Common Benefits of the Panamanian Foundation
Panamanian Foundation is a type of private foundation formed under the laws of Panama. The Republic of Panama illustrated its inspiration from the Liechtenstein Law, adapted that European model to create something more flexible and more modern Private Foundation. This Foundation has obvious advantages for global asset planning. It is qualified to conduct non-habitual commercial transactions.
A Private Foundation is established when one or more natural persons or legal entities formalize a document known as a Foundation Charter. This is registered at the Public Registry of Panama, where the parties undertake to donate not less than the equivalent of $10,000. It is to be administered by a Foundation Council, who is supervised by the protectors. They are appointed for the benefit of one or more beneficiaries. The responsibility to contribute further, whether fiduciary or in kind is not subject to a limited time period. In fact, there is no legal requirement of disclosure. Once registered at the Public Registry in the Republic of Panama, the Foundation Charter builds a legal entity.
Use of the Panamanian Foundation
Following are some of the main use of Private Panamanian Foundation.
- 1.To own and run a family business, therefore, avoiding tax laws pertaining to inheritance
- 2.To ensure monetary payment or distribution of individual asset to member of one or more families for their subsistence, education, clothing and other related living expenses. Or payment made as a mechanism through which their families, children, grandchildren may enjoy a share in the earning of their parents or grandparents. In Europe, the term Family Foundations is used for such private establishment.
- 3.Panamanian Foundation is used to make scientific, philanthropic, humanitarian, religious and charitable donations or to manage funds reserved for similar objective.
- 4.To protect the rights of a disadvantages person or persons at a potential risk
- 5.The foundation is put to use for the assistance of family member, people in need or institutions. In Europe, multiple purpose private foundations are called Mixed Foundation.
- 6.The Panamanian Foundation plays the role of administrator who works towards employee benefits by instituting benefit schemes and employee pension plans.
- 7.They act as substitute in the absence of a will. Therefore, one avoids complicating inheritance procedures.
- 8.Acts as a substitute for marriage or pre-nuptial agreements
- 9.To purchase and own shares, stock, interests in private companies
- 10.The Panamanian Foundation is a vehicle for buying patents, intellectual property and for receiving royalties and other form of relevant income.
- 11. Acts as a medium for investing in time deposit accounts, stocks, bonds or other securities
- 12.For owning real estate, property, and even art work, the Panamanian is the best vehicle.
- 13.To avoid economic instability
- 14.The Panamanian Foundation provides support for an asset protection as well.
The private interest foundation or Panamanian Foundation brings a flexible civilian approach to estate planning. As long as the structure created fulfils minimum statutory requirements, for the most part, a foundation can be tailor-made to meet the estate-planning needs.