The Belize exempt trust with asset protection provisions is increasingly being used in addressing the needs of high net worth individuals and professionals in certain ‘high risk’ categories. These include situations where there has been an unabated explosion in litigation resulting in costly malpractice indemnity insurance; indeterminate liability for negligence with resulting ruinous financial situations from an adverse judgement in a malpractice suit.
It is true that professionals in the United States have been among the most ready users of the Belize trusts as they have felt the hammer acutely; exorbitant insurance premiums, frequently high malpractice awards, a contingent fee system, and an uncontrolled tort system allowing juries to determine the quantum of damages. All these continue to bedevil doctors, lawyers, engineers, architects and a host of other professionals. Simply by putting assets into a Belize trust a settlor can interpose the laws of Belize between himself and an attacker, whether the attacker be a former spouse, heir or creditor. The trust forces the attacker to litigate in Belize, even though the assets may not be, and usually are not, in Belize. Also attractive to the user is the fact that the situs of the trust may be changed at will. Users of the Belize trust have come to realize that the existence of such a trust tends to alter the creditor’s avenues of legal recourse by forcing him to consider two different legal systems with different sets of laws and to retain and pay two sets if lawyers to advise him.