 830.01The text
    2. 830.02Three techniques
    3. 830.03Restraints on alienation
    4. 830.04The statutory protective trust
    5. 830.05How the statutory trust works
    6. 830.06The determining event
    7. 830.07The self-settled protective trust
    8. 830.08Limits of subsection (4)
    9. 830.09Termination and variation of protective interests
    10. 830.10Choosing a technique
  5. ¶ 840Protective Trusts, Section 7 and the Meaning of Insolvency
    1. 840.01Two protections
    2. 840.02Section 7(6)(c)
    3. 840.03Insolvency as a financial condition
    4. 840.04Fraudulent-transfer claims
    5. 840.05The registration condition
    6. 840.06Section 12(1)(c) and the beneficiary's insolvency
    7. 840.07The two protections together
    8. 840.08The trustee's own creditors
  6. ¶ 850Information, Accounts and Confidentiality
    1. 850.01The 2023 text
    2. 850.02What changed
    3. 850.03Who may request
    4. 850.04"Subject to the terms of the trust."
    5. 850.05Confidentiality
    6. 850.06Deliberations and reasons
    7. 850.07The thirty-day period
    8. 850.08Information held by others
    9. 850.09Information and underlying companies
  7. ¶ 860Disclaimer, Release, Termination and Variation
    1. 860.01Disclaimer
    2. 860.02Form and effect of a disclaimer
    3. 860.03Release and exclusion
    4. 860.04Termination by the beneficiaries
    5. 860.05The rule in Saunders v. Vautier
    6. 860.06Section 47 in asset protection trusts
    7. 860.07Lapse and failure
    8. 860.08Variation by the court
    9. 860.09Express powers of variation
    10. 860.10Beneficiaries' consent and indemnity
  8. ¶ 870Beneficiaries' Remedies
    1. 870.01The scheme of remedies
    2. 870.02The personal claim
    3. 870.03Exemption clauses
    4. 870.04Constructive trusts and tracing
    5. 870.05Limitation
    6. 870.06Reading section 56(2)
    7. 870.07The court's powers
    8. 870.08Removal of a trustee
    9. 870.09A resident trustee
    10. 870.10Remedies abroad
  9. ¶ 880Beneficiaries' Creditors, Spouses and Heirs
    1. 880.01Three kinds of claimant
    2. 880.02Creditors of a beneficiary with a fixed interest
    3. 880.03Creditors of a discretionary object
    4. 880.04Foreign orders against a beneficiary
    5. 880.05Spouses
    6. 880.06The beneficiary in contempt
    7. 880.07Heirs and succession claims
    8. 880.08The settlor-beneficiary
    9. 880.09The record in American courts
  10. ¶ 890United States Beneficiaries and Drafting
    1. 890.01Scope
    2. 890.02Reporting distributions
    3. 890.03Accumulation distributions
    4. 890.04Loans and use of trust property
    5. 890.05Information from the trustee
    6. 890.06The beneficiary provisions of a Belize deed
    7. 890.07Checklist for advising a beneficiary
    8. 890.08Cross-references

Chapter 9Protectors, Reserved Powers and Letters of Wishes

  1. ¶ 901Overview
    1. 901.01Purpose of the chapter
    2. 901.02The statutory provisions
    3. 901.03The two audiences
    4. 901.04Three questions
    5. 901.05Relationship to other chapters
    6. 901.06Sources
  2. ¶ 910The Protector Under the Trusts Act
    1. 910.01Origins of the office
    2. 910.02The statutory definition
    3. 910.03Who may be protector
    4. 910.04The default power to remove and appoint trustees
    5. 910.05Further powers
    6. 910.06The protector is not a trustee
    7. 910.07Several protectors
    8. 910.08Protector of a purpose trust
    9. 910.09The court's jurisdiction over the protector
  3. ¶ 920Fiduciary or Personal: The Character of the Protector's Powers
    1. 920.01The Belize default
    2. 920.02What the fiduciary duty requires
    3. 920.03Displacing the default
    4. 920.04Why the characterization matters
    5. 920.05Reading Pugachev with section 16(5)
    6. 920.06The protector's liability
    7. 920.07Protector's remuneration and conflicts
  4. ¶ 930Powers Reserved by the Settlor
    1. 930.01The absence of a reserved-powers section
    2. 930.02The settlor in other roles
    3. 930.03Revocation and variation
    4. 930.04Powers of appointment and the addition of beneficiaries
    5. 930.05Consent and consultation
    6. 930.06Investment powers and directions
    7. 930.07Change of governing law
    8. 930.08The self-settled protective trust
    9. 930.09Validity and protection distinguished
  5. ¶ 940Sham, Ineffective Disposition and Control
    1. 940.01Three ways a trust fails through the settlor's control
    2. 940.02Sham
    3. 940.03Sham and the protector
    4. 940.04Ineffective disposition
    5. 940.05Ineffective disposition and section 7(6)
    6. 940.06Control for the purposes of a court order
    7. 940.07Practical control
  6. ¶ 950Flight Clauses and the Change of Governing Law
    1. 950.01The function of a flight clause
    2. 950.02The Belize provisions
    3. 950.03Migration and section 7
    4. 950.04Flight clauses in United States courts
    5. 950.05A flight power held by a person in the jurisdiction
    6. 950.06Pugachev and the trustee's power to change the law
    7. 950.07Limits on flight
    8. 950.08Drafting the flight clause
  7. ¶ 960Duress Clauses and United States Contempt
    1. 960.01The function of a duress clause
    2. 960.02No statutory duress provision in Belize
    3. 960.03How a duress clause is tested
    4. 960.04The self-created impossibility rule
    5. 960.05The Pugachev disability clause
    6. 960.06Drafting the duress clause
  8. ¶ 970Letters of Wishes
    1. 970.01Function
    2. 970.02Section 13
    3. 970.03The effect of section 13
    4. 970.04Memoranda prepared by the trustee
    5. 970.05Confidentiality and disclosure
    6. 970.06The general law on disclosure
    7. 970.07Letters of wishes in foreign litigation
    8. 970.08Drafting the letter
    9. 970.09Revising the letter
  9. ¶ 980Enforcers, Consenters, Transparency and Tax
    1. 980.01Enforcers
    2. 980.02Consenters and advisers
    3. 980.03The protector in the register and the trust agent's record
    4. 980.04The protector as beneficial owner
    5. 980.05Records, information and attestation
    6. 980.06Consequences for design
    7. 980.07United States tax consequences in outline
    8. 980.08Automatic migration provisions and the court test
  10. ¶ 990Drafting the Protector Clause and the Letter of Wishes
    1. 990.01Approach
    2. 990.02Appointment, qualifications and succession
    3. 990.03Powers and their character
    4. 990.04The duress clause
    5. 990.05The letter of wishes clause
    6. 990.06Settlor's powers
    7. 990.07Checklist

Chapter 10Purpose Trusts and Charitable Trusts

  1. ¶ 1001Overview
    1. 1001.01Trusts without beneficiaries
    2. 1001.02The statutory provisions
    3. 1001.03Why purpose trusts matter in practice
    4. 1001.04Purpose trusts and section 7
    5. 1001.05Charitable trusts and the regulatory overlay
    6. 1001.06Plan of the chapter
  2. ¶ 1010The Beneficiary Principle and the Statutory Answer
    1. 1010.01The rule at general law
    2. 1010.02The charitable exception at general law
    3. 1010.03The statutory answer
    4. 1010.04Certainty
    5. 1010.05Mixed trusts
    6. 1010.06The Belize court and the English authorities
  3. ¶ 1020Non-Charitable Purpose Trusts Under Section 15
    1. 1020.01The section
    2. 1020.02Structure of the conditions
    3. 1020.03"Specific, reasonable and capable of fulfilment."
    4. 1020.04Legality and public policy
    5. 1020.05"Not for the benefit only of the trustee."
    6. 1020.06The protector condition
    7. 1020.07The Attorney General's power to appoint
    8. 1020.08Comparison with the Jersey law
    9. 1020.09Reading Table 10-1
  4. ¶ 1030The Protector as Enforcer
    1. 1030.01Two kinds of protector
    2. 1030.02The trustee's duty to the purpose and its enforcement
    3. 1030.03Procedural means of enforcement
    4. 1030.04Defining the duty in the instrument
    5. 1030.05Who should be the protector
    6. 1030.06The protector's own liability
  5. ¶ 1040Charitable Trusts
    1. 1040.01The statutory definition
    2. 1040.02The residual head
    3. 1040.03Public benefit
    4. 1040.04Place of performance
    5. 1040.05Exclusively charitable
    6. 1040.06The special rules for charitable trusts
    7. 1040.07The Attorney General
  6. ¶ 1050Duration, Accumulation and Section 6(2)
    1. 1050.01The maximum duration
    2. 1050.02Section 6(2) and its error
    3. 1050.03How a court is likely to read section 6(2)
    4. 1050.04Accumulation
    5. 1050.05The end of the period
  7. ¶ 1060Failure of Purpose, Cy-Près and Variation
    1. 1060.01How a purpose trust ends
    2. 1060.02Non-charitable trusts: the default reversion
    3. 1060.03Charitable trusts: no reversion
    4. 1060.04The cy-près jurisdiction
    5. 1060.05The test of consistency with the settlor's intention
    6. 1060.06Arrangements varying a charitable trust
    7. 1060.07Non-charitable purpose trusts: variation
    8. 1060.08Termination by the persons interested
  8. ¶ 1070Registration, Beneficial Ownership and the Non-Profit Organisations Act 2023
    1. 1070.01International purpose trusts
    2. 1070.02Domestic purpose and charitable trusts
    3. 1070.03Beneficial ownership of a trust without beneficiaries
    4. 1070.04The annual attestation
    5. 1070.05The Non-Profit Organisations Act 2023: scope
    6. 1070.06Registration
    7. 1070.07Refusal and the substantial connection requirement
    8. 1070.08Continuing obligations
    9. 1070.09Publicity
    10. 1070.10The Non-Governmental Organisations Act
  9. ¶ 1080Uses of Purpose Trusts, Section 7, Foundations Compared and United States Tax Points
    1. 1080.01Owning a private trust company
    2. 1080.02Orphan vehicles in financing transactions
    3. 1080.03Holding a family business
    4. 1080.04Philanthropic and mixed structures
    5. 1080.05Section 7 and purpose trusts
    6. 1080.06The asset-protection value of a purpose trust
    7. 1080.07Purpose trusts and foundations compared
    8. 1080.08United States tax points in outline
  10. ¶ 1090Drafting the Purpose or Charitable Trust
    1. 1090.01The order of drafting
    2. 1090.02The purpose clause
    3. 1090.03The enforcement clause
    4. 1090.04The final destination clause
    5. 1090.05Drafting a charitable trust
    6. 1090.06Checklist

Chapter 11Section 7: Non-Recognition of Foreign Law and Foreign Judgments

  1. ¶ 1101Overview
    1. 1101.01The provision
    2. 1101.02A rule addressed to the court
    3. 1101.03Three categories, one design
    4. 1101.04The central question
    5. 1101.05The limits
    6. 1101.06The approach of this chapter
    7. 1101.07Sources
  2. ¶ 1110The Text and Structure of Section 7
    1. 1110.01The text
    2. 1110.02Three groups of rules
    3. 1110.03Subsection (1)
    4. 1110.04Subsections (2) to (5)
    5. 1110.05Subsection (5) and the destination of failed property
    6. 1110.06Subsections (6) and (7)
    7. 1110.07The section applies to all trusts, and subsection (6) to Belize trusts
    8. 1110.08Reading the section as a whole
  3. ¶ 1120The Trusts Section 7(6) Protects
    1. 1120.01"Created under the law of Belize."
    2. 1120.02Foreign-law trusts with a Belize trustee
    3. 1120.03The time of creation
    4. 1120.04Trusts that migrate into Belize
    5. 1120.05Re-settlement as an alternative
    6. 1120.06Trusts that leave Belize
    7. 1120.07The registration condition for international trusts
    8. 1120.08Consequences of a lapse
    9. 1120.09Domestic trusts
    10. 1120.10Trusts created before the Act
    11. 1120.11Categories of trust
  4. ¶ 1130What the Court Is Directed Not to Do
    1. 1130.01Three prohibitions
    2. 1130.02"Vary it."
    3. 1130.03"Set it aside."
    4. 1130.04"Recognise the validity of any claim against the trust property."
    5. 1130.05"Pursuant to the law of another jurisdiction."
    6. 1130.06"Or the order of a court of another jurisdiction."
    7. 1130.07"In respect to."
    8. 1130.08A mandatory direction
    9. 1130.09The trustee's position
  5. ¶ 1140Marriage and Succession: Paragraphs (a) and (b)
    1. 1140.01Paragraph (a)
    2. 1140.02The claims within paragraph (a)
    3. 1140.03Nuptial settlements
    4. 1140.04Harnack and paragraph (a) in practice
    5. 1140.05Paragraph (b)
    6. 1140.06Lifetime settlements and clawback
    7. 1140.07Capacity and the law in force in Belize
    8. 1140.08The Hague Convention compared
    9. 1140.09Overlap between the categories
  6. ¶ 1150"The Claims of Creditors in an Insolvency": Paragraph (c)
    1. 1150.01The question
    2. 1150.02Insolvency as a financial condition
    3. 1150.03The definition in section 67
    4. 1150.04"Bankrupt" and "insolvent" in section 67
    5. 1150.05The word elsewhere in the Act
    6. 1150.06Section 7(7) and the Law of Property Act
    7. 1150.07The Insolvency and Bankruptcy Act 2025
    8. 1150.08Fraudulent-transfer claims are claims of creditors in an insolvency
    9. 1150.09When the condition is tested
    10. 1150.10The contrary commentary
    11. 1150.11An American court's reading
    12. 1150.12Who is a creditor in an insolvency
  7. ¶ 1160Section 7(7): The Statutes Overridden
    1. 1160.01The function of subsection (7)
    2. 1160.02Section 149 of the Law of Property Act
    3. 1160.03What the reference to section 149 shows
    4. 1160.04Section 43 of the Bankruptcy Act
    5. 1160.05Two kinds of avoidance, both overridden
    6. 1160.06The repeal of the Bankruptcy Act
    7. 1160.07What the repeal does not change
    8. 1160.08The Reciprocal Enforcement of Judgments Act
    9. 1160.09Interaction with the 2025 Act's cross-border Parts
  8. ¶ 1170What Section 7 Does Not Do
    1. 1170.01The limits in outline
    2. 1170.02Claims under Belize law
    3. 1170.03Claims outside the three categories
    4. 1170.04Property that never belonged to the settlor
    5. 1170.05Invalidity under section 7(2)
    6. 1170.06Sham and ineffective dispositions
    7. 1170.07Lapse of registration
    8. 1170.08Information, regulation and criminal process
    9. 1170.09The settlor in the foreign court
    10. 1170.10Assets within the reach of a foreign court
  9. ¶ 1180Section 7 in the Wider Act, Compared, and in the Cases
    1. 1180.01Section 7 and section 12
    2. 1180.02Section 7 and section 23
    3. 1180.03Section 7 and section 47
    4. 1180.04Section 7 and section 11
    5. 1180.05Belize compared with the Cook Islands and Nevis
    6. 1180.06The record in Belize
    7. 1180.07Rensin and the migrated trust
    8. 1180.08Harnack
    9. 1180.09What the record teaches
  10. ¶ 1190Preserving the Protection: Planning and Drafting
    1. 1190.01The conditions and the limits
    2. 1190.02Proper law
    3. 1190.03Registration and its continuance
    4. 1190.04Foreign orders and directions
    5. 1190.05Location of the trustee and the assets
    6. 1190.06Timing and solvency
    7. 1190.07Settlor powers
    8. 1190.08Characterising claims in Belize
    9. 1190.09Checklist
    10. 1190.10Cross-references

