Protection from rampant litigation, circumventing forced heirship, a hunger for renewed personal privacy, fears with respect to the integrity of your native country's banking system are just a few of the reasons you might wish to take your personal assets offshore. Panama offers numerous methods for personal asset protection and estate planning with the Panama Private Interest Foundation (henceforth PPIF) being particularly suited to those seeking a high degree of anonymity and asset protection.



The PPIF was introduced by the Panamanian legislative branch/assembly in 1995 and, broadly, marries the the notions behind trusts and wills with the protective benefits Panamanian corporations. Its underlying statutes are based on the "Stiftung" model used in Liechtenstein. Typically, the Foundation comprises the following parties:

- a Founder, who establishes the foundation and funds it with initial assets (referred to as the patrimony and not less than USD 10 000); - a Council, similar to a corporation's board of directors, these members are recorded in public records; - a Protector, appointed by the Council at creation, this position is not strictly mandatory and does not have to be declared publicly; - Beneficiaries, appointed by the Protector and, like the Protector, are optional and remain anonymous.

Panama foundations provide a number of benefits not the least of which is much more favorable inheritance laws upon the death of the protector. If you are the protector of a foundation and you pass away there is no inheritance tax to pay for the Foundations assets when they are transferred through your secret beneficiary wishes letter (can be thought of as a will). You can also protect yourself from litigation since a foundation cannot be owned by a person and as such the assets cannot be frozen unless it can be shown to a Panama court that the foundation is being used for illegal purposes such as drug trafficking or money laundering.

Having a proper letter of instruction is of paramount importance to maintain the Foundation upon death or incapacitation of the Foundation protector. This letter of instruction can specify a new protector or beneficiaries of the Foundations assets or other special instructions. These letters can remain in secret with no one knowing who the beneficiary or protector of the foundation truly is.

While a Panama Foundation cannot do "for profit" business it can own; Panama corporations, real estate, bank accounts and other assets.

Panama law guarantees the assets of a PPIF against sequestration and embargo provided the Foundation does not engage in illegal activity. This prevents assets being frozen as a protective measure prior to a court trial.

The Panama Foundation offers a very sophisticated, anonymous and almost bullet proof asset protection capability.