Belize Foundations – An option for your Succession Planning and Wealth Management
The structure of the Belize International Foundations is very similar to that contemplated for trusts and their administration.
The crucial difference lies in the fact that a foundation in contrast to a trust enjoys legal personality and may be set up by unilateral declaration of the founder and the assets of the foundations only need to be endowed rather than be transferred physically. For clients in civil law countries this is of importance as the concept of a trust is not validly recognized and courts may not recognize transfer of assets such as real estate into a trust but they may recognize transfers into foundations.
Some potential uses of foundations are for succession planning and wealth management, discrete structures, discretionary benefits, and charitable or non-charitable purposes.
Belize Foundations are exempt from business tax and offer a no tax haven for offshore investors. Not to mention the high level of anonymity offered by the jurisdiction and its geographical location is well placed in terms of access and international relations to other jurisdictions worldwide. A Belize Foundation is established upon proper execution of a foundation charter or equivalent document, by a founder and the members of a foundation council,
by which a founder makes a disposition of rights, title or interest in property to the foundation for a specific purpose.
In accordance to the International Foundations Act, 2010 it states that the foundation endowment shall not be subject to transfer,
encumbrance or other restraint solely because of the founder’s bankruptcy, liquidation or insolvency in any action or proceeding at suit of a bankruptcy trustee, receiver or creditor of the founder’s bankruptcy estate. The Act further provides additional protection where it concerns the subject of bankruptcy. It is established notwithstanding any foreign law, rule or regulation, the foundation shall not be void or voidable due to the fact that it is voluntary and without valuable consideration being given for a disposition to a foundation or to it being established for the benefit of the founder, or the founder’s spouse or children.
If you are seeking strong privacy protection, foreign investment opportunities that may not be available in your country,
solid advanced legislation and a tax exempt jurisdiction, get in touch with us at Zetland to receive the necessary information on the requirements for the formation of Foundations in Belize.
For further information, please feel free to contact Anju Gidwani, Director of the Belize Office (anju@zetland.biz)
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