The Private Interest Foundation, contrary to corporations, cannot exercise commerce in a regular basis, only in an sporadic manner, nevertheless, they can be shareholders of corporations, and the dividends obtained from those shares become part of the assets of the Foundation.

The Private Interest Foundation, regardless of what we mentioned above, has some practical and real uses for the whole community because it is a permanent instrument and offers the possibility of setting and keep on setting for a long time, even after the death of the Founder, the ideas and objectives determined by that person, natural or juridical, about the assets or patrimony. This offers to the particular person, possibilities and advantages that do not offer the corporations or the simple possession of a bank account or a deposit, for it is guaranteed the continuity, regardless of the natural persons that conform the Foundation Council or the Founder.

The Foundations do not die for it is a juridical person and the desires and objectives of the Founder can keep on fulfilling by the Foundation Council, even after the death of the Founder. We can even include a clause that arranges that when a child reaches whatever age all or part of the patrimony be given to him and not only the income that derives from the administration of those assets.

In many cases, the founders put themselves as beneficiaries while they are alive and leave in writing what they think it should be done with the patrimony or the income derived from it. These instructions to the member of the Foundation Council (it can be a Bank) can be of the most simple kind, like for example, the one that estates that the patrimony be delivered to his family immediately after the death of the Founder, to the more complicated ones, such as expenses, age, health, education.

The Foundation is a kind of will or testament, but with the advantage of ahead planning and the privacy, because a trial for opening a will that can be of public knowledge it’s not needed.

Also it is similar to a trust, with the difference that you don’t have to transfer the assets to the name of the trustee.

For additional information please visit the following sections:

I. REQUIREMENTS FOR THE FORMATION OF A PRIVATE INTEREST FOUNDATION IN PANAMA. Click here

II. MOST COMMON USES FOR THE PRIVATE INTEREST FOUNDATIONS. Click here

III. MANAGEMENT STRUCTURE. Click here

IV. TAXATION. Click here