If you are considering to buy property in Panama and you would like to secure it, and among others benefits, avoid an inheritance process in Panama for that property you should consider buying it on the name of a Panamanian Private Foundation.
WHAT IS A PANAMANIAN PRIVATE FOUNDATION?
A Panamanian Private Foundation is an entity having its own juridical personality and a patrimony composed of the assets transferred by the Founder or a third party, for nonprofit oriented purposes in favor of the Founder, its family, and/ or third parties.
WHO ARE THE PARTIES INVOLVED IN A PANAMANIAN PRIVATE FOUNDATION?
THE FOUNDER: It is the person (juridical or natural) that transfers its assets to the Foundation.
THE FOUNDATION COUNCIL: It consists of the group of persons or the juridical person(s) who will be responsible for carrying out the objectives of the Foundation and for administering the assets thereof, following the directions stated by the Founder.
THE SUPERVISORY ENTITY: The founder can appoint a Protector, who can be a natural or juridical person in charge of supervising the acts of the Foundation Council.
THE RESIDENT AGENT: Is a lawyer or a law firm that represents the Foundation before the Panamanian Government.
THE BENEFICIARIES: It’s the person(s) that will receive the benefits of the foundation or its assets.
WHAT TYPE OF ASSETS CAN BE TRANSFERRED TO A PANAMANIAN PRIVATE FOUNDATION?
According to Panamanian Law, all types of assets can be transferred to a Private Foundation; this includes Real Estate, shares of a corporation, bank accounts, etc.
WHY USE A PANAMANIAN FOUNDATION?
Once the assets of the Founder are transferred to the foundation they will constitute separated assets and, after three years of the respective transfer, they may not be subject to any precautionary measures in virtue of actions prosecuted for personal obligations of the Founder.
In addition to the Foundation Charter (contained in a Public Deed that must be recorded in the Public Registry) there is a private document called the foundation’s Regulations. This is a document by means of which the Founder establishes the assets that will constitute the patrimony of the Foundation; the appointment of the Beneficiaries and how the assets shall be distributed, in case of his/her decease.
According to Panamanian Law, the Founder can also be the First Beneficiary of the Foundation.
When a Foundation has been created to be effective after the death of the Founder, the Founder shall have the right to revoke it at all times.
If you want to know more about the Panama Private Foundation, contact your lawyer, requisites are simple and it is a useful instrument to protect you, your family and your assets.
