What Is a Private Foundation?

Private foundations are a combination of trusts and offshore companies, whose purpose is to operate, preserve, manage and invest property, and make effective arrangements for the confidentiality of property ownership and financial benefits. A foundation differs from a trust in that its legal personality is an independent asset owner.

Private foundation

Panama is one of the largest international banking centers in the world, with approximately 200 international banks established in Panama. Bank of Panama's total assets exceed $ 150 billion. The "Panama Private Interest Foundation" is a legal entity established in accordance with the foundation's charter. Its highly flexible and modern operating concept is widely used in various property plans.

1. Manage the founder's property;

2. As the owner or manager of real estate or private investment (investment methods such as bank accounts, time deposits, stocks, bonds, etc.);

3. The foundation may act as a holding company if it owns shares and property of a private company;

4. As the manager of employee profit distribution plan and employee pension plan;

5. In some cases, when the family business is passed to the second or third generation, there may be divisions and outsiders in power. The foundation can guarantee the complete continuation of the family business;

6. Pay and distribute living expenses, education and other expenses of one or more family members, and grandchildren can share their parents or grandparents' income;

7. The Foundation does not restrict beneficiaries in distributing the property and income of individuals (friends or loved ones). The founder may designate a beneficiary;

8. As a way to collect rent and return on fixed investment income.

1. Maintain control of the property during the lifetime of the founder and orderly transfer and distribute the property to beneficiaries after his death;

2. The foundation may be implemented on the day of its establishment or after the death of the founder;

3. In accordance with the Private Funds Act No. 25 of 1995, the foundation's inheritance law applicable to the place of residence of the founder or beneficiary;

4. Highly confidential and highly flexible

1. Provide the name of the foundation to check its availability. The name of the foundation must end with "foundation";

2. Establishing a foundation requires at least US $ 10,000 as a predetermined asset to achieve its goals. The amount of the asset can be increased by the input of the founder or a third party: