The purpose of an offshore foundation is to manage assets. They are managed according to a "secret letter of wishes" which is NOT a public document.

A foundation can be used much like a trust to pass on assets bypassing estate taxes at the time of death. Many countries have made death a taxable event. This makes absolutely no sense of course and every person should consider an offshore foundation (or offshore trust) to protect their assets.

In Panama an offshore foundation is not owned by anyone. In fact it cannot be owned according to Panama law. A foundation can own a bank account and corporation. A foundation / corporation combination is the most respected anonymous offshore asset protection existing today.

A foundation is an iron clad way to secure your assets because no court or judge can ever order you to provide funds that a foundation owns. That would be an illegal order and courts cannot issue illegal orders.

Many people ask why they need a corporation and a foundation. Legally a foundation cannot engage in business activities, like marketing and selling a product. A foundation can, however, own an offshore company. The offshore company can then engage in business activities. This is the most common and safe asset protection techniques used in offshore banking and asset protection today.

All too often, the death of a family member causes rifts and fights among family members. These fights take place in the courts as family members try to invalidate your wishes through some technicality, and overturn your onshore trust. An offshore foundation, however, is strictly enforced by Panama courts, which will not put up with silly legal challenges, often used onshore. Time and again, the offshore foundation has proved impossible to overturn and thus prevents family feuds from starting over your assets.

One benefit that cannot be overlooked is the tax advantage of an offshore foundation. It is not owned by anyone and it does NOT pay tax on any money it manages (as long as it is not derived in Panama).