Prosper International League Limited
Off Shore Financial Trusts

PROSPER WITH P.I.L.L.

BULLETIN!!!!

More Information

More Questions That Relate to the Trust Formation

Q - HOW IS THE "INTEREST" OF A BENEFICIARY CLASSIFIED AND DEALT WITH?
A. The "interest" is classified as "personal property" and can be sold, traded, charged, or otherwise dealt with in any manner whatsoever.

Q - WHO MAY BE THE SETTLOR?
A. Any person who has, under the law of Belize, the capacity to own and transfer property may be the SETTLOR of the Trust. The SETTLOR may also be the TRUSTEE, BENEFICIARY or PROTECTOR; although this is not recommended.

Q - DOES THE SETTLOR HAVE TO LIVE IN BELIZE?
A. No. The SETTLOR cannot be a resident of Belize to comply with the "exempt" ruling.

Q - WHAT ARE THE SETTLOR'S DUTIES ONCE THE TRUST IS FORMED?
A. The SETTLOR's position is this: He is the person who initially wants to settle the Trust. He contracts with the TRUSTEE to accept his initial contribution of money into the Trust in exchange for the Trust Certificate Units (TCUs). He then issues a letter of wishes for the distribution of the TCUs to the BENEFICIARY. After that, the SETTLOR steps out of the picture. He no longer has any active management duties or ties to the Trust funds.

Q - WHO MAY BE THE TRUSTEE?
A. Any person who has, under the law of Belize, the capacity to own and transfer property, may be the TRUSTEE of the Trust. The TRUSTEE may also be a corporate or artificial entity. The TRUSTEE may also be the SETTLOR, BENEFICIARY or PROTECTOR.

Q - DOES THE TRUSTEE HAVE TO LIVE IN BELIZE?
A. No. The Trust document specifically states that the TRUSTEE does not have to be a resident of Belize.

Q - WHAT ARE THE TRUSTEE'S DUTIES ONCE THE TRUST IS FORMED?
A. Once the Trust if formed, the TRUSTEE has the daily duty of maintaining the Minutes concerning any activity of the Trust. If the Trust decides to purchase or sell some of it's assets, these things must be recorded in the Minutes of the Trust. If the TRUSTEE should so choose, he may decide to delegate some of the day-to-day operations of maintaining the Trust to another person called the General Director or the General Trust Manager. If no other person is appointed, the TRUSTEE retains those duties.

Q - IS THE TRUSTEE LIABLE FOR ANY MISTAKES OR BAD JUDGMENTS OF THE TRUST FUNDS?
A. No, not really. As long as the TRUSTEE can show reasonable care in selecting his options and making decisions, he is not personally responsible to the Trust for any shortcomings from those bad judgments.

Q - WHAT IS THE MINIMUM AND MAXIMUM NUMBER OF TRUSTEES ALLOWED?
A. At least one (1) and not more than four (4) TRUSTEES.

Q - WHO MAY BE THE BENEFICIARY?
A. A BENEFICIARY may be identified by name or by reference to a relationship to some other person, whether living or not at the time of creation of the Trust. A BENEFICIARY may also be a certain "class" of individuals. A BENEFICIARY may also be the SETTLOR, TRUSTEE OR PROTECTOR; although this is not recommended.

Q - DOES THE BENEFICIARY HAVE TO LIVE IN BELIZE?
A. No, in fact, the BENEFICIARY cannot live in Belize.

Q - WHAT IS THE BENEFICIARY'S OBLIGATIONS OR RIGHTS ONCE THE TRUST IS FORMED?
A. Since the Trust assets are not yet vested in the BENEFICIARY, he has no voice in the management or the day-to-day operations of the Trust. This is also because of it being a "spendthrift" type of Trust which is designed to protect the BENEFICIARY more than a normal type of Trust. The BENEFICIARY does, however, have "Interest Bearer Shares" that can be traded, put up as collateral, sold, or dealt with in any manner whatsoever. This does give the BENEFICIARY some present benefit of being a BENEFICIARY.