Chapter 12Variation, Migration, Duration and Termination

  1. ¶ 1201Overview
    1. 1201.01Scope of the chapter
    2. 1201.02The provisions examined
    3. 1201.03Relationship to other chapters
    4. 1201.04Three themes
    5. 1201.05A note on terms
  2. ¶ 1210Duration and the Rule Against Perpetuities
    1. 1210.01The rule
    2. 1210.02A fixed period
    3. 1210.03When the period starts
    4. 1210.04Which trusts the section governs
    5. 1210.05Charitable trusts and the reference to "sub-section (1)(f)."
    6. 1210.06Purpose trusts and variant trusts
    7. 1210.07What happens on the anniversary
    8. 1210.08Extending the period
  3. ¶ 1220Accumulation and Maintenance
    1. 1220.01Accumulation for the life of the trust
    2. 1220.02Accumulation for an empty class
    3. 1220.03Maintenance of minors
    4. 1220.04Advancement
    5. 1220.05Accumulation and maintenance settlements
    6. 1220.06Accumulation and foreign tax
  4. ¶ 1230Variation Under the Terms of the Trust
    1. 1230.01The statutory permission
    2. 1230.02The holder of the power
    3. 1230.03Administrative and dispositive variations
    4. 1230.04Adding and removing beneficiaries
    5. 1230.05Powers of appointment
    6. 1230.06What a variation cannot do
    7. 1230.07Notifying the Registrar
    8. 1230.08The consequence of failing to notify
  5. ¶ 1240Variation by the Court
    1. 1240.01The jurisdiction
    2. 1240.02Consent of the adults
    3. 1240.03Benefit
    4. 1240.04Protective trusts
    5. 1240.05Related powers
    6. 1240.06Variation and resettlement
    7. 1240.07The indicia
    8. 1240.08Trusts governed by foreign law
  6. ¶ 1250Change of Governing Law
    1. 1250.01The provisions
    2. 1250.02The change depends on the terms
    3. 1250.03Severable aspects
    4. 1250.04The holder of the power
    5. 1250.05Recognition of the change in the old jurisdiction
    6. 1250.06Is a change of law a new settlement?
    7. 1250.07The provisions that change with the law
    8. 1250.08The instruments
  7. ¶ 1260Migration into Belize
    1. 1260.01Why trusts move to Belize
    2. 1260.02Preconditions under Belize law
    3. 1260.03Writing and execution
    4. 1260.04Registration and the ninety-day period
    5. 1260.05The 2023 definition and the order of steps
    6. 1260.06Section 7(6) and a trust not "created" in Belize
    7. 1260.07The alternative: a new Belize trust
    8. 1260.08Timing, creditors and the American courts
    9. 1260.09United States tax on migration
  8. ¶ 1270Migration out of Belize and Loss of International Status
    1. 1270.01Why trusts leave Belize
    2. 1270.02Validity on the change
    3. 1270.03The Belize provisions that cease to apply
    4. 1270.04Loss of international status
    5. 1270.05Cancellation and notification
    6. 1270.06Domestic-trust status
    7. 1270.07Tax exemption
    8. 1270.08The outgoing trustee and the trust agent
    9. 1270.09The Belize court's continuing jurisdiction
  9. ¶ 1280Decanting, Resettlement and Termination
    1. 1280.01Decanting
    2. 1280.02The limits of the power
    3. 1280.03One settlement or two
    4. 1280.04Consequences in Belize
    5. 1280.05Revocation
    6. 1280.06Failure and lapse
    7. 1280.07How a trust ends
    8. 1280.08Distribution and retention
    9. 1280.09Final accounts and limitation
    10. 1280.10Deregistration and records
  10. ¶ 1290Planning, Drafting and Checklists
    1. 1290.01Filings and notices
    2. 1290.02The two routes into Belize
    3. 1290.03Model change-of-law provision
    4. 1290.04Model trust period and default provision
    5. 1290.05Model decanting power
    6. 1290.06Checklist: migrating a trust into Belize
    7. 1290.07Checklist: migrating a trust out of Belize
    8. 1290.08Checklist: terminating a Belize trust
    9. 1290.09Cross-references

Chapter 13Private Trust Companies and Trust Administration

  1. ¶ 1301Overview
    1. 1301.01Two subjects
    2. 1301.02The statutory sources
    3. 1301.03Why families use a private trust company
    4. 1301.04The costs of the choice
    5. 1301.05Relationship to other chapters
    6. 1301.06Plan of the chapter
  2. ¶ 1310The Statutory Basis: Belize Companies Act 2022, Part VII
    1. 1310.01The Act and its commencement
    2. 1310.02Part VII
    3. 1310.03The definition
    4. 1310.04Connected trust business
    5. 1310.05How the connection is tested
    6. 1310.06Unremunerated trust business
    7. 1310.07Professional directors and associated persons
    8. 1310.08The exemption from licensing
    9. 1310.09Registration as a condition
  3. ¶ 1320Registration with the Commission Under the PTC Regulations 2022
    1. 1320.01The Regulations
    2. 1320.02Capital
    3. 1320.03Constitution and conduct
    4. 1320.04Application and the annual compliance declaration
    5. 1320.05Fees and surcharge
    6. 1320.06Notice of changes and of loss of status
    7. 1320.07Registered office and inspection
    8. 1320.08The special director
    9. 1320.09Refusal, cancellation and surrender
    10. 1320.10Summary of the requirements
  4. ¶ 1330The PTC as Trustee of a Belize International Trust
    1. 1330.01The 2023 definition of an international trust
    2. 1330.02Sole trustee or co-trustee
    3. 1330.03Loss of the qualifying trustee
    4. 1330.04The trust agent
    5. 1330.05The trust agent's record
    6. 1330.06Registration of the trusts
    7. 1330.07The PTC as protector
    8. 1330.08Foreign trusts with a Belize PTC
    9. 1330.09United States trust classification
  5. ¶ 1340Ownership and Governance
    1. 1340.01Who should own the company
    2. 1340.02Ownership by a purpose trust
    3. 1340.03Ownership by a foundation
    4. 1340.04Ownership by the family
    5. 1340.05Composition of the board
    6. 1340.06Reserved matters and quorum
    7. 1340.07Conflicts of interest
    8. 1340.08Directors' fees and trust-owned companies
    9. 1340.09Succession on the board
  6. ¶ 1350Directors' Duties and Liability
    1. 1350.01Two sets of duties
    2. 1350.02The directors' statutory duties
    3. 1350.03Applying the standard to a private trust company
    4. 1350.04The company's liability for breach of trust
    5. 1350.05Claims against the directors
    6. 1350.06Indemnity and insurance
    7. 1350.07Disqualified and former directors
    8. 1350.08Limitation
  7. ¶ 1360Registered Agent, AML Obligations, Beneficial Ownership and Substance
    1. 1360.01The registered agent's place in the structure
    2. 1360.02The agent's duties under the PTC Regulations
    3. 1360.03Company registers and records
    4. 1360.04Financial records and filing
    5. 1360.05Beneficial ownership of the company
    6. 1360.06Is a private trust company a reporting entity?
    7. 1360.07AML consequences for the registration
    8. 1360.08Nominee arrangements
    9. 1360.09Economic substance
  8. ¶ 1370Trust Administration: Records, Accounts, Information and Attestation
    1. 1370.01The 2023 record-keeping code
    2. 1370.02What must be kept
    3. 1370.03Where and for how long
    4. 1370.04Segregation and identification of trust property
    5. 1370.05Information on request
    6. 1370.06Confidentiality and deliberations
    7. 1370.07The annual attestation
    8. 1370.08The attestation workflow for a private trust company
    9. 1370.09Domestic trusts
    10. 1370.10Sanctions
  9. ¶ 1380Administration in Practice: Distributions, Banks, Audit and Handover
    1. 1380.01The trustee's file
    2. 1380.02Distributions
    3. 1380.03Dealing with banks and other institutions
    4. 1380.04Investment and custody
    5. 1380.05Audit
    6. 1380.06Handover between trustees
    7. 1380.07Change of registered agent or trust agent
    8. 1380.08The administration calendar
  10. ¶ 1390Setting Up a Belize PTC: Planning and Checklist
    1. 1390.01When a private trust company is the right choice
    2. 1390.02Sequence of steps
    3. 1390.03Documents
    4. 1390.04Checklist
    5. 1390.05Concluding observations

Part III: Limited Liability Companies

Chapter 14The Limited Liability Companies Act: History and the 2023 Reforms

  1. ¶ 1401Overview
    1. 1401.01Scope of the chapter
    2. 1401.02The statute and its names
    3. 1401.03Three periods
    4. 1401.04What did not change
    5. 1401.05Why the history matters
    6. 1401.06Sources
    7. 1401.07Plan of the chapter
  2. ¶ 1410Origins and Enactment of the 2011 Act
    1. 1410.01The setting in 2011
    2. 1410.02The LLC form
    3. 1410.03The models: Nevis and the Cook Islands
    4. 1410.04American influence in the text
    5. 1410.05The asset protection features
    6. 1410.06The offshore restrictions
    7. 1410.07Confidentiality and the absence of accounts
    8. 1410.08Enactment and commencement
    9. 1410.09A numbering discrepancy
    10. 1410.10The place of the LLC in Belize practice
  3. ¶ 1420The Architecture of the Act
    1. 1420.01Nine Parts and 105 sections
    2. 1420.02Part I: preliminary provisions
    3. 1420.03Part II: formation and the articles
    4. 1420.04Part III: the Registrar
    5. 1420.05Part IV: the protective core
    6. 1420.06Parts V and VI: the members' economic and membership rights
    7. 1420.07Part VII: management, dissolution and merger
    8. 1420.08Part VIII: transfer of domicile
    9. 1420.09Part IX: miscellaneous provisions
    10. 1420.10What the Act does not contain
  4. ¶ 1430Key Definitions and the Rule of Construction
    1. 1430.01The definition section
    2. 1430.02"Limited liability company" and "foreign limited liability company."
    3. 1430.03"Member," "membership interest" and "membership rights."
    4. 1430.04"Transfer."
    5. 1430.05"Operating agreement."
    6. 1430.06"Control" and "event of duress."
    7. 1430.07"Beneficial owner."
    8. 1430.08"Dollar."
    9. 1430.09"Registered agent," "Commission" and "Registrar."
    10. 1430.10"Resident" and "Court."
    11. 1430.11The 2023 information definitions
    12. 1430.12The rule of construction
  5. ¶ 1440The International LLC, 2011–2023
    1. 1440.01An entity for non-residents
    2. 1440.02The restriction on business in Belize
    3. 1440.03The tax exemption
    4. 1440.04Exchange control
    5. 1440.05Member confidentiality
    6. 1440.06The statutory offence of disclosure
    7. 1440.07Proceedings in camera
    8. 1440.08How the international LLC was used
    9. 1440.09The international setting
  6. ¶ 1450The International Limited Liability Companies (Amendment) Act 2023
    1. 1450.01Enactment
    2. 1450.02The change of name
    3. 1450.03The new definitions
    4. 1450.04Powers moved from the Minister to the Commission
    5. 1450.05Residents admitted
    6. 1450.06Section 15 repealed
    7. 1450.07The new section 94: subjection to Belize tax
    8. 1450.08The meaning of the default
    9. 1450.09What the new section 94 omits
    10. 1450.10Section 94(5) and (6): the transition
    11. 1450.11Administrative fines and the registered agent
    12. 1450.12The Registrar
    13. 1450.13The offence provision
    14. 1450.14Other amendments
    15. 1450.15Consequential amendments: economic substance and stamp duty
  7. ¶ 1460The Limited Liability Companies (Amendment) (No. 2) Act 2023
    1. 1460.01Enactment and purpose
    2. 1460.02New definitions
    3. 1460.03Administration and penalties
    4. 1460.04The records and their filing
    5. 1460.05The operating agreement is now filed
    6. 1460.06The annual attestation
    7. 1460.07The beneficial-ownership register
    8. 1460.08Production and retention
    9. 1460.09Disclosure overrides confidentiality
    10. 1460.10The Registrar's powers, cooperation and public inspection
    11. 1460.11Immunity extended
    12. 1460.12The replacement of section 99
  8. ¶ 1470The Commission, the Registrar, Fees, Renewal, Dissolution and Offences
    1. 1470.01The Commission
    2. 1470.02The Registrar
    3. 1470.03Everything through a registered agent
    4. 1470.04Certificates
    5. 1470.05Annual renewal
    6. 1470.06Fees and the 2012 Regulations
    7. 1470.07Administrative dissolution and reinstatement
    8. 1470.08Judicial dissolution in outline
    9. 1470.09Offences
    10. 1470.10The missing term of imprisonment
    11. 1470.11Prosecution and limitation
    12. 1470.12Privilege and immunity
  9. ¶ 1480Transition: LLCs Formed Before 2023
    1. 1480.01Two Acts, no transitional Part
    2. 1480.02When Act No. 29 took effect
    3. 1480.03The end of the tax exemption
    4. 1480.04The stamp-duty transition
    5. 1480.05The December 2023 deadlines
    6. 1480.06Historical operating agreements
    7. 1480.07Reviewing a pre-2023 operating agreement
    8. 1480.08Classification for American purposes
  10. ¶ 1490The Belize LLC Compared; Planning and Checklist
    1. 1490.01The LLC and the Belize company
    2. 1490.02The tax default compared
    3. 1490.03Belize among the offshore LLC statutes
    4. 1490.04Reading the comparison
    5. 1490.05Choosing the jurisdiction of the LLC
    6. 1490.06Checklist: forming a Belize LLC after 2023
    7. 1490.07Checklist: reviewing an LLC formed before 2023

