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rivate Interest Foundations (PIF) are normally used to hold assets belong to one person, family members or a group, with the intention to preserve the assets or investment with an specific purpose.
The PIF can become a holding of assets that are normally bought or donated by the funders or any third party looking after the same interest.
PIF are able to own property, open bank accounts, and acquire any right or obligation based in on the intention and purpose it was created for.
Panama foundation or PIF are very similar to a Trust and should not be created to operate as a commercial business entity, instead Foundations are most likely to be used as a non profit entity and guarantee the protections of assets for the final beneficiaries pr purpose.
Top 5 reasons to create a Panama Foundation or PIF
1. Quick: Private Interest Foundations only take 4 business day to be formed and registered.
2. Works as Will: in case of dead or incapacity of the protector, the beneficiaries can take immediate control over the assets and continue with the exclusive purpose it was created for.
3. Asset Protection: All assets are protected and shield.
4. Privacy: No shares Certificates, and no obligation to register the final beneficiaries nor the purpose of its creation.
5. Easy representation: Meetings of Funder Council can be held anywhere in the world.
The Panama Foundation has a founder, a council, a protector, and beneficiaries.
Founder: The founder is the person or entity that establishes the Panama Foundation in the Public Registry of Panama.
Council: The council serves the same purpose as the board of directors on a corporation.
Protector: The protector is the person or entity who ultimately controls the Panama Foundation and all assets held within it. The protector is appointed by the council when the foundation is created.
Beneficiaries: Unlike a corporation that issues share certificates to certify who the owners are, the Panama Foundation does not have owners, but it has beneficiaries. The beneficiaries are appointed by the brotector through a Letter of Wishes, or through a more formal set of Foundation By-Laws.
Letter of Wishes: The Letter of Wishes is a letter written by the Protector, which specifies how the Panama Foundation assets should be handled or distributed upon a triggering event such as death or incapacity of the Protector. It should also state whether the Panama Foundation should continue existing, and have a new Protector appointed, or if it should be dissolved upon the death of the Protector. The letter of wishes can be held privately, or can be registered publicly.
Foundation By-Laws: The Panama Foundation does not need to have Foundation by-laws, since a letter of wishes is legally sufficient for expressing the protectors’ requested testamentary instructions. The Foundation By-Laws essentially handle the same function as a letter of wishes, and it can also be held privately or registered publicly.
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