5 Uses for a Panama Foundation
A Panama Foundation can be used in several ways.
1. Estate Planning: A Panama Foundation can serve as an estate planning tool by establishing a family structure where all the assets are owned by the Panama Foundation and passed onto the heirs. This can be a perpetual structure whereby the beneficiaries’ heirs can continue to control the family’s assets after their parents decease. The benefits are that once set up this structure can save a family a lot of money by avoiding expensive probate procedures and asset title transfers from one generation to the next. Estate taxes can also be avoided since the Panama Foundation continues to own all of the assets.
2. Family Privacy: A Panama Foundation also provides a family with complete privacy as ownership of the family’s assets remains with the Panama Foundation and not in the family name. The Panama Foundation’s Founder, Protector, and Beneficiaries are anonymous providing further privacy for the family.
3. Corporate Ownership: The Panama Foundation can own all of the corporate shares in a complete asset protection system whereby all of the assets are held by different Panama Corporations for total privacy and lawsuit protection. A Panama Foundation can act as the Holding Company for all of the Panama Corporations adding another layer of anonymity for a family’s privacy. The Panama Foundation’s owner (Protector) can maintain control of all of the Panama Corporations while maintaining complete privacy.
4. Transferring Funds Offshore: A Panama Foundation can be used for transferring funds from one country to another with complete privacy. Funds can be traced through their bank wire transfers. In order to maintain complete privacy, once the funds are bank wired from the original country to a Panama Foundation in a Panama bank account (or another country with equally strict bank secrecy laws) it will become nearly impossible to continue the trace.
5. Gifting: Some people use a Panama Foundation to receive funds and then to gift them to family members for educational or special grants. This avoids gift taxes and reporting requirements imposed by some countries.