Chapter 15Formation, the Operating Agreement, Management and Series

  1. ¶ 1501Overview
    1. 1501.01Scope of the chapter
    2. 1501.02The statutory text
    3. 1501.03The design of the statute
    4. 1501.04Default rules and the operating agreement
    5. 1501.05No reported decisions
    6. 1501.06Plan of the chapter
  2. ¶ 1510Formation and the Articles of Organisation
    1. 1510.01Formation through a registered agent
    2. 1510.02The registered agent
    3. 1510.03The registration application
    4. 1510.04Contents of the articles
    5. 1510.05The management statement
    6. 1510.06Filing and the date of formation
    7. 1510.07The name
    8. 1510.08Duration and the annual certificate
    9. 1510.09Amending and restating the articles
    10. 1510.10Purposes and powers
    11. 1510.11Records and the 2023 filing duty
  3. ¶ 1520The Operating Agreement
    1. 1520.01Definition
    2. 1520.02Writing
    3. 1520.03Optional, but in practice essential
    4. 1520.04Contents
    5. 1520.05Who is bound
    6. 1520.06Amendment
    7. 1520.07Enforcement and forum
    8. 1520.08Defaults the agreement may vary, and mandatory rules
    9. 1520.09Matters on which the Act is silent
    10. 1520.10Confidentiality of the agreement
  4. ¶ 1530Members, Interests, Capital and Distributions
    1. 1530.01Admission of members
    2. 1530.02The single-member company
    3. 1530.03Membership interest and membership rights
    4. 1530.04Capital contributions
    5. 1530.05Capital accounts
    6. 1530.06Interim distributions
    7. 1530.07Distributions in kind; the member as creditor
    8. 1530.08The limit on distributions
    9. 1530.09Profits and losses
    10. 1530.10Notice to members
    11. 1530.11Information rights
    12. 1530.12Beneficial ownership register and attestation
  5. ¶ 1540Transfers, Substituted Members and Assignees
    1. 1540.01"Transfer" defined
    2. 1540.02The consent requirement
    3. 1540.03The statutory option
    4. 1540.04The substituted member
    5. 1540.05The assignee
    6. 1540.06Four consequences of section 57
    7. 1540.07Involuntary transfers
    8. 1540.08Allocations on transfer
  6. ¶ 1550Withdrawal, Cessation and Expulsion
    1. 1550.01Withdrawal requires consent
    2. 1550.02The effect of the withdrawal rules
    3. 1550.03Distributions on withdrawal
    4. 1550.04Cessation of membership
    5. 1550.05Death and incapacity
    6. 1550.06Expulsion
    7. 1550.07Consequences of expulsion
    8. 1550.08Expulsion and creditors
  7. ¶ 1560Management, Voting and Standards of Conduct
    1. 1560.01Manager management is the default
    2. 1560.02Agency and authority
    3. 1560.03Qualification of managers
    4. 1560.04Appointment, tenure and removal of managers
    5. 1560.05Voting
    6. 1560.06Majorities and duress
    7. 1560.07The standard of care
    8. 1560.08Loyalty
    9. 1560.09Confidentiality
    10. 1560.10Officers
  8. ¶ 1570The Emergency Manager, Events of Duress and the Succession Committee
    1. 1570.01"Event of duress."
    2. 1570.02Automatic removal of managers
    3. 1570.03Reading section 65(1)
    4. 1570.04Succession
    5. 1570.05The prohibition on honouring compelled instructions
    6. 1570.06Scope of section 65(6)
    7. 1570.07Proxies and votes under duress
    8. 1570.08The succession committee
    9. 1570.09The emergency provisions and foreign courts
  9. ¶ 1580Classes and Series, Merger, Transfer of Domicile and Dissolution
    1. 1580.01Classes and series of interests
    2. 1580.02No segregated series
    3. 1580.03Merger and consolidation
    4. 1580.04Transfer of domicile into Belize
    5. 1580.05Transfer of domicile out of Belize
    6. 1580.06Dissolution
    7. 1580.07Administrative dissolution and restoration
    8. 1580.08Judicial dissolution
    9. 1580.09Winding up
    10. 1580.10The order of distribution
  10. ¶ 1590Drafting the Operating Agreement and a Formation Checklist
    1. 1590.01Approach
    2. 1590.02Management and the Belize manager
    3. 1590.03Distributions
    4. 1590.04Transfers and admission
    5. 1590.05Succession, death and incapacity
    6. 1590.06Amendment, notices and disputes
    7. 1590.07Compliance
    8. 1590.08The annual calendar
    9. 1590.09Formation checklist

Chapter 16The Liability Shield, the Bar on Veil Piercing and the Member's Interest

  1. ¶ 1601Overview
    1. 1601.01Three provisions
    2. 1601.02Outside and inside protection
    3. 1601.03The distinctive feature
    4. 1601.04The limits
    5. 1601.05Plan of the chapter
    6. 1601.06Relation to other chapters
    7. 1601.07Sources
  2. ¶ 1610The Separate Entity and the Statutory Shield
    1. 1610.01The LLC as a legal entity
    2. 1610.02"Solely liable."
    3. 1610.03"Notwithstanding any other law."
    4. 1610.04The persons protected
    5. 1610.05Contract, tort or otherwise
    6. 1610.06The acts of others
    7. 1610.07Assumption by written contract
    8. 1610.08Comparison with the Belize company
    9. 1610.09Managers and officers
    10. 1610.10Criminal liability preserved
  3. ¶ 1620The Limits of the Shield
    1. 1620.01Status and conduct
    2. 1620.02Apparent authority
    3. 1620.03Own wrongs
    4. 1620.04Guarantees, indemnities and personal contracts
    5. 1620.05Capital contributions
    6. 1620.06Wrongful distributions
    7. 1620.07The status of a distribution creditor
    8. 1620.08The two-year period in section 33(6)
    9. 1620.09The sources of personal liability compared
  4. ¶ 1630Section 33(5): The Company Not Liable for Its Members' Debts
    1. 1630.01The text
    2. 1630.02Its significance
    3. 1630.03"Expressly assumed."
    4. 1630.04Payments for a member's benefit
    5. 1630.05Members' tort liabilities
    6. 1630.06Managers' debts
  5. ¶ 1640Section 34: The Bar on Disregarding the Company
    1. 1640.01A direction to the court
    2. 1640.02"Based upon, seeks or purports."
    3. 1640.03"A valid, separate and distinct legal entity."
    4. 1640.04Forward and reverse piercing
    5. 1640.05Affiliation
    6. 1640.06Section 34 and the general law
    7. 1640.07What section 34 does not bar
    8. 1640.08Sham
  6. ¶ 1650Section 34 Compared: United States and English Law
    1. 1650.01Two models
    2. 1650.02The American doctrine applied to LLCs
    3. 1650.03Statutory narrowing
    4. 1650.04Reverse piercing
    5. 1650.05Curci and Manichaean
    6. 1650.06Olmstead and the single-member LLC
    7. 1650.07The comparison in summary
    8. 1650.08English law
  7. ¶ 1660Section 35: The Member Has No Interest in the Company's Property
    1. 1660.01Three rules
    2. 1660.02Title in the LLC's name
    3. 1660.03The member's interest
    4. 1660.04Beneficial-ownership claims
    5. 1660.05Creditors of the member
    6. 1660.06Involuntary events affecting the member
    7. 1660.07Bankruptcy of the member
    8. 1660.08Divorcing spouses
    9. 1660.09Heirs and forced heirship
    10. 1660.10Tax
  8. ¶ 1670What Remains Open to a Creditor
    1. 1670.01The remaining routes
    2. 1670.02Claims against the LLC
    3. 1670.03Personal claims against members and managers
    4. 1670.04The charging order
    5. 1670.05Fraudulent conveyance under section 37
    6. 1670.06The definitions in section 37(8)
    7. 1670.07The LLC's own wrongs
    8. 1670.08Criminal proceeds
    9. 1670.09The creditor's position summarised
  9. ¶ 1680Foreign Courts, Belize Trusts and the Single-Member LLC
    1. 1680.01The foreign court's choice of law
    2. 1680.02Which Belize rules travel
    3. 1680.03What a foreign court can do
    4. 1680.04The position in Belize
    5. 1680.05The location of assets and persons
    6. 1680.06The single-member LLC
    7. 1680.07A single-member LLC owned by a Belize trust
    8. 1680.08Affiliation within the structure
  10. ¶ 1690Planning, Model Provisions and Checklist
    1. 1690.01Two audiences
    2. 1690.02Documenting contributions
    3. 1690.03The operating agreement
    4. 1690.04Managing the LLC as a separate business
    5. 1690.05The single-member LLC and the choice of manager
    6. 1690.06The location of assets
    7. 1690.07Claimants' counsel
    8. 1690.08Checklist

Chapter 17Charging Orders and the Member's Creditors

  1. ¶ 1701Overview
    1. 1701.01Scope of the chapter
    2. 1701.02The design of sections 36 to 38
    3. 1701.03The creditor's position in summary
    4. 1701.04The member's position in summary
    5. 1701.05Sources
  2. ¶ 1710The Charging Order Under Section 36
    1. 1710.01The text
    2. 1710.02Exclusive jurisdiction
    3. 1710.03Who may apply
    4. 1710.04The order and its amount
    5. 1710.05Duration
    6. 1710.06Service and procedure
    7. 1710.07No deposit for a charging application
    8. 1710.08The member's interest
  3. ¶ 1720What the Creditor Receives: The Rights of an Assignee
    1. 1720.01The assignee model
    2. 1720.02Section 57
    3. 1720.03Four consequences for the creditor
    4. 1720.04Allocations of profits and losses
    5. 1720.05The member remains a member
    6. 1720.06The manager's discretion and its limits
    7. 1720.07Distributions on withdrawal and winding up
  4. ¶ 1730Exclusivity and the Bar on Foreclosure
    1. 1730.01The sole and exclusive remedy
    2. 1730.02The bar on involuntary transfer
    3. 1730.03Single-member LLCs
    4. 1730.04Interim relief
    5. 1730.05Section 35 and the LLC's property
    6. 1730.06The Florida reading and the Belize LLC
    7. 1730.07What remains to the creditor
  5. ¶ 1740Section 37: Transfers to the LLC
    1. 1740.01The problem the section addresses
    2. 1740.02The elements of the claim
    3. 1740.03The definitions
    4. 1740.04The meaning of "insolvent" in section 37
    5. 1740.05The definition of "transfer" and contributions for an interest
    6. 1740.06The consequence of a successful claim
    7. 1740.07The time limits
    8. 1740.08Exclusivity, joinder and the deposit for costs
    9. 1740.09The relationship with section 7 of the Trusts Act
  6. ¶ 1750Section 38 and Foreign Judgments
    1. 1750.01The text
    2. 1750.02The scope of the bar
    3. 1750.03Appellate decisions
    4. 1750.04The money judgment against the member
    5. 1750.05The common-law action and its requirements
    6. 1750.06The member in the foreign court
    7. 1750.07Foreign orders against the LLC
  7. ¶ 1760Taxes: The Creditor's Position and Payment of a Charged Member's Taxes
    1. 1760.01Why tax matters to a charging order
    2. 1760.02Classification under Belize and United States law
    3. 1760.03The creditor's tax position
    4. 1760.04Tax distributions
    5. 1760.05Paying the member's tax directly
    6. 1760.06The American statutes
    7. 1760.07The Nevis contrast
    8. 1760.08What the LLC may do
  8. ¶ 1770Bankruptcy, Insolvency Proceedings and Spouses
    1. 1770.01The statutory rule
    2. 1770.02A Belize insolvency of the member
    3. 1770.03A foreign bankruptcy of the member
    4. 1770.04Recognition of the foreign proceeding
    5. 1770.05The debtor's duties in the foreign bankruptcy
    6. 1770.06Spouses
    7. 1770.07Belize matrimonial proceedings
  9. ¶ 1780Belize Compared with Nevis, the Cook Islands and Three American States
    1. 1780.01The comparison set
    2. 1780.02Where Belize is stronger
    3. 1780.03Where Belize differs
    4. 1780.04The American member's choice
  10. ¶ 1790Planning and Drafting
    1. 1790.01The design objectives
    2. 1790.02Management
    3. 1790.03Model provisions
    4. 1790.04Transfers to the LLC
    5. 1790.05Layering with a trust
    6. 1790.06Checklist

