Panama Foundations and Asset Protection

Off shore foundations are the best way to protect your valued assets. They are beneficially used in many different ways. Panama has strong enforced laws to protect the various aspects of Foundations usage.

There are three main executive titles in a foundation. There is the Foundation Protector. This position is generally held by the person who is starting the foundation. Because Panama law states that foundations can not be owned by anyone, the protector position is created to ensure that someone has bank signing authority and is keeping the books.

When a foundation owns a corporation, that corparation could generate income. As long as the income is not generated in Panama there is no income tax put on the income amount. A foundation can be used for tax planning purposes as well.

There is also a foundation founder. You do not need to be the foundation founder. Law firms can also appoint one to further the annonymity of the foundation. The Foundation founder has no control of the foundation or its assets.

There is a letter created at the beginning of the formation of an offshore foundation naming a beneficiary of the foundation. It is called a secret letter of wishes. In this way, a foundation can be used as a sort of will or trust. Upon death, there are no estate or inheritance taxes charged to the asset amount. Although foundations cannot conduct business dealings they can also own corporations. It is the corporations within the foundations that can conduct any business operations. There is no limit to the amount of assets that an offshore foundation can own.The minimum amount of money that a Foundation can be started with is $10,000.

One of the ways a foundation is used is by way of a secret letter of wishes. This is a letter created at the beginning of the formation of an offshore foundation naming a beneficiary of the foundation. In this way, the foundation is being used as a sort of will or trust. Upon death, there are no estate or inheritance taxes charged to the asset amount.

Another way foundations are used is to create total anonymity for the asset holder. Because of Panama law which states that foundations have no owners, no one can ever find out where the assets in the foundation came from. The books and records never become public.

When a foundation owns a corporation, and that corporation could generate income. As long as the income is not generated in Panama there is no income tax put on the amount. So the foundation can be used for tax planning purposes as well.

The laws in Panama protecting Foundation Assets are strict and adhered to.They have special laws to protect foundation assets from being frozen by the courts. Panama law also ensures that the beneficiary instructions are adhered to exactly.

About the Author: Alexandra Kensington

Visit OffshoreLegal.org to get more information about foundations in Panama or asset protection

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