Proper law of Trusts

(1) Subject to sub-section (4), the proper law of a trust shall be– (a) the law expressed by the terms of the trust or intended by the settlor to be the proper law; (b) if no such law is expressed or intended, the law with which the trust has its closest connection at the time of its creation; or (c) if the law expressed by the terms of the trust or intended by the settlor to be the proper law, or the law with which the trust has its closest connection at the time of its creation, does not provide for trusts or the category of trusts involved, then the proper law of the trust shall be the law of Belize. (2) In ascertaining the law with which a trust has its closest connection, reference shall be made in particular to– (a) the place of administration of the trust designated by the settlor; (b) the sites of the assets of the trust; (c) the place of residence or business of the trustee; and (d) the objects of the trust and the places where they are to be fulfilled. (3) The terms of a trust may provide for a severable aspect of the trust, particularly the administration of the trust, to be governed by a different law from the proper law of the trust. (4) The terms of a trust may provide for the proper law of the trust or the law governing a severable aspect of the trust to 10 be changed from the law of one jurisdiction to the law of another (5) Where the proper law of a trust or the law governing a severable aspect of a trust is changed from the law of another jurisdiction, here called “the old law”, to the law of Belize, no provision of the old law shall operate so as to render the trust void, invalid or unlawful or to render void, invalid or unlawful any functions conferred on the trustee under the law of Belize. (6) Where the proper law of a trust or the law governing a severable aspect of a trust is changed from the law of Belize to the law of another jurisdiction, here called “the new law”, no provision of the law of Belize shall operate so as to render the trust void, invalid or unlawful or to render void, invalid or unlawful any functions conferred on the trustee under the new law.