Complete Asset Protection Can Be A Reality

Jan. 10, 2012 - PRLog -- Asset Protection is a term used around the world.  What “asset protection” actually means is that you can transfer ownership to all of your assets (bank accounts, vehicles, boats, planes, real estate, jewelry, art objects, furniture, furs, etc.) to an entity which you own anonymously.  That way you own nothing (a pauper on paper) which protects you from lawsuits (who wants to waste money suing a pauper?) avoids probate (no need for a will) and transfers your assets to your heirs quickly and safely.  In the meantime, your ownership of the entity is anonymous affording you total privacy.  This is what you want to accomplish with asset protection.
Some tax haven countries merely sell offshore corporations while other have different offshore entities to work together to accomplish the ultimate in Asset Protection.  Merely having an offshore corporation and a corporate offshore bank account is not enough these days as more tax haven countries become more transparent allowing foreign governments to access public and bank records to see who really owns the corporation.  This is not asset protection.
Panama is one of those jurisdictions where you can form a Panama Offshore Corporation and form a Panama Private Interest Foundation to own the shares of the Panama Corporation.  That way the private Foundation owns the Corporation.  You can have a totally anonymous asset protection system using both of these entities.    
Here’s how it is done:  The Corporation owns all of the assets.  The Foundation acts as a holding company for the corporation.  Asset Protection with complete Privacy!
What is a Private Foundation?  
Panama’s Private Interest Foundation is an entity which acts like a Trust yet operates as a corporation.  Panama looked at the Foundation laws in Switzerland, Luxembourg and Liechtenstein and created its own foundation law taking a little from those three country’s laws.   This way a more affordable Asset Protection and Estate Planning entity can be purchased.  The Foundation acts as a non-profit entity by not engaging directly into businesses for profit.  However, it can passively earn income such as interest from bank accounts and owning shares of for profit corporations.  
There are five parties to a Private Interest Foundation:
1. The Founder who forms the foundation as an asset protection entity.
2. The Foundation Council which acts just like a corporate Board of Directors whose names are filed in Panama’s Public Registry so in most cases members of the law firm creating the foundation serve as its council.  To protect the client, most law firms provide undated, signed letters of resignation for the council members.
3. The Protector is the one who controls the foundation.  The Protector remains totally anonymous and has full power over the foundation and its assets.
4.  The Beneficiaries are listed in a private letter written by the Protector.  This document is private and seen by very few people.  The Protector can change the private letter at any time, as well as, the beneficiaries and the asset protection structure.
5.  The Registered Agent must be a lawyer who accepts government notices or legal process on behalf of the foundation.
Only $10,000 capitalization is required to set up a private foundation.
What does a Foundation do?
Foundations act as Holding Companies, own bank accounts, and distribute the assets to the heirs (beneficiaries).  
In Conclusion, the double layer of a Corporation being owned by a Foundation provides anonymity, estate planning, and total asset protection.

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Carlo Scevola & Partners is a fiduciary company headquartered in Geneva, Switzerland, with branches in six continents. We specialize in international planning, strategic consulting and wealth management.