How a Panama Private Foundation protect you ?
Why set up a Panama Private Interest foundation ?
The Panama Foundation, also know as Panama Private Interest Foundation, is a type of entity that is a cross-breed between trusts and a corporations, however, it is neither. A Panama Private Interest Foundation or PIF is an entity that is different from any other legal entity known in the Anglo-Saxon law, because it is not the legal personification of a person or group of persons (as with a companies or corporations), rather it is a legal entity that does not have owners (share-holders, participants, or partners), and it traditionally has a specific purpose for the benefit of a general group of individuals.
Private Interest Foundations were originally created in Liechtenstein, as a new legal entity that brings together the benefits of the Trusts, for asset management; with the practicality of the Corporations, for its legal existence and structure.
The Panama Private Interest Foundations (P.I.F.) were created in Panama by Law 25 of June 12th, 1995, and since then, they have become a great legal instrument both for holding and protecting assets.
Panama Private Interest Foundations cannot engage in commercial businesses, although it may own investments such as real estate, company’s stocks, or bank accounts.
The assets of a Panama private interest foundation are protected in a special way by the legislation that regulates them. By virtue of this, they cannot be seized, or be subject to any action or preventive measure.
The Panama Private Interest Foundations allow assets transfers in favor of the beneficiaries at the time of the founder’s physical disappearance. In this way, a private interest foundation can be used in replacement of a will, with the additional advantage that for its execution no succession process is required at the Courts. With this, the time and money wasted usually caused by court proceedings, are avoided.
The assets of a Panama Private Interest Foundation are independent and are not part of the founder’s patrimony. So, same as a companies or corporations, they serve as an efficient protection tool of assets and financial organization, with the additional advantage that the assets transferred to a private interest foundation are exempt from preventive measures and cannot be seized.
The founder or subscriber, to be supplied by the agent. The Founder has no control over the Foundation and its affairs, and is only recognized as the individual who file its Constitutional Charter.
The Foundation Council Members (equivalent to companies Board of Directors) Minimum one corporate member or three (3) individual, combination of corporate and individual members is also feasible. Matter of public records, It is possible to obtain nominees through the agent.
The client, requesting the set up of the structure
The beneficiaries appointed in the by laws and therefore not a matter of public record.
The protector (not mandatory), who may be a corporate body or an individual. Oversees that the foundation purposes are achieved. Its functions may be freely established in the Constitutional Charter and By Laws and in a private document.
Panama Private Interest Foundation for Estate Planning
Panama foundations offer great advantages for international estate planning, providing the ultimate in privacy, anonymity, and protection to the Protectors, Founders, and Beneficiaries of the Panama Foundation. The Panama Foundation is a solution to a global need for an affordable, anonymous, flexible, private, estate planning vehicle that can be used to hold Panama assets such as corporations, trusts, bank accounts, investment accounts, real estate, or any other type of asset around the world.
A Panama Private Interest Foundation comes into existence upon its registration in the Public Registry. No approval from any public authority is required.
A foundation in Panama can also be used for estate planning where the founder transfers title to current assets and has theFoundation acquire Panama real estate, Panama assets, and open a Panama bank account and Panama investment accounts.
A Panama Foundation provides international estate planning and asset protection by owning the shares of a Panama Corporation.