B. TYPES OF TRUSTS IN BELIZE
(1.) Belize Discretionary Trusts
Discretionary trusts offer wide discretionary powers are given to the trustees in terms of distributions made to the beneficiaries. Most offshore trusts are set up in this way so that beneficiaries only have a contingent interest so avoid any tax liability until such time as any distribution is made to them.
(2.) Belize Fixed Trusts
Fixed trusts vest all or part of the trust fund in a beneficiary either immediately or at some future time or on the happening of a future event.
(3.) Belize Accumulation and Maintenance Trusts
Accumulation and maintenance trusts accumulate income by the trustees and add to the trust capital with distribution being made from time to time for the maintenance of the beneficiaries.
(4.) Protective or Spendthrift Trusts
Belize allows protective or spendthrift trusts containing provisions to protect a beneficiary against insolvency, bankruptcy or legal judgments.
(5.) Charitable Trusts
In Belize, Charitable trusts are formed for charitable community purposes inside or outside of Belize the categories as follows: “the relief of poverty; the advancement of education, the advancement of religion, the protection of the environment, the advancement of human rights and fundamental freedoms, and any other purposes which are beneficial to the community.”
(6.) Non-Charitable Purpose Trusts
Non-charitable purpose trusts are allowed in Belize law if the purpose is specific, reasonable and fulfillment is possible. The purpose must not be immoral or unlawful or contrary to public policy and trust must provide for a protector to be appointment. This protector must be capable of enforcing the trust and appointing a successor. If the Attorney General has reason to believe that no protector exists or that the protector in place is not fulfilling his/her duties, the Attorney General may appoint a protector to the trust that has powers to exercise the necessary functions of the protector beginning on the appointment date.[2]
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[1] Id. § 14.
[2] Id. § 15.
