What is the Panama Private Interest Foundation Legislation of 1995?

By Georgetown Trust

LegalDocumentIn 1995, a piece of legislation called the Panama Private Interest Foundation became a part of Panama's financial laws. It was devised as a way to protect assets offshore, and it can be used both for philanthropic purposes and estate planning in much the same way that a trust can be used.

Even if you aren't interested in banking or investing in Panama, this 20 year-old piece of Panamanian legislation could have some significant benefits on your financial actions today as well as in the future.

What is the Panama Private Interest Foundation Legislation of 1995?

In 1995, Panama legalized private interest foundations. These fall somewhere on the spectrum between an offshore company and an offshore trust. Also known as a PPIF, a Panama Private Interest Foundation does not have an exact owner, which means that the assets found within the foundation can't be seized in the event of personal bankruptcy or legal proceedings.

The assets within the Panama Private Interest Foundation are managed by a group of nominee councilors that are elected by the initiator of the foundation. While the supplier of the assets can't be a councilor for legal reasons as well as to protect their anonymity, they can serve as protectors or beneficiaries if desired.

The benefits of a Panama Private Interest Foundation include the preservation and security of assets, the reduction of taxes and the chance to provide and care for nonprofit organizations, charities or dependents in the years ahead.

How Could You Benefit From This Piece of Legislation?

In order to create a private interest foundation that adheres to Panama's legal code, you have to start with a patrimony, which is a minimum of $10,000 in asset value that will be used as the base of the foundation's worth.

One thing that might surprise you to learn is that some or all of your assets could be shares of an IBC in Belize. This is a way for you to move your money and assets offshore and then fit them into a secure foundation that is legal and won't force you to pay taxes or deal with the risk of seizure for any reason.

You won't have to report on the status of the foundation or its value, and you won't need to be linked to it legally. However, your appointed nominee councilors will follow out the charter of the foundation and ensure that your plans for the future are always met. 

How Can You Start Your Own Offshore Foundation Today?

If you are eager to safeguard assets, ensure that your dependents are cared for the in the future or legally separate yourself from assets for any reason, then establishing a Panama Private Interest Foundation could be key.

If you already have an IBC, or International Business Company, in Belize, then transferring a minimum of $10,000 in assets will be an easy way to get started. You will also need to draft up a plan, or letter of wishes, to help define the objectives of the foundation.

If a private interest foundation appeals to you, then a trusted global adviser at Georgetown Trust can help you get started right away.
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Topics: Foundations