Chapter 18Companies Under the Belize Companies Act 2022 and Holding Structures

  1. ¶ 1801Overview
    1. 1801.01Scope of the chapter
    2. 1801.02Place in the book
    3. 1801.03The central comparison
    4. 1801.04Sources
    5. 1801.05Terminology
  2. ¶ 1810The End of the IBC Regime
    1. 1810.01The International Business Companies Act
    2. 1810.02The 2017 and 2018 amendments
    3. 1810.03The 2019 tax reform
    4. 1810.04The 2022 repeal
    5. 1810.05What survived from the IBC
    6. 1810.06What did not survive
  3. ¶ 1820The 2022 Act, Its Commencement and the Re-registration of Existing Companies
    1. 1820.01Enactment
    2. 1820.02The two commencement orders
    3. 1820.03Continuity of former Act companies
    4. 1820.04The compliance period
    5. 1820.05Nominee declarations
    6. 1820.06The administrative strike-off
    7. 1820.07Foreign companies
  4. ¶ 1830Types of Company, Incorporation and the Articles
    1. 1830.01The five types
    2. 1830.02Special forms within the five types
    3. 1830.03The segregated portfolio company
    4. 1830.04Incorporation through a registered agent
    5. 1830.05The articles
    6. 1830.06Names
    7. 1830.07Separate personality and capacity
    8. 1830.08Personal liability of directors and agents
  5. ¶ 1840Shares, Members and Distributions
    1. 1840.01The nature of a share
    2. 1840.02No bearer shares
    3. 1840.03The register of members and legal title
    4. 1840.04Share certificates
    5. 1840.05Issue of shares
    6. 1840.06Transfer
    7. 1840.07Distributions and the solvency test
    8. 1840.08Redemption and treasury shares
    9. 1840.09Mortgages and charges of shares
    10. 1840.10Members and their liability
    11. 1840.11Resolutions and meetings
    12. 1840.12Voting trusts
  6. ¶ 1850Directors: Appointment, Duties, Indemnity
    1. 1850.01Management by the board
    2. 1850.02Appointment and consent
    3. 1850.03The reserve director
    4. 1850.04Removal
    5. 1850.05The duty of good faith
    6. 1850.06Proper purpose and the standard of care
    7. 1850.07Conflicts of interest
    8. 1850.08Indemnity and insurance
    9. 1850.09Directors in a trust structure
  7. ¶ 1860The Registered Agent, Registers, Records and Filings
    1. 1860.01Registered office and registered agent
    2. 1860.02Documents kept at the registered office
    3. 1860.03Minutes and beneficial-ownership information
    4. 1860.04Financial records
    5. 1860.05Filing the registers
    6. 1860.06Public inspection
    7. 1860.07Inspection by directors and members
    8. 1860.08Annual return and annual fee
    9. 1860.09Retention after dissolution
  8. ¶ 1870Members' Remedies, Merger, Continuation, Striking Off and Winding Up
    1. 1870.01Members' remedies
    2. 1870.02Major dispositions and squeeze-out
    3. 1870.03Merger and consolidation
    4. 1870.04Continuation into and out of Belize
    5. 1870.05Striking off
    6. 1870.06Restoration and dissolution
    7. 1870.07Property of a dissolved company
    8. 1870.08Voluntary liquidation of a solvent company
    9. 1870.09Winding up by the Court
  9. ¶ 1880The Company and the LLC Compared as Holding Vehicles
    1. 1880.01The question
    2. 1880.02The LLC member's creditor
    3. 1880.03The shareholder's creditor
    4. 1880.04Foreign judgments against a shareholder
    5. 1880.05Disregarding the company
    6. 1880.06The power to transfer assets in trust
    7. 1880.07The comparison in summary
    8. 1880.08Consequences for planning
  10. ¶ 1890Holding Structures Beneath a Trust or Foundation; U.S. Classification; Checklist
    1. 1890.01The usual structures
    2. 1890.02Where the protection sits
    3. 1890.03Ownership records
    4. 1890.04Directors and control
    5. 1890.05Economic substance and tax
    6. 1890.06United States classification
    7. 1890.07Checklist: a Belize company in a holding structure

Part IV: Foundations

Chapter 19The International Foundations Act 2010: Nature and Formation

  1. ¶ 1901Overview
    1. 1901.01The vehicle
    2. 1901.02The statute and its sources
    3. 1901.03Purpose of the Act
    4. 1901.04The 2023 amendments in brief
    5. 1901.05What this chapter covers
    6. 1901.06The rest of Part IV
  2. ¶ 1910The Foundation in Civil Law and Its Reception in Common-Law Jurisdictions
    1. 1910.01The civil-law foundation
    2. 1910.02Reception in common-law jurisdictions
    3. 1910.03Two families of statutes
    4. 1910.04The Belize models
    5. 1910.05What the civil-law heritage means in practice
  3. ¶ 1920Enactment, Policy and Architecture of the Belize Act
    1. 1920.01Enactment
    2. 1920.02The policy
    3. 1920.03A statute for non-residents
    4. 1920.04The short title
    5. 1920.05The 2013 amendments
    6. 1920.06The architecture
    7. 1920.07Schedules and regulations
    8. 1920.08Definitions that matter for formation
    9. 1920.09The Act's own definition of insolvency
  4. ¶ 1930Legal Personality and the Nature of the Foundation
    1. 1930.01Personality on registration
    2. 1930.02The separate entity protected
    3. 1930.03Ownership of the endowment
    4. 1930.04Irrevocability and the founder's powers
    5. 1930.05The council as governing body
    6. 1930.06Governing law and forum
    7. 1930.07Neither trust nor company
  5. ¶ 1940Who May Use the Act: Residence and the International Foundation
    1. 1940.01The definition
    2. 1940.02The residence rule
    3. 1940.03The effect of the 2023 change of terminology
    4. 1940.04Belize land
    5. 1940.05The resident member of the council
    6. 1940.06The Secretary
  6. ¶ 1950Purposes, Duration and Charitable Foundations
    1. 1950.01The general rule
    2. 1950.02Foundations without beneficiaries
    3. 1950.03Prohibited purposes
    4. 1950.04Invalid purposes
    5. 1950.05Duration
    6. 1950.06Purposes that become impossible
    7. 1950.07Charitable foundations
    8. 1950.08Mixed foundations
  7. ¶ 1960The Foundation Charter and By-Laws
    1. 1960.01Two documents
    2. 1960.02Required contents of the charter
    3. 1960.03Execution
    4. 1960.04Amendment
    5. 1960.05Rules of interpretation
    6. 1960.06By-laws
    7. 1960.07Confidentiality and filing
    8. 1960.08The Commission's sample charter
  8. ¶ 1970Formation, Registration, Renewal and Loss of Registration
    1. 1970.01The sequence
    2. 1970.02The name
    3. 1970.03Reservation
    4. 1970.04The registered agent and registered office
    5. 1970.05The application
    6. 1970.06The Certificate of Establishment
    7. 1970.07Renewal
    8. 1970.08Dissolution
    9. 1970.09Striking off and restoration
  9. ¶ 1980The Endowment and Later Contributions
    1. 1980.01What the endowment is
    2. 1980.02How property passes to the foundation
    3. 1980.03No validation of a defective title
    4. 1980.04Later contributions
    5. 1980.05Community property
    6. 1980.06Protected property: a preview
    7. 1980.07Stamp duty
  10. ¶ 1990The 2023 Amendments, Records, Fees and Offences; Formation Checklist and Model Clauses
    1. 1990.01The 2023 Act
    2. 1990.02Records the foundation must keep
    3. 1990.03The beneficial ownership register
    4. 1990.04Filing with the Registry
    5. 1990.05Confidentiality after 2023
    6. 1990.06Fees
    7. 1990.07Offences and penalties
    8. 1990.08Formation checklist
    9. 1990.09Model charter clauses

Chapter 20Founders, Councils, Protectors and Beneficiaries

  1. ¶ 2001Overview
    1. 2001.01The persons of a foundation
    2. 2001.02Citation
    3. 2001.03A statute that separates the offices
    4. 2001.04Fiduciary duties running to three persons
    5. 2001.05A low default standard of liability
    6. 2001.06The 2023 reforms
    7. 2001.07Plan of the chapter
  2. ¶ 2010The Founder
    1. 2010.01Who is a founder
    2. 2010.02Residence
    3. 2010.03The founder's role in establishment
    4. 2010.04The irrevocable transfer
    5. 2010.05What the founder may not keep
    6. 2010.06What the founder may keep
    7. 2010.07May the founder sit on the council?
    8. 2010.08Founder powers in the sample charter
    9. 2010.09Multiple founders and later contributors
    10. 2010.10The founder's death or incapacity
    11. 2010.11Sham and control
  3. ¶ 2020The Foundation Council: Composition, Residence, Appointment and Removal
    1. 2020.01The council as the foundation's organ
    2. 2020.02Number and kind of members
    3. 2020.03Disqualifications
    4. 2020.04The rule that a member may not benefit
    5. 2020.05Residence and licensing of members
    6. 2020.06The secretary as an alternative
    7. 2020.07Appointment
    8. 2020.08Vacancy and the court
    9. 2020.09Removal
    10. 2020.10Resignation and release
    11. 2020.11Meetings and decisions
    12. 2020.12The council and its members' creditors
  4. ¶ 2030The Council's Powers and Duties
    1. 2030.01The general powers and duties
    2. 2030.02Management of the endowment
    3. 2030.03Investment
    4. 2030.04Distributions
    5. 2030.05Delegation
    6. 2030.06The fiduciary duty and the standard of care
    7. 2030.07To whom the duty is owed
    8. 2030.08Segregation and the purpose
    9. 2030.09Information to beneficiaries and the protector
    10. 2030.10Foreign judgments and orders
    11. 2030.11Relocation
    12. 2030.12Applications to the court
    13. 2030.13Duress
    14. 2030.14Remuneration and the council's charge
    15. 2030.15Persons who receive property for others
  5. ¶ 2040Liability, Exculpation, Release and Relief
    1. 2040.01The structure of Part VII on liability
    2. 2040.02The definition of breach
    3. 2040.03Who may sue, and for what
    4. 2040.04Co-members and predecessors
    5. 2040.05Exculpation by default
    6. 2040.06Acts that are not fraud
    7. 2040.07The relationship between sections 38, 64 and 67
    8. 2040.08Section 64(9)
    9. 2040.09Constructive trusts and tracing
    10. 2040.10Release by a founder or beneficiary
    11. 2040.11Indemnity
    12. 2040.12Relief by the court
    13. 2040.13Protector authorisation as a shield
    14. 2040.14Former officers and third parties
    15. 2040.15The liability provisions in summary
  6. ¶ 2050The Protector
    1. 2050.01The statutory definition
    2. 2050.02A power to direct
    3. 2050.03Who may be protector
    4. 2050.04Appointment
    5. 2050.05Cessation
    6. 2050.06Fiduciary duty
    7. 2050.07The protector's powers in practice
    8. 2050.08Liability and protection
    9. 2050.09The protector in the register and the 2023 regime
    10. 2050.10The foundation protector and the trust protector compared
  7. ¶ 2060Beneficiaries: Designation, Rights, Information and Enforcement
    1. 2060.01The definition
    2. 2060.02Designation in the charter or by-laws
    3. 2060.03Residence
    4. 2060.04Adding, excluding and conditioning
    5. 2060.05Members and the founder as beneficiaries
    6. 2060.06The nature of a beneficiary's interest
    7. 2060.07Distributions
    8. 2060.08Renunciation
    9. 2060.09Information rights
    10. 2060.10Confidentiality and its limits
    11. 2060.11The beneficiary's right to apply to the court
    12. 2060.12Beneficiaries' creditors and spouses
    13. 2060.13United States beneficiaries
  8. ¶ 2070The Registered Agent, the Secretary and the Registers
    1. 2070.01The registered agent
    2. 2070.02Changing the registered agent
    3. 2070.03The secretary
    4. 2070.04The registers the foundation keeps
    5. 2070.05Recording changes
    6. 2070.06The books
    7. 2070.07Members' personal liability for fees
    8. 2070.08Compliance inspections of relevant persons
  9. ¶ 2080Beneficial Ownership After 2023 and United States Tax Points
    1. 2080.01The purpose of the 2023 Act
    2. 2080.02Who is a beneficial owner of a foundation
    3. 2080.03Applying the definition
    4. 2080.04The register and its contents
    5. 2080.05Who bears the obligations
    6. 2080.06Confidentiality yields
    7. 2080.07Penalties and the currency
    8. 2080.08United States tax points in outline
    9. 2080.09Section 4 and the U.S. founder
  10. ¶ 2090Disputes, the Court, Model By-Law Provisions and Checklist
    1. 2090.01The court's jurisdiction
    2. 2090.02The general powers in section 93
    3. 2090.03Directions
    4. 2090.04Standing compared
    5. 2090.05Privacy of proceedings
    6. 2090.06Arbitration
    7. 2090.07The offices at a glance
    8. 2090.08Model by-law provisions
    9. 2090.09Checklist

