Provide yourself the legal structure to reduce your tax liabilities and protect your assets from needless claims and lawsuits.A Panamanian Private Interest Foundation (PPIF), more commonly known as a Panama foundation, can protect your estate from legal disputes after your death to ensure that your estate will pass to your chosen beneficiaries without undue complications.
First introduced in 1995, the Panama foundation is modeled after the Liechtenstein Family Foundation, or Stiftung, which has been the preferred vehicle for wealth management for generations of Europeans. The Panama foundation, though, has been developed to offer its holders and their assets superior protection from prying eyes than the Liechtenstein.
A Panama foundation takes the best elements of a trust and an offshore company, or IBC, to create a legal entity to passively hold the assets of those who formed it. A foundation has no owners, so assets of the foundation, such as corporations, shares of stock, real estate and bank accounts, are held for the foundation’s beneficiaries (e.g. your heirs). Traditionally they were used to protect the wealth of the family and to make sure that its assets were passed on to succeeding generations.
Because there are no owners of a Panama foundation, reporting requirements are not necessary in many countries. For example, foundations are not specifically recognized by US tax Law, which allows you to decide the way in which your foundation is declared, and it may be structured in a way that allows it to legally avoid the reporting requirements of the IRS.
One way of doing this is to structure it as a charitable foundation rather than just as a family foundation. Using a private interest Panama foundation for private international church, humanitarian, philanthropic or other charitable activity is quite a well-established concept and we have a healthy number of clients that have pursued this path.
There are ways to ensure that a private interest charitable foundation can also meet the goals that would be normally desired for a private interest family foundation, as their two principal aims are not mutually incompatible.
COI is engaged to providing our clients with the best possible consultation and legal services. We have been helping our clients protect their interest and assets since 1998. We are committed to building trust and creating long-term relationships, and we strictly observe attorney-client privilege.
Should you require additional information, request a quotation or clarify any related matter, please contact one of our Consultants who will be happy to assist with your enquiries.
COI ´s services are subject to its Terms and Conditions.The information provided by COI is intended as informative material and should not be relied solely upon in decision-making, especially if it concerns international tax planning and financial structuring as these areas are subject to frequent changes, although its efforts to keep all information on its website regularly updated.
COI strongly recommends that each potential user of its services seek tax and legal advice before deciding on implementing a solution employing international financial structures. COI will not be liable for any damages, costs and expenses resulting from or incurred as a result of any action taken or omitted based upon any such information provided by COI.