What is a Panama Private Interest Foundation?

What is a Private Interest Foundation?

A Panama Private Interest Foundation is a legal structure that lets you manage your assets and avoid inheritance proceedings. It combines the benefits of corporations and trusts, and it operates through a board of trustees. This board is obligated to follow the founder's instructions as laid out in the foundation's statutes and regulations.

Advantages of a foundation

One of the significant benefits of a Private Interest Foundation is that it allows you to segregate your property in a confidential and safe manner. It also lets you engage in commercial activity in unusual ways or exercise rights arising from your participation in commercial companies.

Documents needed

To establish a Private Interest Foundation, you will need two documents: the foundation's charter, which is public, and the association's statutes, which are private and confidential.

Lifetime of the founder

A Private Interest Foundation can operate throughout the lifetime of the founder or after their death. This means that you can choose to have the fund operate while you're alive, or you can set it up to benefit your heirs after you pass away.

Tax and liability benefits

A Private Interest Foundation also has several tax and liability benefits. For instance, it is exempt from tax on income from foreign sources, and the assets of the fund are not subject to the personal liabilities of the founder or beneficiaries.

Transfer of assets

After the founder's death, the board of trustees will transfer the assets and profits to the designated heirs without any legal process. This transfer will be in accordance with the founder's instructions as laid out in the association's statutes.

Conclusion

In summary, a Private Interest Foundation is a legal entity that can help you manage your assets and inheritance proceedings. It operates through a board of trustees that is obligated to follow the founder's instructions as laid out in the foundation's statutes and regulations. With several benefits such as tax and liability exemptions, a Private Interest Foundation can be an excellent way to secure your assets for yourself and your heirs.