Chapter 21Foundation Assets, Non-Recognition and Creditor Protection

  1. ¶ 2101Overview
    1. 2101.01Scope of the chapter
    2. 2101.02The statute
    3. 2101.03A protective statute
    4. 2101.04Belize law, Belize court
    5. 2101.05The definitions matter
    6. 2101.06The trust and the foundation compared
    7. 2101.07Sources
  2. ¶ 2110Ownership of the Endowment
    1. 2110.01The foundation owns
    2. 2110.02What the endowment includes
    3. 2110.03No proprietary interest in the founder
    4. 2110.04The significance of section 35 for creditors
    5. 2110.05Sample charters and the statute
    6. 2110.06No proprietary interest in the beneficiaries
    7. 2110.07No proprietary interest in the council
    8. 2110.08Creditors of council members
    9. 2110.09Property the founder did not own
    10. 2110.10Community property
  3. ¶ 2120Anti-Alienation, Exempt Property and the Beneficiary's Interest
    1. 2120.01Section 79
    2. 2120.02Subsection (1): anticipation
    3. 2120.03Subsection (2): exemption from claims
    4. 2120.04Subsection (3): spouses, parents and foreign proceedings
    5. 2120.05Subsections (4) and (5): the beneficiary's own claim
    6. 2120.06Exempt property
    7. 2120.07The reach of the residence exemption
    8. 2120.08Distributions and their timing
    9. 2120.09Renunciation
    10. 2120.10Impounding a beneficiary's interest
    11. 2120.11Comparison with the trust
  4. ¶ 2130The Non-Recognition Provisions
    1. 2130.01Four provisions
    2. 2130.02Section 13: validity
    3. 2130.03The breadth of paragraph (b)
    4. 2130.04Section 96: exclusion of foreign law in proceedings
    5. 2130.05Section 15: the law applied to validity
    6. 2130.06Section 80: relationship claims
    7. 2130.07Section 81: fiscal claims, forfeiture and claims in rem
    8. 2130.08Section 97: no disregard of the foundation
    9. 2130.09Sham and the limits of the firewall
    10. 2130.10Section 14: the grounds of invalidity
    11. 2130.11Section 14(3): property of an invalid foundation
  5. ¶ 2140Creditors of the Founder: The Definitions and Section 82
    1. 2140.01Three definitions
    2. 2140.02"Creditor": a Belize judgment
    3. 2140.03"Insolvency": the filing of a petition
    4. 2140.04Where the word is used
    5. 2140.05Section 82
    6. 2140.06What section 82 does
    7. 2140.07"Solely because."
    8. 2140.08The ordinary creditor and the narrow definition
    9. 2140.09The contrast with the Trusts Act
    10. 2140.10Table
  6. ¶ 2150Section 83: The Belize Fraudulent-Disposition Claim
    1. 2150.01The text
    2. 2150.02Who may sue
    3. 2150.03The standard of proof
    4. 2150.04Factors or elements
    5. 2150.05Factor (a): intent to avoid an existing Belize judgment
    6. 2150.06Factor (b): no supervening legitimate purpose
    7. 2150.07Subsection (3): intent not imputed
    8. 2150.08Factor (c): "insolvent."
    9. 2150.09The remedy
    10. 2150.10Subsection (7): the Belize avoidance statutes excluded
    11. 2150.11Subsection (5): every action, every court
    12. 2150.12Subsection (5A): the sole remedy
    13. 2150.13Subsection (6): one action
    14. 2150.14Comparison with the LLC Act
  7. ¶ 2160Limitation, Security for Costs and Procedure
    1. 2160.01Section 98
    2. 2160.02Subsection (1): the earlier of two dates
    3. 2160.03"Irrespective of the date" of the disposition
    4. 2160.04Subsection (2): later causes of action
    5. 2160.05The scope of subsection (2)
    6. 2160.06Subsection (3): when a cause of action arises
    7. 2160.07Subsection (4): continued foundations
    8. 2160.08Who is excepted
    9. 2160.09Section 99: the affidavit
    10. 2160.10Section 101: the deposit
    11. 2160.11Section 102: no contingent fees
    12. 2160.12Section 100: no claims against the Government
    13. 2160.13Section 106: hearings in camera
    14. 2160.14Applications by outsiders
  8. ¶ 2170The Foundation's Own Creditors and Foreign Orders
    1. 2170.01Two kinds of claim
    2. 2170.02Section 49: no action on foreign process
    3. 2170.03Section 52: directions
    4. 2170.04Section 53: duress
    5. 2170.05Section 50: relocation
    6. 2170.06Section 94: the foundation's own creditors
    7. 2170.07Section 72: no liability for others
    8. 2170.08Section 95: priority on invalidity
    9. 2170.09Insolvency of the foundation
    10. 2170.10Tracing and constructive trusts
  9. ¶ 2180Confidentiality, Transparency and Tax
    1. 2180.01Confidentiality and creditor protection
    2. 2180.02Section 103: the duty of confidentiality
    3. 2180.03Section 104: permitted disclosure
    4. 2180.04The register
    5. 2180.05Records filed with the Registry
    6. 2180.06Cooperation
    7. 2180.07What private creditors can obtain
    8. 2180.08Tax
  10. ¶ 2190Comparison, Planning, Model Clauses and Checklist
    1. 2190.01The three Belize vehicles compared
    2. 2190.02Comparison with the Cook Islands
    3. 2190.03Timing and solvency
    4. 2190.04The purpose
    5. 2190.05The founder's powers
    6. 2190.06The council and the assets
    7. 2190.07Registration and administration
    8. 2190.08Foreign orders
    9. 2190.09Combining the vehicles
    10. 2190.10Model clauses
    11. 2190.11Checklist
    12. 2190.12Cross-references

Chapter 22Foundations Compared with Trusts and LLCs; Continuation and Conversion

  1. ¶ 2201Overview
    1. 2201.01Four vehicles
    2. 2201.02The comparison is statutory
    3. 2201.03Three points of difference that recur
    4. 2201.04The second half of the chapter
    5. 2201.05Plan of the chapter
  2. ¶ 2210Legal Nature, Formation and Residence
    1. 2210.01Three persons and an obligation
    2. 2210.02Why legal personality matters
    3. 2210.03The hybrid character of the foundation
    4. 2210.04Formation compared
    5. 2210.05Registration as a condition of protection
    6. 2210.06Residence
    7. 2210.07The registered agent and the trustee requirement
  3. ¶ 2220Control, Fiduciary Structure and the Rights of Beneficiaries and Members
    1. 2220.01The question of control
    2. 2220.02The settlor of a trust
    3. 2220.03The founder of a foundation
    4. 2220.04The member of an LLC
    5. 2220.05The shareholder of a company
    6. 2220.06Fiduciary structure
    7. 2220.07The rights of beneficiaries and members
    8. 2220.08Why the kind of right matters
  4. ¶ 2230Creditor Protection Compared
    1. 2230.01Three techniques and one omission
    2. 2230.02The trust: non-recognition
    3. 2230.03The trust: the conditions of the protection
    4. 2230.04The LLC: exclusivity and a narrow statutory claim
    5. 2230.05The foundation: exemption, a narrow claim and limitation
    6. 2230.06"Insolvency" in the Foundations Act and in the Trusts Act
    7. 2230.07The company
    8. 2230.08Reading the table
  5. ¶ 2240Duration, Transparency, Tax and Cost
    1. 2240.01Duration
    2. 2240.02Transparency: what is filed
    3. 2240.03Transparency: what is public
    4. 2240.04Belize tax
    5. 2240.05What the tax difference means in practice
    6. 2240.06Cost and administration
  6. ¶ 2250Recognition Abroad and United States Classification
    1. 2250.01Two questions
    2. 2250.02Recognition of the trust
    3. 2250.03Recognition of the foundation, the LLC and the company
    4. 2250.04Recognition and protection
    5. 2250.05United States classification of the trust
    6. 2250.06United States classification of the foundation
    7. 2250.07United States classification of the LLC and the company
    8. 2250.08Reporting in outline
  7. ¶ 2260Continuation of Foundations into and out of Belize
    1. 2260.01Continuation and migration
    2. 2260.02Who may continue into Belize
    3. 2260.03The articles of continuance
    4. 2260.04The certificate and its effect
    5. 2260.05The conditions the continued foundation must meet
    6. 2260.06Continuation and the limitation rules
    7. 2260.07Timing and the foreign court
    8. 2260.08Continuation out of Belize
    9. 2260.09The departing foundation and its creditors
    10. 2260.10Contrast with the trust
  8. ¶ 2270Continuation of LLCs and Companies; Conversion Between Vehicles
    1. 2270.01Transfer of domicile of an LLC into Belize
    2. 2270.02The LLC and the creditor-law clock
    3. 2270.03Transfer of domicile of an LLC out of Belize
    4. 2270.04Continuation of a company
    5. 2270.05Merger
    6. 2270.06Conversion between kinds
    7. 2270.07Trust to foundation
    8. 2270.08Foundation to trust
    9. 2270.09Company to LLC, and LLC to company
    10. 2270.10United States tax on movement and conversion
  9. ¶ 2280Choosing the Vehicle: Client Profiles
    1. 2280.01Method
    2. 2280.02The American client with litigation exposure
    3. 2280.03The civil-law family
    4. 2280.04Forced heirship
    5. 2280.05Divorce
    6. 2280.06The Belize resident
    7. 2280.07Philanthropy
    8. 2280.08The owner of a private trust company
    9. 2280.09The operating business
  10. ¶ 2290Planning Summary, Master Table and Checklists
    1. 2290.01The main points
    2. 2290.02Checklist: choosing the vehicle
    3. 2290.03Checklist: moving a structure into Belize
    4. 2290.04Relation to other chapters

Part V: Creditor Protection and Litigation

Chapter 23Fraudulent-Transfer Claims and the Meaning of "Insolvency" in Section 7(6)⁠(c)

  1. ¶ 2301Overview
    1. 2301.01The claim this chapter examines
    2. 2301.02The answer in one paragraph
    3. 2301.03Why a separate chapter
    4. 2301.04The contrary view
    5. 2301.05What the chapter does not decide
    6. 2301.06Plan of the chapter
    7. 2301.07Sources
  2. ¶ 2310The Anatomy of a Fraudulent-Transfer Claim
    1. 2310.01The common premise
    2. 2310.02The Statute of Elizabeth
    3. 2310.03Section 149 of the Law of Property Act
    4. 2310.04The Uniform Voidable Transactions Act
    5. 2310.05What the Uniform Act presupposes
    6. 2310.06The Bankruptcy Code
    7. 2310.07Section 423 of the Insolvency Act 1986
    8. 2310.08The Insolvency and Bankruptcy Act 2025
    9. 2310.09What every form shares
  3. ¶ 2320Insolvency in the Common Law: Condition and Proceeding
    1. 2320.01Two concepts
    2. 2320.02The statutory tests in English law
    3. 2320.03The single creditor's act as proof of insolvency
    4. 2320.04The cash-flow test
    5. 2320.05The balance-sheet test
    6. 2320.06American law
    7. 2320.07Insolvency as a predicate of persons
    8. 2320.08The figure
  4. ¶ 2330The Words of Section 7(6)(c) in Their Statutory Setting
    1. 2330.01The provision
    2. 2330.02The grammar of the phrase
    3. 2330.03The definition in section 67 and its function
    4. 2330.04The definition was retained in 2023
    5. 2330.05How the National Assembly confines the word when it means to
    6. 2330.06The Limited Liability Companies Act
    7. 2330.07The Insolvency and Bankruptcy Act 2025
    8. 2330.08The Belize Companies Act 2022
    9. 2330.09A consistent usage across thirty-three years
    10. 2330.10The presumption of consistent meaning
  5. ¶ 2340Legislative Design and Purpose
    1. 2340.01The 1992 design
    2. 2340.02An anomaly the contrary reading would create
    3. 2340.03What subsection (7) shows about purpose
    4. 2340.04Exclusion in place of a code
    5. 2340.05The later Belize statutes chose a different technique
    6. 2340.06Amendments without change to the protection
    7. 2340.07Public policy
  6. ¶ 2350The Debtor Who Does Not Pay, and When Insolvency Is Tested
    1. 2350.01The objection
    2. 2350.02"Will not pay" and "cannot pay."
    3. 2350.03Assets that the debtor will not use
    4. 2350.04The transferred property does not count as the debtor's
    5. 2350.05The creditor's dilemma
    6. 2350.06The court need not try the settlor's solvency
    7. 2350.07When the condition is tested
    8. 2350.08Disputed debts
  7. ¶ 2360Existing and Future Creditors
    1. 2360.01Three classes of creditor
    2. 2360.02The foreign law
    3. 2360.03Paragraph (c) makes no distinction
    4. 2360.04A contrast with codes
    5. 2360.05The existing creditor and the settlor's home court
    6. 2360.06The existing creditor in Belize
    7. 2360.07The future creditor
  8. ¶ 2370The Claimants, One by One
    1. 2370.01The method
    2. 2370.02The individual judgment creditor
    3. 2370.03The creditor without an avoidance judgment
    4. 2370.04The judgment creditor of a settlor with other assets
    5. 2370.05The trustee in bankruptcy
    6. 2370.06Receivers
    7. 2370.07Regulators
    8. 2370.08Tax authorities
    9. 2370.09Creditors of a beneficiary
    10. 2370.10Creditors of a trustee or protector
  9. ¶ 2380What Paragraph (c) Does Not Bar
    1. 2380.01The limits in outline
    2. 2380.02Establishment by fraud under section 7(2)(b)(i)
    3. 2380.03Public policy under section 7(2)(b)(ii)
    4. 2380.04Proprietary claims
    5. 2380.05Claims against the settlor personally
    6. 2380.06Trusts outside the subsection
    7. 2380.07Claims under Belize law
    8. 2380.08Assets within the reach of a foreign court
    9. 2380.09The figure
  10. ¶ 2390Solvency Evidence, Pleading and Planning
    1. 2390.01Why solvency still matters
    2. 2390.02The solvency declaration
    3. 2390.03The trustee's diligence
    4. 2390.04Timing, proportion and purpose
    5. 2390.05The location of the assets
    6. 2390.06Pleading paragraph (c) in Belize
    7. 2390.07The settlor's position at home
    8. 2390.08Further arguments for the contrary reading, and the answers
    9. 2390.09Checklist
    10. 2390.10Cross-references

Chapter 24The Insolvency and Bankruptcy Act 2025 and Belize Structures

  1. ¶ 2401Overview
    1. 2401.01The statute
    2. 2401.02Why the Act matters to Belize structures
    3. 2401.03The questions this chapter answers
    4. 2401.04The method
    5. 2401.05Conclusions in summary
    6. 2401.06Plan of the chapter
  2. ¶ 2410The Act, Its Parts and Its Commencement
    1. 2410.01Architecture
    2. 2410.02Commencement by order
    3. 2410.03The first phase
    4. 2410.04The revised schedule
    5. 2410.05The repeal of the Bankruptcy Act
    6. 2410.06The interval
    7. 2410.07The court and the regulator
    8. 2410.08Amendments to other statutes
  3. ¶ 2420The Tests of Insolvency
    1. 2420.01Section 8
    2. 2420.02The structure of the tests
    3. 2420.03The High Court qualifier
    4. 2420.04The statutory demand
    5. 2420.05The insolvency-transaction tests
    6. 2420.06The presumption from foreign recognition
    7. 2420.07The other Belize definitions
  4. ¶ 2430The Bankruptcy of an Individual
    1. 2430.01The bankruptcy order
    2. 2430.02The connection with Belize
    3. 2430.03Who may apply
    4. 2430.04The hearing
    5. 2430.05The estate
    6. 2430.06What the estate does not include
    7. 2430.07Powers exercisable for the bankrupt's benefit
    8. 2430.08The trustee's control
    9. 2430.09Discharge
    10. 2430.10The settlor's bankruptcy in practice
  5. ¶ 2440Companies: Arrangements, Administration and Liquidation
    1. 2440.01Which bodies the corporate Parts reach
    2. 2440.02The Belize LLC and the Belize foundation
    3. 2440.03Creditors' arrangements
    4. 2440.04Administration
    5. 2440.05Liquidation
    6. 2440.06Trust assets held by a company in liquidation
    7. 2440.07Malpractice
    8. 2440.08The Belize Companies Act's own winding-up provisions
  6. ¶ 2450Voidable Transactions
    1. 2450.01Two parallel Parts
    2. 2450.02Part XV applies only in a bankruptcy
    3. 2450.03The vulnerability period
    4. 2450.04Connected persons and trusts
    5. 2450.05The insolvency transaction
    6. 2450.06Undervalue transactions
    7. 2450.07Unfair preferences and other transactions
    8. 2450.08Orders
    9. 2450.09Protection of third parties
    10. 2450.10Other remedies preserved
    11. 2450.11Part VII in outline
  7. ¶ 2460The Trusts Act After the Repeal of the Bankruptcy Act
    1. 2460.01The provisions
    2. 2460.02The function of subsection (7)
    3. 2460.03The rules on references to repealed provisions
    4. 2460.04Is section 43 re-enacted?
    5. 2460.05The contrary argument
    6. 2460.06The claim of a foreign representative
    7. 2460.07A Belize trustee in a Belize bankruptcy
    8. 2460.08A Belize bankruptcy used as a vehicle
    9. 2460.09The interval before June 2027
    10. 2460.10The trustee's response
  8. ¶ 2470LLCs, Foundations and Companies
    1. 2470.01The member's bankruptcy
    2. 2470.02The trustee as assignee
    3. 2470.03Transfers by the member to the LLC: section 37
    4. 2470.04Section 37 and Part XV
    5. 2470.05The LLC as debtor
    6. 2470.06The founder's bankruptcy
    7. 2470.07Section 83(7) and the Interpretation Act
    8. 2470.08The foundation as debtor
    9. 2470.09Companies
  9. ¶ 2480Cross-Border Insolvency and the Foreign Trustee
    1. 2480.01Two Parts
    2. 2480.02Designation
    3. 2480.03Recognition under Part XVIII
    4. 2480.04The effects of recognition
    5. 2480.05Orders in aid under Part XIX
    6. 2480.06What "property of the debtor" means for each structure
    7. 2480.07The power to apply foreign law
    8. 2480.08The foreign trustee before June 2027
    9. 2480.09The foreign trustee after June 2027
  10. ¶ 2490Planning, Drafting and Checklist
    1. 2490.01Timing and solvency
    2. 2490.02Belize law and registration
    3. 2490.03Reserved powers
    4. 2490.04LLC contributions
    5. 2490.05Foundations
    6. 2490.06Corporate trustees and PTCs
    7. 2490.07Responding to a foreign trustee
    8. 2490.08Watching the commencement orders
    9. 2490.09Checklist