Q - CAN A BENEFICIARY BE REPLACED ONCE APPOINTED?
A. Yes. The TRUSTEE reserves the right to replace or appoint additional BENEFICIARIES at will. Most offshore Trusts have this stipulation that people are not aware of. The Protector may also perform this function.

Q - ARE THERE ANY ADDITIONAL RIGHTS OR POWERS DUE A SHARE HOLDER?
A. The BENEFICIARY may give to the TRUSTEE, a letter of wishes with regard to the exercise of any functions conferred on the TRUSTEE by the terms of the Trust. But remember, the TRUSTEE does not have to respect those wishes and will not be accountable in any way for his failure or refusal to do so. Without the BENEFICIARIES being vested of Trust assets, they have no further obligations or powers until such time as the assets are distributed.

Q -WHAT HAPPENS TO THE BENEFICIARY's RIGHTS UPON HIS DEATH?
A. Any rights bestowed upon the BENEFICIARY because of his holding any Interest Bearer Shares, will terminate upon his death unless a "Transfer Of Beneficial Interest Upon Death" form is on file with the Board of Trustees.

Q - HOW DOES A BENEFICIARY ARRANGE TO HAVE THAT FORM ON FILE?
A. The BENEFICIARY simply needs to request a form from the Board and complete it as soon as possible thereafter. The BENEFICIARY shall appoint whomever they shall choose to fill the position of Successor-Beneficiary. Once that form is on file, the transfer of rights is automatic upon the death of the BENEFICIARY.

Q - WHO IS THE PROTECTOR?
A. P.I.L.L. is the PROTECTOR of the Trust.

Q - WHAT IS THE FUNCTION OF THE PROTECTOR AFTER THE TRUST IS FORMED?
A. The PROTECTOR's job is to watch over the TRUSTEE and make sure they perform their role as per the wishes of the SETTLOR. The PROTECTOR has the power to remove and/or appoint a new or additional TRUSTEE. The PROTECTOR may also be the SETTLOR, TRUSTEE or the BENEFICIARY.

Q - CAN THE PROTECTOR FIRE A TRUSTEE FOR NO REASON?
A. Yes. The PROTECTOR can get rid of a TRUSTEE if this becomes advisable.

Q - DOES THE PROTECTOR HAVE TO LIVE IN BELIZE?
A. No. In fact, the PROTECTOR cannot live in Belize in order to satisfy the requirement of being an "exempt" Trust.

Q - WHAT IS A GENERAL TRUST MANAGER OR A GENERAL DIRECTOR?
A. These are different titles that refer to the same basic position. At any time, the TRUSTEE may choose to delegate the day-to-day duties of managing the Trust Estate to a qualified TRUSTEE or a qualified non-trustee. The title of that person may be the General Trust Manager or General Director. An independent contractor relationship shall exist for the position to take effect.

Q - DOES THE GENERAL TRUST MANAGER HAVE TO LIVE IN BELIZE?
A. No. There is no residency requirement for the GTM or the GD.

Q - WHAT ARE THE ON-GOING DUTIES OF THE GENERAL TRUST MANAGER ONCE THE TRUST IS FORMED?
A. If the position of the GTM or GD has been established, it is assumed that they will have full control of the day-to-day operations of the entire Trust Estate, including, but not limited to operating the checking account

Q - WHY IS AN INDEPENDENT CONTRACTOR AGREEMENT NECESSARY FOR THE POSITION OF GENERAL TRUST MANAGER?
A. This is so that the Trust does not have to establish an employer-employee relationship, thus saving the expense of paying unemployment taxes and workmen's compensation taxes.

Q - CAN ANY OF THE OFFICERS HOLD MORE THAN ONE POSITION IN THE TRUST STRUCTURE?
A. Yes, as noted above, all the positions: SETTLOR, TRUSTEE, BENEFICIARY and PROTECTOR can be held by one (1) person or entity.

