Common uses for a Panama Private Foundation
What is the purpose of establishing a Panamanian Private Foundation?
- For any specific asset protection plan.
- To insure assets against different adverse situations, such as excessive taxes for those who reside where the assets are located, future claims by creditors, forced heirs or political or economic instability in the country where the client resides.
- To manage bank accounts, whether numbered or not, as this is a discreet and safe vehicle.
- As a substitute for a will, thus avoiding complicated inheritance procedures, for which the Foundation Council would distribute the estate assets.
- In cases where family businesses are passed to second and third generations, there is a possibility of such business becoming fragmented and outsiders gaining control. In these cases, a Private Foundation insures the conservation and continuity of the family businesses.
- As a substitute for marriage articles or prenuptials agreements.
- To own shares, interests and stocks of private companies. In this case, the Private Foundation acts as a holding company.
- As a vehicle for investing in time deposit accounts, stocks, bonds or other securities.
- As the owner of real estate or valuable movable property such as art work.