Chapter 25Litigating in Belize: Procedure, Injunctions and Directions Applications

  1. ¶ 2501Overview
    1. 2501.01The subject of this chapter
    2. 2501.02The governing instruments
    3. 2501.03What is new in the 2025 Rules
    4. 2501.04Plan of the chapter
    5. 2501.05Relation to other chapters
    6. 2501.06The trustee's perspective and the creditor's
  2. ¶ 2510The High Court, the 2025 Rules and the Forms of Claim
    1. 2510.01The court with jurisdiction
    2. 2510.02Jurisdiction over trusts
    3. 2510.03Jurisdiction over LLCs and foundations
    4. 2510.04The overriding objective
    5. 2510.05Two forms of claim
    6. 2510.06Administration claims
    7. 2510.07Determining a question without an administration claim
    8. 2510.08Applications under Part 11
    9. 2510.09Ordinary claims about trusts and entities
    10. 2510.10Limitation and the date of issue
    11. 2510.11Parties and representation in trust claims
    12. 2510.12Representative claimants and non-parties
  3. ¶ 2520Privacy: Hearings in Private, In Camera Statutes and Publication
    1. 2520.01The general rule and its exceptions
    2. 2520.02Trustees' applications are private
    3. 2520.03Discretionary grounds
    4. 2520.04LLC proceedings in camera
    5. 2520.05Publication of LLC decisions
    6. 2520.06Foundation proceedings in camera
    7. 2520.07Trust proceedings
    8. 2520.08Inspection of the court file
    9. 2520.09Privacy and the foreign court
  4. ¶ 2530Case Management, Disclosure, Evidence and Trial
    1. 2530.01The ordinary claim: the first steps
    2. 2530.02The fixed date claim
    3. 2530.03Case management
    4. 2530.04Standard disclosure
    5. 2530.05Specific disclosure
    6. 2530.06Disclosure and the statutory confidentiality duties
    7. 2530.07Evidence
    8. 2530.08Foreign law as fact
    9. 2530.09Summary disposal
    10. 2530.10Trial and judgment
  5. ¶ 2540Costs, Security for Costs and Statutory Deposits
    1. 2540.01The general rule on costs
    2. 2540.02Quantification
    3. 2540.03Costs capping
    4. 2540.04Costs in trust proceedings
    5. 2540.05Costs in foundation proceedings
    6. 2540.06Security for costs
    7. 2540.07The LLC Act deposit
    8. 2540.08The Foundations Act deposit
    9. 2540.09The deposits and interim relief
  6. ¶ 2550Interim Relief: Freezing, Proprietary and Anti-Suit Injunctions
    1. 2550.01Sources of the power
    2. 2550.02The freezing order defined
    3. 2550.03Timing
    4. 2550.04Procedure
    5. 2550.05Full and frank disclosure
    6. 2550.06The test
    7. 2550.07Freezing orders in aid of foreign proceedings
    8. 2550.08The enforcement condition
    9. 2550.09Freezing orders and Belize trusts
    10. 2550.10Freezing orders and Belize LLCs
    11. 2550.11Freezing orders and Belize foundations
    12. 2550.12Proprietary injunctions
    13. 2550.13Anti-suit injunctions
  7. ¶ 2560Service, Relief in Aid of Foreign Proceedings and Evidence for Foreign Courts
    1. 2560.01Service within Belize
    2. 2560.02Service out without permission
    3. 2560.03The gateways for trust and entity claims
    4. 2560.04Relief in aid of foreign proceedings
    5. 2560.05Methods of service abroad
    6. 2560.06Service on the United States defendant
    7. 2560.07Orders in aid of foreign insolvency proceedings
    8. 2560.08Evidence for foreign courts
    9. 2560.09Letters of request and the Belize trustee
  8. ¶ 2570The Trustee's Application for Directions
    1. 2570.01The statutory power
    2. 2570.02The procedural vehicle
    3. 2570.03Parties
    4. 2570.04The foreign creditor
    5. 2570.05The evidence
    6. 2570.06The form of the order
    7. 2570.07Directions on the trustee's own position in foreign litigation
    8. 2570.08Beddoe applications
    9. 2570.09Surrender of discretion
    10. 2570.10Foundation councils
    11. 2570.11LLC managers
  9. ¶ 2580Approval of Momentous Decisions, Representation and the Attorney General
    1. 2580.01Four kinds of application
    2. 2580.02The approval application
    3. 2580.03The court's task
    4. 2580.04Caution
    5. 2580.05Professional advice
    6. 2580.06Approval and the protective statutes
    7. 2580.07Compromise on behalf of absent beneficiaries
    8. 2580.08The Attorney General
    9. 2580.09Protectors and the court
  10. ¶ 2590Strike-Out, Appeals, a Timetable and a Litigation Checklist
    1. 2590.01Striking out barred claims
    2. 2590.02Section 7(6) on a strike-out application
    3. 2590.03Security, deposit and strike-out together
    4. 2590.04Appeals to the Court of Appeal
    5. 2590.05Appeals to the Caribbean Court of Justice
    6. 2590.06A procedural timetable
    7. 2590.07The trustee's litigation checklist
    8. 2590.08The creditor's checklist

Chapter 26Belize Structures in Foreign Courts

  1. ¶ 2601Overview
    1. 2601.01The two forums
    2. 2601.02The settled pattern
    3. 2601.03Why the distinction matters
    4. 2601.04Scope and sources
    5. 2601.05Terms
    6. 2601.06Summary of conclusions
  2. ¶ 2610Jurisdiction Over the Settlor, the Trustee and the Assets
    1. 2610.01Three objects of jurisdiction
    2. 2610.02The settlor
    3. 2610.03Members and founders
    4. 2610.04The Belize fiduciary
    5. 2610.05The fiduciary's choice: appear or abstain
    6. 2610.06Rule 19 and the absent trustee
    7. 2610.07The assets
    8. 2610.08The bankruptcy court's reach
  3. ¶ 2620Choice of Law: Why Foreign Courts Apply Their Own Law
    1. 2620.01The question the foreign court asks
    2. 2620.02The Restatement rule
    3. 2620.03Brown: the tort approach
    4. 2620.04Rensin: the public-policy approach
    5. 2620.05Bankruptcy: "applicable nonbankruptcy law."
    6. 2620.06What the choice-of-law ruling decides
    7. 2620.07The LLC and the foundation
    8. 2620.08States with self-settled trust statutes
  4. ¶ 2630The Belize Cases: Brown, Rensin, Harnack and Sanctuary Belize
    1. 2630.01The record
    2. 2630.02Brown's reasoning on Belize law
    3. 2630.03Other matters reported
    4. 2630.04What the four decisions have in common
    5. 2630.05What they do not decide
    6. 2630.06The receivership model
  5. ¶ 2640Repatriation, Turnover and Civil Contempt
    1. 2640.01The order on the person
    2. 2640.02What compliance requires
    3. 2640.03The impossibility defence
    4. 2640.04Self-created impossibility
    5. 2640.05The rare successful defence
    6. 2640.06Duration of confinement
    7. 2640.07The Belize fiduciary's position
    8. 2640.08Repatriation orders and the Belize court
  6. ¶ 2650Bankruptcy: Property of the Estate, Section 548(e) and Discharge
    1. 2650.01Why bankruptcy is the hardest forum
    2. 2650.02The estate
    3. 2650.03What "property of the estate" achieves
    4. 2650.04Avoidance under state law
    5. 2650.05Section 548(e): the ten-year rule for self-settled trusts
    6. 2650.06Section 548(e) applied to Belize structures
    7. 2650.07Denial of discharge
    8. 2650.08The debtor's choice
    9. 2650.09The trustee in bankruptcy in Belize
  7. ¶ 2660Fraudulent-Transfer Judgments, Alter Ego and Reverse Piercing
    1. 2660.01Three kinds of foreign judgment
    2. 2660.02The fraudulent-transfer judgment in the forum
    3. 2660.03The fraudulent-transfer judgment in Belize
    4. 2660.04The LLC and the foundation
    5. 2660.05Alter ego and reverse piercing in the forum
    6. 2660.06Single-member LLCs and Olmstead
    7. 2660.07Alter-ego judgments in Belize
    8. 2660.08Execution in the forum
  8. ¶ 2670Discovery, Section 1782 and Information Exchange
    1. 2670.01Information as the creditor's first objective
    2. 2670.02Documents within the debtor's control
    3. 2670.03Belize confidentiality in a foreign court
    4. 2670.04Section 1782: discovery in aid of Belize proceedings
    5. 2670.05Section 1782 for and against the structure
    6. 2670.06Evidence from Belize for foreign courts
    7. 2670.07Government-to-government exchange
  9. ¶ 2680Regulatory and Criminal Exposure, and the Belize Trustee's Response
    1. 2680.01Regulators as creditors
    2. 2680.02Asset freezes and repatriation in enforcement actions
    3. 2680.03Receivership and control of entities
    4. 2680.04Monetary relief through contempt
    5. 2680.05Tax claims
    6. 2680.06Criminal exposure
    7. 2680.07The Belize fiduciary's response: principles
    8. 2680.08The direction not to comply
    9. 2680.09The settlor's request and the fiduciary's record
  10. ¶ 2690What the Record Teaches: Planning, Table of Decisions and Checklist
    1. 2690.01The decisions in summary
    2. 2690.02First lesson: the assets follow the fiduciary
    3. 2690.03Second lesson: the debtor stays exposed
    4. 2690.04Third lesson: bankruptcy changes the balance
    5. 2690.05Fourth lesson: the Belize court's direction is the trustee's shield
    6. 2690.06Fifth lesson: the untested question
    7. 2690.07Checklist

Chapter 27Structuring with Belize Trusts, LLCs and Foundations

  1. ¶ 2701Overview
    1. 2701.01Purpose of the chapter
    2. 2701.02The protective core
    3. 2701.03What the statutes cannot do
    4. 2701.04Three design principles
    5. 2701.05Sources
    6. 2701.06Organisation of the chapter
  2. ¶ 2710Objectives and Threat Assessment
    1. 2710.01Objectives first
    2. 2710.02The threat assessment
    3. 2710.03The client who should not proceed
    4. 2710.04Classes of creditor
    5. 2710.05Matrimonial and succession objectives
    6. 2710.06Recording the assessment
  3. ¶ 2720Choosing the Vehicles
    1. 2720.01The choice in outline
    2. 2720.02The trust as the top vehicle
    3. 2720.03The foundation as the top vehicle
    4. 2720.04The LLC as the holding vehicle
    5. 2720.05The company as a holding vehicle
    6. 2720.06The domestic vehicle
  4. ¶ 2730The Standard Combinations
    1. 2730.01The Belize trust over a Belize LLC
    2. 2730.02The foundation over a Belize LLC
    3. 2730.03The trust with a private trust company
    4. 2730.04American assets beneath the structure
    5. 2730.05The "domestic first, offshore later" pattern
    6. 2730.06The migrated trust
    7. 2730.07An operating business beneath the structure
  5. ¶ 2740Timing, Solvency and the Creditor Clocks
    1. 2740.01Why timing matters
    2. 2740.02Solvency evidence
    3. 2740.03Proportion and retained assets
    4. 2740.04Staged funding
    5. 2740.05The foreign clocks
    6. 2740.06The trust clock in Belize
    7. 2740.07The foundation clock
    8. 2740.08The LLC clock
    9. 2740.09The Belize bankruptcy clock
    10. 2740.10The clocks compared
  6. ¶ 2750Settlor Control, Protectors and Duress
    1. 2750.01The tension
    2. 2750.02What the settlor may keep
    3. 2750.03What the settlor should not keep
    4. 2750.04The protector
    5. 2750.05Duress provisions
    6. 2750.06The trustee's application for directions
    7. 2750.07Persons within the forum
    8. 2750.08The client's personal exposure
  7. ¶ 2760Where the Assets Sit
    1. 2760.01Protection follows the asset
    2. 2760.02American assets
    3. 2760.03Liquid assets offshore
    4. 2760.04Insurance and annuity products
    5. 2760.05Real property outside the United States
    6. 2760.06Assets in Belize
    7. 2760.07Moving assets into the structure
    8. 2760.08Assets for the client's use
  8. ¶ 2770Administration That Holds
    1. 2770.01Why administration matters
    2. 2770.02The trust
    3. 2770.03The LLC
    4. 2770.04The foundation
    5. 2770.05The private trust company
    6. 2770.06Records of decisions
    7. 2770.07The administration calendar
    8. 2770.08Changes of service provider
    9. 2770.09Cost
  9. ¶ 2780United States Reporting, Exit and Unwinding
    1. 2780.01Reporting as part of the design
    2. 2780.02Compliance and protection
    3. 2780.03Clients outside the United States
    4. 2780.04Planning the exit
    5. 2780.05Methods of exit
    6. 2780.06The exit and the client's creditors
    7. 2780.07The death of the settlor
  10. ¶ 2790Failure Patterns, Decision Table and Master Checklist
    1. 2790.01What the reported cases show
    2. 2790.02Five failure patterns
    3. 2790.03What the record does not show
    4. 2790.04The decision table
    5. 2790.05The order of decisions
    6. 2790.06Master checklist
    7. 2790.07The book's next Part

