PRIVATE INTEREST FOUNDATIONS
Panama created the Private Interest Foundation ("PIF") in 1995 taking characteristics from our corporations and merging them with elements from the European and Common Law Trusts.
FIPs are modern and flexible and at the same time their creation and maintenance big virtues in comparison to their cousins from the old continent. This makes them more attractive to those looking to protect their patrimony in an organized manner.
There are several advantages to FIPs, such as:
- Offer a fiduciary structure for organized transfers and the disposition of assets to beneficiaries after death of the Founder, basically replacing a testament, avoiding a probate process;
- The laws of inheritance applicable to the Founder and the beneficiaries do not affect the assets of the Foundation, nor do the laws affect the validity or execution of the main objectives of the Foundation;
- They may from time to time perform commercial actives, exercise rights relative to its securities and possess property and other obligations.
- The assets of the Foundation are considered legally independent and do not form part of the patrimony of the Founder. Said assets cannot be attached and may not be subject to any action or preventive means, with except under certain circumstances.
- The transfer of property, titles, deposit certificates, assets, funds, securities or shares undertaken in order to comply with the objectives of the Foundation, or its termination, in favor of relatives in the first degree or the spouse of the Founder are also exempted from all taxes.
With all these advantages, the flexibility in the structure and the legal certainty that regulates them, they are among the best instruments for asset protection.