Many people do not understand the difference between an "offshore foundation", "offshore corporation" and an "offshore trust". Like other offshore vehicles, and offshore foundation is intended to manage funds primarily. This is done through a secret letter of wishes which are strictly followed. The letter of wishes 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. Unlike onshore trusts, which are commonly used in estate planning, an offshore foundation is strictly enforced by Panama courts. In the event of death, family members will not be entering into litigation to try and break the foundation. It is common for an onshore trust to be broken for any number of different reasons. If you want your wishes followed to the "letter" then a Panama foundation is your best option. The foundation is unique because it cannot be owned by anyone and it does not pay taxes on any funds it holds (as long as the funds are not generated by business in Panama -- ie. You cannot open a bakery in Panama and not pay taxes using this vehicle.) All money that is not generated in Panama is held tax free which makes it the perfect part of any tax plan.
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Many people do not understand the difference between an "offshore foundation", "offshore corporation" and an "offshore trust".
If you thinking about an Asset Protection structure you should consider reading more about the Panama Offshore Foundation at offshorelegal.org Get your own completely unique content version of this article.
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