Part VI: Tax, Reporting and AML

Chapter 28Belize Taxation and the Economic Substance Act 2019

  1. ¶ 2801Overview
    1. 2801.01The subject
    2. 2801.02Why the subject matters to a protective structure
    3. 2801.03The position in summary
    4. 2801.04Plan of the chapter
    5. 2801.05A caution on currency and later amendments
  2. ¶ 2810From Tax Exemption to Tax Transparency: The History
    1. 2810.01The two tax systems
    2. 2810.02The international objection
    3. 2810.03The 2019 reforms
    4. 2810.04The 2022 and 2023 reforms
    5. 2810.05What the reforms left
    6. 2810.06The listings and their end
  3. ¶ 2820The Income and Business Tax Act: Residence, Source, Income Tax and Business Tax
    1. 2820.01Two taxes in one statute
    2. 2820.02Administration
    3. 2820.03Income tax: the source rule
    4. 2820.04Residence of individuals
    5. 2820.05Residence of companies and other persons
    6. 2820.06Business tax: the charge
    7. 2820.07Interest deemed to accrue in Belize
    8. 2820.08Rates
    9. 2820.09Exemptions from business tax
    10. 2820.10Foreign tax credit and capital gains
    11. 2820.11Returns
  4. ¶ 2830Companies, LLCs, Trusts and Foundations under the Income and Business Tax Act
    1. 2830.01The Belize company
    2. 2830.02The company's monthly cycle
    3. 2830.03The LLC: the disregarded default
    4. 2830.04Applying the default to non-resident members
    5. 2830.05The election to be taxed as a company
    6. 2830.06The single-member rule
    7. 2830.07The foreign-tax-resident exclusion
    8. 2830.08Who can use the exclusion
    9. 2830.09The international trust
    10. 2830.10The trust and the LLC it owns
    11. 2830.11Domestic trusts
    12. 2830.12The foundation
    13. 2830.13The private trust company
  5. ¶ 2840Withholding and Payments to Non-Residents
    1. 2840.01The withholding provisions
    2. 2840.02Dividends
    3. 2840.03Interest paid to non-residents
    4. 2840.04Management fees and similar payments
    5. 2840.05Gross contract payments
    6. 2840.06Distributions by trusts and foundations
    7. 2840.07Treaties and information exchange
  6. ¶ 2850Stamp Duty and Other Transaction Taxes
    1. 2850.01The territorial rule
    2. 2850.02The holding-entity relief
    3. 2850.03The ad valorem duties
    4. 2850.04Land
    5. 2850.05The vehicle exemptions
    6. 2850.06Funding and reorganising a structure
    7. 2850.07The General Sales Tax
  7. ¶ 2860The Economic Substance Act 2019: Scope, Relevant Activities and the Substance Test
    1. 2860.01The statute
    2. 2860.02Commercial entities
    3. 2860.03What the Act does not reach
    4. 2860.04The foreign-tax-resident exclusion
    5. 2860.05Included and non-included entities
    6. 2860.06The seven relevant activities
    7. 2860.07Holding companies
    8. 2860.08The typical asset-protection structure
    9. 2860.09The substance test
    10. 2860.10Outsourcing
    11. 2860.11The private trust company and other regulated vehicles
  8. ¶ 2870Economic Substance Reporting, Penalties and Exchange of Information
    1. 2870.01The reporting duty
    2. 2870.02Form D
    3. 2870.03Spontaneous exchange
    4. 2870.04Electronic filing and records
    5. 2870.05Inspections and audits
    6. 2870.06Failure to meet the substance test
    7. 2870.07Offences and administrative penalties
    8. 2870.08Process and appeal
    9. 2870.09Anti-avoidance and striking off
    10. 2870.10Moving a function out of the Act
  9. ¶ 2880Planning Each Vehicle
    1. 2880.01The comparison
    2. 2880.02The trust
    3. 2880.03The foundation
    4. 2880.04The LLC
    5. 2880.05The company
    6. 2880.06Compliance calendar
    7. 2880.07Interaction with home-country reporting
  10. ¶ 2890Checklist and Summary
    1. 2890.01What the reforms changed and what they kept
    2. 2890.02The disregarded LLC as the default holding entity
    3. 2890.03Checklist
    4. 2890.04Cross-references

Chapter 29Beneficial Ownership, AML/CFT and International Standards

  1. ¶ 2901Overview
    1. 2901.01The subject
    2. 2901.02Why the subject belongs in a book on protective structures
    3. 2901.03Confidentiality and secrecy
    4. 2901.04Sources
    5. 2901.05Plan of the chapter
  2. ¶ 2910The International Standards
    1. 2910.01Four bodies of standards
    2. 2910.02FATF Recommendation 10: customer due diligence
    3. 2910.03Recommendation 22: designated non-financial businesses and professions
    4. 2910.04Recommendations 24 and 25: beneficial ownership of legal persons and legal arrangements
    5. 2910.05Exchange of information on request
    6. 2910.06The Common Reporting Standard
    7. 2910.07FATCA
    8. 2910.08The European Union list
  3. ¶ 2920Belize's Ratings and Listings
    1. 2920.01A record of reform under pressure
    2. 2920.02The CFATF fourth-round mutual evaluation
    3. 2920.03The Global Forum reviews
    4. 2920.04The European Union list
    5. 2920.05CRS and FATCA status
    6. 2920.06What the ratings mean for a client
  4. ¶ 2930The Money Laundering and Terrorism (Prevention) Act: Reporting Entities and Supervisors
    1. 2930.01The statute
    2. 2930.02Who is a reporting entity
    3. 2930.03The schedule and Belize structures
    4. 2930.04Supervisory authorities
    5. 2930.05Private trust companies and individual trustees
    6. 2930.06The Financial Intelligence Unit
    7. 2930.07The Code of Conduct
  5. ¶ 2940Customer Due Diligence, Politically Exposed Persons and Records
    1. 2940.01The basic duty
    2. 2940.02Legal persons and legal arrangements
    3. 2940.03Beneficiaries of trusts
    4. 2940.04Persons acting for others
    5. 2940.05Politically exposed persons
    6. 2940.06Enhanced due diligence
    7. 2940.07Ongoing monitoring
    8. 2940.08Records
  6. ¶ 2950Suspicious Transaction Reports, Offences and Sanctions
    1. 2950.01The duty to report
    2. 2950.02Tax offences
    3. 2950.03Asset protection and suspicion
    4. 2950.04Tipping-off and the destruction of documents
    5. 2950.05The money laundering offence
    6. 2950.06Administrative sanctions
    7. 2950.07Consequences for a structure
  7. ¶ 2960Beneficial Ownership: Definitions, Registers and Filings
    1. 2960.01Three sources of the definition
    2. 2960.02Two discrepancies
    3. 2960.03The method for legal persons
    4. 2960.04Trusts
    5. 2960.05The trust's annual attestation
    6. 2960.06Foundations
    7. 2960.07LLCs and companies
    8. 2960.08Retention and dissolution
    9. 2960.09Who may see the information
  8. ¶ 2970Information Exchange and the Limits of Confidentiality
    1. 2970.01Four channels
    2. 2970.02Financial intelligence
    3. 2970.03Regulatory cooperation
    4. 2970.04The statutory overrides of confidence
    5. 2970.05Tax information
    6. 2970.06Private litigants
    7. 2970.07Confidentiality preserved
  9. ¶ 2980The Common Reporting Standard and FATCA
    1. 2980.01Why classification matters
    2. 2980.02The CRS categories
    3. 2980.03The Belize trust under the CRS
    4. 2980.04The private trust company
    5. 2980.05LLCs and foundations
    6. 2980.06FATCA without an intergovernmental agreement
    7. 2980.07United States persons
  10. ¶ 2990The Practitioner's Compliance Workflow
    1. 2990.01One workflow for four regimes
    2. 2990.02Onboarding
    3. 2990.03Formation filings
    4. 2990.04Ongoing monitoring
    5. 2990.05Annual filings and reporting
    6. 2990.06Changes and exits
    7. 2990.07Compliance checklist

Chapter 30U.S. Tax and Reporting for Belize Trusts, LLCs and Foundations

  1. ¶ 3001Overview
    1. 3001.01The subject of this chapter
    2. 3001.02Neutrality of the structures
    3. 3001.03The order of analysis
    4. 3001.04Relationship to the Belize chapters
    5. 3001.05Sources and currency
    6. 3001.06Compliance as a design requirement
  2. ¶ 3010Classifying the Belize Trust and the Belize Foundation
    1. 3010.01Two questions
    2. 3010.02Trust or business entity
    3. 3010.03The Belize foundation
    4. 3010.04Foreign or domestic trust
    5. 3010.05The Belize trust is a foreign trust
    6. 3010.06Automatic migration and flight clauses
    7. 3010.07Inadvertent changes
    8. 3010.08Purpose trusts and private trust company structures
  3. ¶ 3020Classifying Belize LLCs and Companies
    1. 3020.01The entity classification regulations
    2. 3020.02The default for a foreign eligible entity
    3. 3020.03The Belize LLC is an association by default
    4. 3020.04Belize law's own classification rule is irrelevant
    5. 3020.05The Belize company
    6. 3020.06Making the election
    7. 3020.07Relevance of classification
    8. 3020.08Which classification to elect
  4. ¶ 3030The Foreign Grantor Trust
    1. 3030.01The grantor trust rules
    2. 3030.02Section 679
    3. 3030.03Exceptions to section 679
    4. 3030.04The retained-interest and retained-power rules
    5. 3030.05Protectors and reserved powers
    6. 3030.06The foreign grantor limitation
    7. 3030.07Consequences of grantor trust status
    8. 3030.08Loans and use of property
    9. 3030.09Death of the grantor
  5. ¶ 3040The Foreign Non-Grantor Trust
    1. 3040.01When a Belize trust is a non-grantor trust
    2. 3040.02Distributable net income
    3. 3040.03Accumulation distributions and the throwback rules
    4. 3040.04Default calculation and records
    5. 3040.05Loans and the use of trust property
    6. 3040.06Managing a non-grantor trust
    7. 3040.07Investments of a non-grantor trust
  6. ¶ 3050Transfers, Migration and the Transfer Taxes
    1. 3050.01Gain on transfers to a foreign trust
    2. 3050.02When grantor trust status ends
    3. 3050.03Transfers to a Belize LLC or company
    4. 3050.04Migration of a domestic trust
    5. 3050.05Pre-immigration trusts
    6. 3050.06Gift tax: when the gift is complete
    7. 3050.07Choosing completeness
    8. 3050.08Estate tax inclusion
    9. 3050.09Reporting of transfers
  7. ¶ 3060Forms 3520 and 3520-A
    1. 3060.01The statutory scheme
    2. 3060.02Form 3520, Part I: transfers
    3. 3060.03Form 3520, Part II: the United States owner
    4. 3060.04Form 3520, Part III: distributions
    5. 3060.05Form 3520, Part IV: foreign gifts
    6. 3060.06Form 3520-A
    7. 3060.07The United States agent
    8. 3060.08Due dates
    9. 3060.09The substitute Form 3520-A
    10. 3060.10Penalties
  8. ¶ 3070Accounts, Assets and Entities: FBAR, Form 8938 and the Entity Returns
    1. 3070.01The FBAR
    2. 3070.02Financial interest through a trust or LLC
    3. 3070.03Signature authority
    4. 3070.04FBAR penalties
    5. 3070.05Form 8938
    6. 3070.06Form 8938 and the foreign grantor trust
    7. 3070.07Form 8858
    8. 3070.08Form 8865
    9. 3070.09Form 5471 and the controlled foreign corporation rules
    10. 3070.10Transfers to foreign corporations
  9. ¶ 3080Investments, Non-U.S. Settlors and State Tax
    1. 3080.01Passive foreign investment companies
    2. 3080.02The excess distribution regime
    3. 3080.03Funds held through a Belize structure
    4. 3080.04Non-American settlors with American beneficiaries
    5. 3080.05Settlors who become American
    6. 3080.06Estate tax for the non-American settlor
    7. 3080.07State income tax
    8. 3080.08What Belize reports about American clients
  10. ¶ 3090Reporting Matrix, Compliance Calendar and Checklist
    1. 3090.01The forms in one place
    2. 3090.02The annual cycle
    3. 3090.03Drafting for compliance
    4. 3090.04The reporting matrix
    5. 3090.05Checklist
    6. 3090.06Closing note

