Estate Planning in Belize helps you establish how and when you wish to leave behind your assets after death, which can prevent disagreements among family members and prevent potential disputes over what’s been left.
Probate is the legal process by which courts distribute an estate of a deceased individual after death. Our Belize probate attorneys regularly handle these proceedings for individuals who die without wills or with wills in Supreme Court of Belize.
The Importance of Estate Planning
After someone passes, their loved ones must decide how best to distribute their belongings. A will is often created so as to distribute assets according to the wishes of a deceased individual and avoid disputes over his/her estate, as it allows for clear and consistent distribution. Estate planning also has other benefits like protecting assets against lawsuits and taxation.
Trusts are legal arrangements among three to four parties (settlor(s), trustee, and beneficiaries) wherein one or more assets are given over to be managed on behalf of beneficiaries by trustee for their benefit. A trust document sets forth its purposes, objectives, powers, duties, and obligations of its trustee – often used by high net-worth individuals for asset protection, estate planning, wealth preservation, intergenerational wealth transfer.
Belize is one of the leading jurisdictions for offshore trust formation due to its stringent asset protection laws and high level of privacy and confidentiality provided by these trusts. Furthermore, they can even help reduce or even eliminate taxes in various countries around the globe.
Belize trusts offer another key advantage: protection from Mareva injunctions. Since they are legally separate from their settlors and beneficiaries, creditors often struggle to obtain court orders freezing trust assets from creditors seeking a court order freezing assets within. Belize trusts also remain exempt from foreign court orders related to marital divorce proceedings, suits over succession rights for spouses or relatives and claims from creditors in an insolvency proceeding.
No matter the size or value of your estate, taking time to plan a will is always worthwhile. Our experienced attorneys can assist in creating one tailored specifically to your personal circumstances and goals while protecting it in case of incapacitation or death. Reach out now to learn more about creating wills and trusts in Belize!
Creating a Will
No matter their wealth, it is crucial for every adult to create a will that specifies their wishes after death regarding their belongings – from bank accounts and investments, personal property, real estate and artwork, burial/cremation arrangements and burial/cremation preferences. In addition, an executor should be appointed who can manage their estate after their passing; someone trustworthy who will carry out your wishes. Appointing an estate planning lawyer would also be helpful.
In Belize, Wills must be written down and signed by both the Testator (person making the will) and two witnesses, before being filed with a court within 30 days after death of the deceased. Once approved by court, estate assets can be distributed as per succession law.
Many individuals put off creating a will because they believe their assets don’t warrant it, are unwilling to deal with death and have misguided assumptions about its process. Unfortunately, ignoring it will likely only lead to family disputes over assets and delays in dispersing an estate; and failure can result in government taking part of that estate from an individual’s estate.
When someone dies in Belize, their estate will be administered by either an Administrator (male) or Administratrix (female). They must apply to the High Court for a Grant of Administration before administering assets of their estate and dispersing them among beneficiaries.
An estate plan can reduce taxes and costs significantly, such as trusts in Belize that are exempt from income, business and transfer taxes. Furthermore, Belizean trusts offer excellent protection from creditor claims due to Mareva injunctions being prioritized over Belizean asset protection laws. Furthermore, Belize’s global recognized jurisdiction can help shield international assets from domestic taxation; but any assets held must be located beyond creditors’ reach.
Creating a Trust
Establishing a trust is an easy and cost-effective way to safeguard your assets in Belize. Trusts provide important advantages in estate planning as they help prevent family members from fighting over them, reduce court delays and save on taxes while helping your family save on expenses related to estate expenses.
Trust is a fiduciary relationship involving three to four parties: the settlor, trustee and beneficiaries (in some cases also a protector). The assets from the settlor are placed into the trust, which are then managed by its trustee according to its trust deed terms. As specified by this document, its trustee must then distribute assets equally among beneficiaries as per its mandate.
Making and updating a will are essential steps towards protecting your assets according to your wishes and preventing disputes between family members. A will should also reflect changes in your situation over time to mitigate any future potential problems that could arise from assets not distributed as desired.
If you want to safeguard your assets against lawsuits, Belize provides an option to establish a private foundation. Foundation endowments are protected from creditors and domestic legal proceedings; moreover, their operations cannot be interfered with by family members of either founders or beneficiaries.
Belize is an attractive jurisdiction for international investors due to its pro-business policies and low income tax rates, making it an attractive location to invest. Furthermore, its currency remains secure while boasting one of the strongest asset protection laws available worldwide.
When establishing an offshore trust, it’s essential that it adheres to the relevant jurisdiction. A professional attorney in Belize can help you establish one in accordance with Belizean law as well as assist with creating and signing off on a trust deed document.
Creating a Power of Attorney
Establishing a power of attorney is one of the best ways to sidestep probate, a legal process that determines how your estate will be distributed after death. By designating someone as your agent in creating one of these legal instruments, they can manage your affairs and make decisions on your behalf if you become incapacitated or incapacitating yourself. A trusted spouse or close family member could serve as your agent. Alternatively, you could split responsibility among multiple agents, or create different types of powers of attorney such as giving one person financial responsibilities while giving another person power over medical decisions as an example.
If you pass away without leaving a will in Belize, state law will govern how your assets will be divided among your beneficiaries, often leading to lengthy and complicated proceedings. A will can help avoid disagreement among relatives and potential heirs by clearly outlining your wishes; additionally it reduces costs and times spent by bypassing probate processes.
Working with a professional to create your will and other estate planning documents is highly recommended. They can offer guidance regarding Belizean law requirements and ensure your documents are valid and effective, in addition to regularly reviewing them to reflect your changing circumstances and intentions.
Whoever wishes to avoid probate may establish an asset protection trust in Belize. Doing so allows them to circumvent the public record created by probate proceedings and increase confidence that their assets will be distributed exactly according to their wishes after death. Furthermore, an asset protection trust reduces time and expense of transferring your assets as only those assets outside the trust require probate proceeding.
Establishing an offshore trust requires the assistance of an experienced lawyer. A Belize trust law specialist can assist in creating a trust deed that meets both your objectives and Belize law; additionally they will register your trust with the government and pay any required fees to officially set it up.
