The 7 most understood Offshore Foundation Facts |
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| By Doug Sitenal |
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| keywords: offshore banking law legal asset protection foundations corporations banking finance financial legal law money business b2b | ||||
| Many people do not understand the "offshore foundation". The purpose of an offshore foundation is to manage assets. They are managed according to a "secret letter of wishes" which is NOT a public document. The world has gone tax crazy. Political instability and continuous wars will not be the downfall of civilized countries. Indeed, I propose, that over taxation will be the downfall of the civilized world. Taxes always go up and never down. There is a breaking point. The individual, however, needs a solution today. An offshore foundation is the perfect solution. In addition to being a strong asset protection structure, an offshore foundation can be used to legally bypass estate taxes in the event of a death. Who can own a foundation under Panama law? Nobody. That's right. A Panama foundation cannot be legally owned by anyone. It is it's own entity. This one aspect makes it a very powerful asset protection vehicle. Also a foundation carries respect that a simple, anonymous bearer share corporation (also available in Panama) does not get. This is important sometimes, when entering into contracts with other companies or opening bank accounts in some (but certainly not all) jurisdictions. The reason an offshore foundation should be part of any bullet proof asset protection structure, is because an offshore foundation is not owned by anyone. This makes a judgment against it impossible. How would an onshore court order anyone to return the funds from a foundation back onshore. He simply can't because it is illegal for a court to order you to return the funds. The funds belong to a foundation and you CANNOT own it because a foundation is not owned by anyone. Corporation? Foundation? What's the difference? -- There are many differences including the fact that a foundation's purpose is not to engage in "for profit" activities. The purpose of an offshore corporation, on the other hand, is just that, to engage in business activities. The core difference, is that a foundation cannot legally enter into for profit activities. It can, however, own a corporation, which can in turn operate in a business environment to make money. The most secure asset protection structure today is the offshore foundation - offshore corporation package. Your death should not be the cause of a in-family fight, but all to often this is the case. One child tries to overturn your onshore trust to get control of your assets. Your wishes get trampled on as a sympathetic judge overturns your wishes. An Panama foundation, on the other hand, is rock solid. It cannot be broken. Panama courts time and again have upheld the "letter of wishes" over any kind of legal challenge. This prevents the fighting before it starts. Also it is too expensive to carry on a legal battle in a foreign place. This is a strong deterrent as well. 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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| keywords: offshore banking law legal asset protection foundations corporations banking finance financial legal law money business b2b | ||||
| Article Source: http://interpret.zar.vg | ||||
| About The Author If you considering an Asset Protection structure you should consider reading additional information about the Panama Offshore Foundation at offshorelegal.org |
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