A Belize foundation is a great way to safeguard your assets for the future while avoiding taxes. Similar to a private trust, an offshore foundation is created to safeguard assets for the future benefit of a beneficiary. However, unlike the private trust, the assets placed in an offshore foundation don’t belong to any one person, but to the foundation as a legal entity.
An offshore foundation is bound by the rules set out in its charter or by-laws. Its administrative decisions are made by a council appointed by the founder. All assets placed in the foundation are independent of the founder or beneficiaries.
Here are some beneficial uses of a Belize foundation.
Succession and Estate Planning
A foundation is a great substitute for a will in succession and estate planning. Similar to a trust, a Belize foundation can safeguard assets for a beneficiary. Because an offshore trust is a separate legal entity from its founder, all assets placed in the trust is no longer associated with any one person. Thus the assets remain safe and unattainable to any seizures by the government or courts. The assets of the trust are only transferrable to the stated beneficiary and cannot be used for any other purpose.
Since Belize foundations are non-taxable, any estate, gift, or property taxes that may have been levied upon the assets, if they were placed in a will, would not be applied upon transfer from the foundation to the beneficiary.
Also, by using an offshore foundation to safeguard assets for your heirs, you can avoid forced heirship laws that may be in place in your home jurisdiction. The rules set out in a Belize foundation will be honored at the time of your passing despite any heirship rules in your local jurisdiction.
Pension Funds
An international foundation can be used as a vehicle to set up and maintain a pension scheme for a company or organization. Foundations are ideal for this as it keeps all the funds in the pension scheme well accounted for but independent from any one owner until the time of retirement for each pensioner. Also, having the ability to amend the by-laws as necessary makes it easy to add and remove pensioners.
Charitable Purposes
Belize foundations are the most suitable legal entity for safeguarding funds for your charity. By creating an offshore foundation, you can not only ensure your charity receives your donation, but also ensure that there is continuity in donations for your charity’s cause. The by-laws allow for rules to be set for an infinite amount of time, so even after your passing the purpose of the foundation does not change and the foundation’s council can still maintain it for the charity’s continued benefit.
Asset Protection
A Belize foundation is an asset protection and wealth management alternative to the Belize IBC. Offshore foundations allow investors to transfer ownership of their assets into a completely separate legal entity to avoid any loss due to personal liabilities, while still maintaining control over how the assets are managed and distributed.
This is possible because the founder has the power to amend the foundation’s by-laws as well as appoint or remove any member of the foundation’s council.
Consult a Belize foundation specialist, to find out how an offshore foundation in Belize can work for you.