Part VII: Forms and Reference

Appendix ASelected Statutory Provisions

  1. ¶ A01Introduction and Sources
    1. A01.01Purpose
    2. A01.02Sources
    3. A01.03Amendments
    4. A01.04Conventions
    5. A01.05Provisions not reproduced
    6. A01.06Finding a provision
  2. ¶ A10The Trusts Act
    1. A10.01Section 2: Definition of Trust
    2. A10.02Section 4: Proper law of Trusts
    3. A10.03Section 6: Maximum duration of a Trust and of Accumulation of Income
    4. A10.04Section 7: Validity of a Trust
    5. A10.05Section 12: Protective or Spendthrift Trusts
    6. A10.06Section 16: The Protector of a Trust
    7. A10.07Section 28: Duty to supply information and duty of confidentiality
    8. A10.08Section 30B: Duty to submit attestation report
    9. A10.09Section 59: Applications for directions
    10. A10.10Section 64(1): Interpretation in this Part
    11. A10.11Section 65B: Compulsory registration of international Trusts
    12. A10.12Section 67: Interpretation
  3. ¶ A30The Limited Liability Companies Act
    1. A30.01Section 2: Interpretation
    2. A30.02Section 33: Liability to third parties
    3. A30.03Section 34: Limited liability company as a separate legal entity
    4. A30.04Section 35: Limited liability company property
    5. A30.05Section 36: Rights of judgment creditors of a member
    6. A30.06Section 37: Fraudulent conveyance
    7. A30.07Section 38: Enforcement of judgments
    8. A30.08Section 59: Involuntary transfers
    9. A30.09Section 65(6): Emergency manager
    10. A30.10Section 94: Taxes and duties
    11. A30.11Section 96(1)–(2): Confidentiality
  4. ¶ A50The International Foundations Act
    1. A50.01Section 2(1): Interpretation
    2. A50.02Section 4: Residence of founder and beneficiary
    3. A50.03Section 35: Founder
    4. A50.04Section 49: Foreign judgments
    5. A50.05Section 53: Duress
    6. A50.06Section 58: Fiduciary duty of protector
    7. A50.07Section 79: Anti-alienation
    8. A50.08Section 82: Bankruptcy
    9. A50.09Section 83: Fraudulent dispositions within the jurisdiction of Belize
    10. A50.10Section 97: Foundation as a separate legal entity
    11. A50.11Section 98: Limitation of proceedings
    12. A50.12Section 101: Payment into Court Registry
  5. ¶ A70The Insolvency and Bankruptcy Act 2025
    1. A70.01Section 8: Meaning of “insolvent”
    2. A70.02Section 416: Interpretation of this Part
    3. A70.03Section 418: Undervalue transactions
    4. A70.04Section 421: Orders in respect of voidable transactions
    5. A70.05Section 470: Actions to avoid acts detrimental to creditors
  6. ¶ A80Other Statutes
    1. A80.01Bankruptcy Act, section 43: Avoidance of voluntary settlements
    2. A80.02Interpretation Act, section 27: Reference to repealed provisions
    3. A80.03Interpretation Act, section 41: Date Act comes into force

Appendix BModel Belize International Trust Deed

  1. ¶ B01Introduction and Use
    1. B01.01Purpose of the appendix
    2. B01.02How the form is presented
    3. B01.03Law stated
    4. B01.04The structure the deed assumes
    5. B01.05Before the deed is signed
    6. B01.06The registration clock
    7. B01.07Express choice of Belize law
    8. B01.08Section 7 and the insolvency reading
    9. B01.09United States tax position
    10. B01.10Variants and related forms
  2. ¶ B10The Deed: Parties, Recitals and Definitions
    1. B10.01Heading and parties
    2. B10.02Notes on the parties
    3. B10.03Notes on Article 1
    4. B10.04Clause 1.4
  3. ¶ B20Articles 2 to 5: Proper Law, Purposes, Registration and Irrevocability
    1. B20.01Notes on Article 2
    2. B20.02Notes on Article 3
    3. B20.03Notes on Article 4
    4. B20.04Notes on Article 5
  4. ¶ B30Articles 6 to 10: Additions, Beneficiaries, Discretions, the Settlor and Protective Trusts
    1. B30.01Notes on Article 6
    2. B30.02Notes on Article 7
    3. B30.03Notes on Article 8
    4. B30.04Notes on Article 9
    5. B30.05Notes on Article 10
  5. ¶ B40Articles 11 to 14: Appointment on Other Trusts, the Trust Period and Succession
    1. B40.01Notes on Article 11
    2. B40.02Notes on Article 12
    3. B40.03Notes on Article 13
    4. B40.04Notes on Article 14
  6. ¶ B50Articles 15 to 17: The Trustee, Administrative Powers and Foreign Orders
    1. B50.01Notes on Article 15
    2. B50.02Notes on Article 16
    3. B50.03Notes on Article 17
  7. ¶ B60Articles 18 to 20: Duress, Change of Proper Law and the Protector
    1. B60.01Notes on Article 18
    2. B60.02Notes on Article 19
    3. B60.03Notes on Article 20
  8. ¶ B70Articles 21 to 26: Wishes, Information, Liability, Variation, Tax and Execution
    1. B70.01Notes on Article 21
    2. B70.02Notes on Article 22
    3. B70.03Notes on Article 23
    4. B70.04Notes on Article 24
    5. B70.05Notes on Article 25
    6. B70.06Notes on Article 26
  9. ¶ B80Schedules and Variants
    1. B80.01Notes on the Schedules
    2. B80.02Variant A: a non-United States settlor
    3. B80.03Variant B: a private trust company as trustee
    4. B80.04Notes on Variant B
    5. B80.05Variant C: a purpose trust holding the shares of the private trust company
    6. B80.06Notes on Variant C
  10. ¶ B90Completing the Deed, Registration and Funding
    1. B90.01The choices the drafter must make
    2. B90.02Registration and funding checklist
    3. B90.03Related forms and checklists

Appendix CModel LLC Operating Agreement

  1. ¶ C01Introduction and Use
    1. C01.01What this appendix contains
    2. C01.02Sources
    3. C01.03How the Act shapes the agreement
    4. C01.04What the models do not do
    5. C01.05Defined terms
    6. C01.06Placeholders and alternatives
    7. C01.07Governing law and forum
    8. C01.08Using the models with the rest of the structure
  2. ¶ C10Model A: Articles of Organisation
    1. C10.01Formation through the registered agent
    2. C10.02Required contents
    3. C10.03Notes to the articles
    4. C10.04What goes in the articles and what stays in the agreement
    5. C10.05Formation documents delivered with the articles
  3. ¶ C20Model A: Operating Agreement, Articles 1 to 6
    1. C20.01The case Model A serves
    2. C20.02Notes to Article 1
    3. C20.03Notes to Article 2
    4. C20.04Notes to Article 3
    5. C20.05Notes to Article 4
    6. C20.06Notes to Article 5
    7. C20.07Notes to Article 6
  4. ¶ C30Model A: Operating Agreement, Articles 7 to 12
    1. C30.01Notes to Article 7
    2. C30.02Notes to Article 8
    3. C30.03Notes to Article 9
    4. C30.04Notes to Article 10
    5. C30.05Notes to Article 11
    6. C30.06Notes to Article 12
  5. ¶ C40Model B: Formation, Members and Capital
    1. C40.01The case Model B serves
    2. C40.02Notes to Article B1
    3. C40.03Notes to Article B2
    4. C40.04Notes to Article B3
    5. C40.05Notes to Article B4
  6. ¶ C50Model B: Distributions, Management and Transfers
    1. C50.01Notes to Article B5
    2. C50.02Notes to Article B6
    3. C50.03Notes to Article B7
    4. C50.04Notes to Article B8
  7. ¶ C60Model B: Exit, Succession, Dissolution and Disputes
    1. C60.01Notes to Article B9
    2. C60.02Notes to Article B10
    3. C60.03Notes to Article B11
    4. C60.04Notes to Article B12
    5. C60.05The default rules the models vary
  8. ¶ C70Riders
    1. C70.01Use of the riders
    2. C70.02Notes to Rider 1
    3. C70.03Notes to Rider 2
    4. C70.04Notes to Rider 3
    5. C70.05Notes to Rider 4
  9. ¶ C80Schedules, Joinder and Consents
    1. C80.01Schedules
    2. C80.02Notes to the schedules
    3. C80.03Notes to the joinder
    4. C80.04Notes to the trustee's resolution and the protector's consent
  10. ¶ C90Filing and Execution Checklist
    1. C90.01Order of steps

Appendix DModel Foundation Charter and By-Laws

  1. ¶ D01Introduction and Use
    1. D01.01Purpose
    2. D01.02Two documents
    3. D01.03Neither document is private from the Registry
    4. D01.04The statutory frame the model respects
    5. D01.05The Commission's sample charter
    6. D01.06Conventions
    7. D01.07How the parts fit
  2. ¶ D10The Charter: Articles 1 to 8
    1. D10.01Heading and recitals
    2. D10.02Article 1
    3. D10.03Drafting note to Article 1
    4. D10.04Article 2
    5. D10.05Drafting note to Article 2
    6. D10.06Article 3
    7. D10.07Drafting note to Article 3
    8. D10.08Article 4
    9. D10.09Drafting note to Article 4
    10. D10.10Article 5
    11. D10.11Drafting note to Article 5
    12. D10.12Article 6
    13. D10.13Drafting note to Article 6
    14. D10.14Article 7
    15. D10.15Drafting note to Article 7
    16. D10.16Article 8
    17. D10.17Drafting note to Article 8
  3. ¶ D30The Charter: Articles 9 to 17 and Execution
    1. D30.01Article 9
    2. D30.02Drafting note to Article 9
    3. D30.03Article 10
    4. D30.04Drafting note to Article 10
    5. D30.05Article 11
    6. D30.06Drafting note to Article 11
    7. D30.07Article 12
    8. D30.08Drafting note to Article 12
    9. D30.09Article 13
    10. D30.10Drafting note to Article 13
    11. D30.11Article 14
    12. D30.12Drafting note to Article 14
    13. D30.13Article 15
    14. D30.14Drafting note to Article 15
    15. D30.15Article 16
    16. D30.16Drafting note to Article 16
    17. D30.17Article 17
    18. D30.18Drafting note to Article 17
    19. D30.19Execution
    20. D30.20Drafting note to the execution block
  4. ¶ D50The By-Laws
    1. D50.01Function of the by-laws
    2. D50.02By-Law 1: status and adoption
    3. D50.03By-Law 2: beneficiaries
    4. D50.04By-Law 3: distributions
    5. D50.05By-Law 4: council procedure
    6. D50.06By-Law 5: the protector
    7. D50.07By-Law 6: succession
    8. D50.08By-Law 7: information
    9. D50.09By-Law 8 and the letter of wishes
    10. D50.10By-Law 9: dissolution and residual beneficiaries
    11. D50.11Execution of the by-laws
  5. ¶ D80Variants
    1. D80.01Three variants
    2. D80.02Variant A: charitable or purpose foundation
    3. D80.03Variant B: foundation owning a private trust company
    4. D80.04Variant C: foundation holding a Belize LLC
  6. ¶ D90Registration, Funding and Filings
    1. D90.01Sequence
    2. D90.02Before execution
    3. D90.03Execution and registration
    4. D90.04Funding
    5. D90.05Annual and event-driven filings
    6. D90.06Ongoing administration

Appendix EForms: Registrations, Resolutions, Protector Instruments and Court Applications

  1. ¶ E01Introduction and Use
    1. E01.01Purpose of the appendix
    2. E01.02How the forms are presented
    3. E01.03Prescribed forms
    4. E01.04Law stated and review
    5. E01.05Execution
    6. E01.06Index
  2. ¶ E10Forming and Funding a Trust: Forms E-1 to E-6
    1. E10.01The order of the instruments
    2. E10.02Notes on Form E-1
    3. E10.03Notes on Form E-2
    4. E10.04Notes on Form E-3
    5. E10.05Notes on Form E-4
    6. E10.06Notes on Form E-5
    7. E10.07Notes on Form E-6
  3. ¶ E20Administering a Trust: Forms E-7 to E-12
    1. E20.01The administrative record
    2. E20.02Notes on Form E-7
    3. E20.03Notes on Form E-8
    4. E20.04Notes on Form E-9
    5. E20.05Notes on Form E-10
    6. E20.06Notes on Form E-11
    7. E20.07Notes on Form E-12
  4. ¶ E30Duress, Change of Law and the Court: Forms E-13 to E-16
    1. E30.01When the forms are used
    2. E30.02Notes on Form E-13
    3. E30.03Notes on Form E-14
    4. E30.04Notes on Form E-15
    5. E30.05Notes on Form E-16
  5. ¶ E40Limited Liability Company Forms: Forms E-17 to E-20
    1. E40.01Scope
    2. E40.02Notes on Form E-17
    3. E40.03Notes on Form E-18
    4. E40.04Notes on Form E-19
    5. E40.05Notes on Form E-20
  6. ¶ E50Foundation Forms: Forms E-21 to E-24
    1. E50.01Scope
    2. E50.02Notes on Form E-21
    3. E50.03Notes on Form E-22
    4. E50.04Notes on Form E-23
    5. E50.05Notes on Form E-24
  7. ¶ E60Company and Private Trust Company Forms: Forms E-25 and E-26
    1. E60.01Scope
    2. E60.02Notes on Form E-25
    3. E60.03Notes on Form E-26
  8. ¶ E70Index of Forms and Keeping the Record
    1. E70.01The index
    2. E70.02Where each executed form goes
    3. E70.03Retention
    4. E70.04Annual review

Appendix FChecklists and Filing Calendar

  1. ¶ F01Using the Checklists and the Calendar
    1. F01.01Purpose
    2. F01.02Sources
    3. F01.03Assumptions
    4. F01.04Statutory deadlines and internal deadlines
    5. F01.05Fees and rates
    6. F01.06How to use the lists
  2. ¶ F10The International Trust
    1. F10.01Before signature
    2. F10.02Execution, funding and registration
    3. F10.03Annual administration
    4. F10.04Event-driven filings
    5. F10.05Migrating a trust into Belize
    6. F10.06Migrating a trust out of Belize
    7. F10.07Termination
    8. F10.08Purpose and charitable trusts
  3. ¶ F30The Limited Liability Company
    1. F30.01Formation
    2. F30.02Creditor-protection design
    3. F30.03Annual administration
    4. F30.04Reviewing an LLC formed before 2023
    5. F30.05A creditor's claim against a member's interest
    6. F30.06Dissolution and winding up
  4. ¶ F50The Foundation
    1. F50.01Before execution
    2. F50.02Execution and registration
    3. F50.03Funding
    4. F50.04Annual and event-driven obligations
    5. F50.05A foreign order or claim
    6. F50.06Dissolution and striking off
  5. ¶ F60The Private Trust Company
    1. F60.01Set-up
    2. F60.02Annual and event-driven obligations
  6. ¶ F70Responding to a Creditor's Threat
    1. F70.01Scope
    2. F70.02The fiduciary's first response
    3. F70.03Proceedings in Belize
    4. F70.04Proceedings abroad
    5. F70.05The client at home
  7. ¶ F80The Belize and United States Compliance Calendar
    1. F80.01Arrangement
    2. F80.02Use with the vehicle lists
    3. F80.03Notes on the calendar

Appendix GGlossary

  1. ¶ G01Introduction and Conventions
    1. G01.01Scope
    2. G01.02Conventions
    3. G01.03Insolvency
    4. G01.04Terms defined differently in different statutes
  2. ¶ G10A–B
  3. ¶ G20C
  4. ¶ G30D–E
  5. ¶ G40F–G
  6. ¶ G50H–I
  7. ¶ G60L–M
  8. ¶ G70N–P
  9. ¶ G80R–S
  10. ¶ G90T–Z