Q - CAN AN OFFICER RECEIVE COMPENSATION FOR MORE THAN ONE POSITION?
A. Yes, the Trust Indenture allows for remuneration for a Trust officer holding more than one position within the structure. Q - BECAUSE CERTAIN TRUST OFFICERS ARE VESTED OF THE INTEREST OF THE TRUST ASSETS, DOES THAT MAKE THE TRUST ASSETS A PART OF THEIR INDIVIDUAL ESTATE?
A. No! Under no circumstances are the assets of the Trust Estate to be included in the estate of the Trust officers, individually or separately.

Q - IF A TRUSTEE BECOMES INSOLVENT OR HIS PROPERTY IS LIABLE TO DISTRAINT, SEIZURE OR SIMILAR ACTION, CAN THE CREDITORS ATTACH TRUST ASSETS?
A. Absolutely not! The Trust is a distinct and separate entity, apart from the TRUSTEE's personal estate.

Q - CAN A MULTI-LAYERED STRUCTURE BE SET UP WITH A BELIZEAN TRUST?
A. Absolutely! There are numerous ways to establish a multi- layered structure. The easiest is setting up a second Trust as the BENEFICIARY of the first Trust. Then setting up a third Trust as the BENEFICIARY of the second Trust. You can have one umbrella Trust having multiple subsidiaries off of that or have one of the Trusts be an underlying umbrella by being the BENEFICIARY of multiple brother-sister Trusts. Everybody has their own preferences.

Q - CAN THE BENEFICIARIES FORCE A TRUST TO TERMINATE AND DISTRIBUTE THE FUNDS?
A. Normally they could, under a Belizean Trust. But since we wanted the TRUSTEE to remain in total control, we elected to write this as a "spendthrift / protective" Trust which excludes the ability of the BENEFICIARIES to take control with a majority vote.

Q - WE ALREADY ESTABLISHED THAT THE TRUSTEE DOES NOT HAVE TO HONOR A LETTER OF WISHES FROM THE BENEFICIARIES. DOES THE TRUSTEE HAVE TO HONOR A LETTER OF WISHES FROM THE SETTLOR?
A. Again, no. The TRUSTEE has total control of the Trust Estate and does not have to report or justify to anyone, his actions, so long as he does not endanger his fiduciary relationship he has with the BENEFICIARIES.

Q - CAN I OPEN AN OFFSHORE BANK ACCOUNT WITH THIS TRUST?
A. Absolutely! You can maintain any number of accounts you feel is necessary for the proper operation of the Trust. We recommend that you form an International Business Corporation (IBC) and open a bank account in the name of the IBC.

Q - HOW MUCH DO I NEED AS A MINIMUM TO OPEN THE ACCOUNT?
A. A minimum amount of U.S. $1,000 will get you started, including any and all fees you will incur in establishing the account.

Q - WHAT FEES ARE CHARGED TO SET UP THE ACCOUNT FOR US?
A. Your Trustee will quote a fee. Usually it includes out of pocket expenses plus a nominal administrative fee.

Q - CAN I GET A CREDIT CARD TO USE IN MY OWN COUNTRY TO DRAW UPON THAT TRUST ACCOUNT?
A. Yes, we have several connections that will allow you to set up a secured credit card account whereby you keep a monthly balance in the account and draw upon it throughout the month.

Q - DOES THE TRUST NEED AN EIN OR A TIN TO OPEN THIS ACCOUNT IN IT'S NAME?
A. No. There is no identifying information necessary.

Q - IS MY SOCIAL SECURITY NUMBER REQUIRED IN ANY WAY TO OPEN THAT ACCOUNT?
A. Not at all! Your personal social security number is never required on any paperwork whatsoever to accomplish this task.

Q - HOW SAFE ARE THE FUNDS IN THE BANK?
A. Belize's economy is quite stable and we do not foresee any problems with their monetary system or we wouldn't be establishing this program at this time. We've looked at a number of Offshore countries and we are confident in having chosen Belize as our first choice.

