Foundation Purposes

1) Serving as beneficiary when opening and operating financial accounts. Today, due to the global scare of terrorism, most offshore tax haven jurisdictions have implemented laws that require the banks to obtain "declarations of beneficial ownership" when establishing corporate bank accounts.

In Panama, like in most offshore jurisdictions, the banks are required to maintain this information under strict confidentiality under the bank secrecy laws that are strictly enforced. However, if you do not wish to sign the declaration as the beneficial owner when establishing your corporate account, the foundation can serve as the beneficial owner for the purposes of declaration, and then it will be signed by the nominee foundation council.

2) Serving as a holding entity for the Corporation: using the foundation, you can avoid the use of bearer shares, or shares issued to your personal name. The foundation can be named as the shareholder on the share certificates of your corporation.

You can control the foundation anonymously through a Private Protectorate role. As the Protector, you can appoint the beneficiaries through a private Letter of Wishes, or a more formal set of foundation By-Laws. Since both the Protector and the Beneficiaries are both appointed through non-public (private) documents, they remain 100% anonymous and confidential.

3) Serving as a tool to facilitate the transference of funds offshore, and the repatriation of those funds back offshore. Since the foundation is a charitable entity, it may receive and give donations and grants to and from anybody he wishes. So, you can donate your funds to the foundation. In its turn, the foundation can provide educational grants, charitable donations, etc. to anyone you wish to choose.

4) Serving as a testamentary vehicle to distribute your assets to your heirs. Under Panamanian laws, no one may freeze the Foundation's assets under any circumstances – providing the ultimate asset protection vehicle.

The Panama Private Interest Foundation is specifically designed to  protect, and distribute the assets to your beneficiaries in case of some event or disaster. Your Foundation's Letter of Wishes, written by the Protector, will serve as its "living will", containing the foundations assets, list of beneficiaries, and how and when those assets are to be distributed to the beneficiaries.

Since the inheritance is coming from outside of the beneficiary's domestic country, the inherited assets are not subject to any of the standard taxes and legal procedures. Through the foundation, your heirs will receive their inheritance free of probate, gift taxes, estate taxes, inheritance taxes, or legal delays.

Please do not hesitate to contact us if you need further information and complete details on establishing an offshore Trust or Foundation.