Panama Private Interest Foundation
From Wikipedia, the free encyclopedia
The Panama Private Interest Foundation (PPIF) is a type of private foundation formed under the laws of Panama. It is based upon the Liechtenstein "Stiftung" (a family foundation).
[edit] Features
Foundations are mainly used for philanthropic or estate planning purposes. In terms of the legal structure, a PPIF lies somewhere between an offshore company and an offshore trust.
Functionally a private foundation differs from an offshore company in that a foundation cannot engage directly in commercial business activity, although it may own investments such as property, stocks, bonds and companies.
The foundation has a founder, protector, beneficiary and council members. There are no owners to a Panama Foundation. A "Letter of Wishes" may be written by the protector to specify how the foundation's assets should be handled following the protector's death.
[edit] Benefits
- Protects assets - Since the PPIF is not owned by anyone (it has no owners), the assets of the PPIF can't be claimed if the founder, council members, protector or beneficiaries have unpaid debt.
- According to Panama law, the assets of a PPIF are non-freezeable. There are some exceptions, but if the money has been in the foundation for over 3 years, it's certainly non-freezeable.
- Foundations can be used to help family members financially according to the protectors instructions.
- It can be used to collect royalties.
