Only two countries in the world have laws that allow the incorporation of private interest foundations, and Panama is one of them. The private interest foundations are legal instruments used with purposes of assets and patrimony administration in benefit of third parties, denominated beneficiaries.
The private interest foundations combine in one figure the benefits of the corporations and trusts. In conclusion, by means of a private interest foundation, a person denominated founder, grants a specific patrimony to the administration of a council, to be administered in benefit of one or several beneficiaries, with the objective that the result of this benefit is perceived in an immediate or future manner, or also conditioned to a future event. The private interest foundations in Panama, offer the following advantages:
- The assets of a private interest foundation are protected in a special way by the legislation that regulates them. By virtue of this, they can notbe seized, or be subject to any action or preventive measure.
- The private interest foundations allow assets transfers in favor of the beneficiaries at the time of the founder’s physical disappearance. In this way, a private interest foundation can be used in replacement of a will, with the additional advantage that for its execution no succession process is required at the Courts. With this, the time and money wasted usually caused by court proceedings, are avoided.
- The assets of a private interest foundation are independent and are not part of the founder’s patrimony. So, same as a corporation, they serve as an efficient protection tool of assets and financial organization, with the additional advantage that the assets transferred to a private interest foundation are exempt from preventive measures and cannot be seized.