This post is also available in: Spanish
By: Staff at Panama Offshore Legal Services
E-Mail: firstname.lastname@example.org || Phone: (507) 227 – 6645
Did you know that foundations are not only for charities? While it does hold true in most countries, Panama has a unique law allowing for the creation of Private Interest Foundations, a hybrid between a corporation and a trust.
The advantage of a Private Foundation is that individuals can place their assets under the protection of a legal entity, which holds title to the assets. For a couple like Colleen and Glenn from Ireland, that means they can create a foundation with their heirs as the beneficiaries who will control the foundation when Glenn and Colleen pass away. Children of the beneficiaries become the new beneficiaries and this changing of the guard can continue for future generations.
Glenn and Colleen have moved to Panama with their two minor children and plan to remain for a long time. Their Panama Foundation provides their family with the following benefits:
Avoiding Probate. Probate can be very expensive in Panama and take many years. Foundation assets don’t go through probate. Control shifts to the beneficiaries quickly and cheaply.
Asset Protection. Because their foundation can own all shares of corporations, bank accounts, investment accounts, real estate, or any other asset, this protects Glenn and Colleen from personal injury liability.
Privacy. Since their foundation owns all their assets, Glenn and Colleen can enjoy complete anonymity in their financial affairs. A Panama Foundation can be useful in transferring funds offshore or receiving funds from offshore. Some people donate their funds to their Panama Foundation, which later gives educational or special grants to their children, grandchildren, or anyone else they choose.
Private Foundations are tailored to the client’s wishes, which is why it is important to consult with a Panama lawyer who knows the Panama Foundation laws.