Q - DO I STILL MAINTAIN CONTROL OVER MY FUNDS?
A. Yes, and no! Your Trustee has control! Your access is through a "Letter of Wishes."

Q - WHO HAS ACCESS TO THE TRUST FUNDS?
A. Only the TRUSTEE of that Trust will have access to the funds.

Q - FOR WHAT REASON WOULD I WANT TO "REGISTER" MY TRUST IN BELIZE?
A. I really don't know why someone would go through the trouble of establishing a private relationship through a Trust, settled in a foreign country, and then go ahead and register it with that government if they didn't have to. You may have different thoughts on this though. You have a choice.

Q - CAN I CONDUCT BUSINESS IN THE COUNTRY OF BELIZE UNDER THIS TRUST AGREEMENT?
A. No, you cannot conduct business with a Belizean resident nor may the Trust own any Belizean real property under the Trust name. There are, however, several ways to get around that by using what is known as a "flushing method" to pass funds to anyone at anytime. You really should discuss this with the Trustee. Q - CAN I CONDUCT BUSINESS IN MY OWN COUNTRY UNDER THE NAME OF THE TRUST?
A. Absolutely! Simply treat this like a real person and you will understand more of how a Trust can operate. The Trust can buy, sell and trade assets at any time or start up any new business activity that the TRUSTEE sees fit and appropriate.

Q - DO YOU OFFER AN INVESTMENT PROGRAM FOR OUR TRUST FUNDS TO OBTAIN BETTER THAN AVERAGE RATES OF RETURN?
A. Yes, most certainly! The Trustee may offer advice, but the final decision is yours. Consult with the Trustee on an individual basis for more details.

Q - WHAT IS THE EASIEST WAY TO TRANSFER A HOUSE INTO THE TRUST?
A. The easiest way is to use something similar to a "Quit-Claim" deed. This relinquishes your ownership in the real property but does not remove your obligation to the "note" in which you promised to pay the entire balance. As long as the payments are still being paid, the mortgage company should not call the note due.

Q - WHAT IS THE EASIEST WAY TO TRANSFER AN AUTOMOBILE INTO THE NAME OF THE TRUST?
A. One of the easiest ways to avoid the minimum tax on the transfer of the title is to go down to the registration / tag office and pay the small fee to "add" a name to the title. Then, you wait about 30 days and go back down and pay the fee again to "remove" your name from the title, thus leaving only the Trust name on it.

Q - HOW DO I TRANSFER PERSONAL GOODS AND HOUSEHOLD FURNISHINGS?
A. Simply use one of the "Bill of Sale" forms that is included in the Trust package. It clearly states a value and date that the transfer was made. It is made a part of the Trust documents and Minutes which become a part of the permanent record of the Trust activities.

Q - AS FOR BUSINESS TACTICS AND STRATEGIES, HOW CAN THIS BELIZE TRUST HELP ME?
TRUSTEE can borrow funds in the name of the Trust.
TRUSTEE and BENEFICIARY can borrow from the Trust.
TRUSTEE can designate third parties to hold funds in their name if necessary.
TRUSTEE can hire outside agents, etc. without previous permission.
TRUSTEE can use Trust funds to buy anything he feels is necessary, including real property and the improvements thereon.
TRUSTEE can make interest-free loans to people including the BENEFICIARY.
TRUSTEE can provide Trust property (i.e. real property) rent-free to persons if necessary.
TRUSTEE does not have to honor "letter of wishes" from either the SETTLOR or the BENEFICIARY, but he may do so.
TRUSTEE may distribute Trust funds to any one Beneficiary as necessary.
Anyone loaning or advancing funds to the Trust is not obliged to see the application thereof.
BOTTOM LINE: TRUSTEE has ALL the BENEFITS and NONE of the LIABILITIES.
He has full discretion as long as he does not jeopardize his fiduciary relationship to the BENEFICIARY.

The Introduction to P.I.L.L.