Private Foundations.pdf - Mossack Fonseca & Co.

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There is no limitation whatsoever as to perpetuities, accrual of capital and other restrictions that
are enforced in similar legal entities of other jurisdictions such as Anglo-Saxon type trusts.
The Foundation may (non-habitually) carry out any kind of civil or commercial transactions,
anywhere in the world and in any currency.
Founders, members of the Foundation Council, Beneficiaries and Protectors or Superintendents
may be natural persons or corporations of any nationality domiciled anywhere in the world.
Founders need not be Foundation Council members.
Founders, Protectors or Superintendents and members of the Foundation Council may be
Beneficiaries of the Foundation.
There are no limitations as to the maximum number of Founders, Council Members, Beneficiaries
or Protectors allowed.
Founders and Foundation Council Members may hold their meetings anywhere in the world and
may be represented thereat by proxy.
Foundation books and accounting books (if any) may be kept in Panama or abroad.
Foundation Charter may be subscribed by the client or by an attorney in fact or trustee, without
need to reveal the name of the principal or settlor.
Foundations from other jurisdictions may change their domicile to Panama and continue existing
as Panamanian Private Foundations, or vice versa, by following an easy continuation procedure.
The U.S. Dollar circulates freely as legal tender in Panama and a rigorous bank secrecy law is in
effect.
Panama is currently considered a strong and stable democracy.
MOST COMMON USES FOR A PRIVATE FOUNDATION
Private Foundations are commonly used for the following:
To protect the weak. One of the classic uses of a Private Foundation is to protect persons at a
disadvantage due to minority, incapacity or incompetence to manage their assets or the risk of
losing same.
In cases where family businesses are passed to second and third generations, there is a
possibility of such business becoming fragmented and outsiders gaining control. In these cases,
a Private Foundation insures the conservation and continuity of the family businesses.
To guarantee payment of individual sums of money or individual asset distribution to members of
one or more families for their subsistence, education, clothing and other living expenses, or as a
YA/Pub./10.2007