Panamian Offshore Trusts and Private Interest Foundations

Estate planning tools

An Offshore Trust or Foundation is ideal for Estate and Asset Protection and Planning purposes. The use of a discretionary Trust or Foundation enables a family fortune to be easily preserved for the benefit of several generations.

Now, we will define in short terms what a Trust and foundation are and the benefits that may be derived from using them. The main characteristic of a Trust is that the legal right to handle the Trust assets, is separate from the right to benefit from them. The Settlor of a Trust (the one who sets it up), transfers land, money and other property to the Trustees, who acquire legal ownership of these assets, but are bound by law to manage them in the best interest of the beneficiaries, who have the beneficial ownership.

For tax purposes, the use of a Trust or Foundation allows the elimination of wealth tax that would normally be imposed on the assets placed therein, as well as tax on capital gains resulting from their subsequent sale. Income tax is deferred or eliminated as long as the assets are kept within the Trust or Foundation and no distribution is made.

Transmission of the assets – Assets Protection – to the beneficiaries does not give rise to inheritance tax on the death of the settlor or founder, or if new beneficiaries are substituted for those no longer alive.

For further information on establishing an offshore Trust or Foundation, please contact us and we will provide complete and detailed information.