The Panama Private Interest Foundation was created by Law 25 of 1995. It was modeled after Private Foundation laws in Switzerland, Luxembourg and Liechtenstein.
A Panama Foundation differs from traditional charitable foundations in that it is established for a family rather than charities. While a Panama Foundation can gift to public and private charitable organizations, its primary purpose is to provide for the founder’s family and other named beneficiaries.
The Panama Foundation is used for international estate planning, provides upmost privacy, anonymous ownership, and protects the beneficiaries and assets.
The types of assets which can be owned by a Panama Foundation includes; real estate, vehicles, airplanes, vessels, art objects, jewelry, bank accounts, corporate stocks, securities, investment accounts, and nearly every other type of asset located worldwide.
Privacy through anonymous ownership is another benefit provided by a Panama Foundation. There are no public records naming the founder or the beneficiaries and there are no government reporting requirements. Only the Panama law firm representing the Panama Foundation will know who the founder (settler/owner) and the beneficiaries are.
The estate planning benefits of a Panama Foundation include avoidance of time consuming and costly probate process, immediate transfer of control of the Panama Foundation by the beneficiaries upon the occurrence of an event specified in the creation documents (Letter of Wishes) by the founder such as his/her death or physical/mental incapacity.
As you read the rest if the pages in this section, you will learn how a Panama Foundation is a cost effective system providing asset protection, privacy in one’s financial affairs, probate avoidance, and perpetual control of all assets by the beneficiaries and their heirs.