7 common Offshore Foundation Misconceptions explained

Many people do not understand the difference between an "offshore foundation", "offshore corporation" and an "offshore trust".

An offshore foundation is used to manage and control assets. This is accomplished through a secret letter of wishes. This letter is, as it's name implies, a private document that is not available to the public. Under no circumstances, is this letter ever required to be made public and is protected by Panama law.

Taxes never decrease and never end. Even death is now a taxable event. To protect oneself, many people are turning to legal alternatives. An offshore foundation, in particular, a Panama foundation is the most secure alternative. An offshore foundation, in addition to being a rock solid asset protection vehicle, is able to pass on assets according to the secret letter of wishes, bypassing the tax laws (legally).

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.

One of the greatest features of an offshore foundation is that a judge or court cannot order funds to be repatriated because a foundation is not owned by anyone. The order would be illegal and no judge would make an illegal order, and if he did, it would easily be overturned.

Many people ask why they need a corporation and a foundation. Legally a foundation cannot engage in business activities, like marketing and selling a product. A foundation can, however, own an offshore company. The offshore company can then engage in business activities. This is the most common and safe asset protection techniques used in offshore banking and asset protection today.

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.

One benefit that cannot be overlooked is the tax advantage of an offshore foundation. It is not owned by anyone and it does NOT pay tax on any money it manages (as long as it is not derived in Panama).

Article Source: http://www.myaddirectory.com

If you thinking about an Asset Protection setup you may want to read additional informlocated ation about the Panama Offshore Foundlocated ation located at offshorelegal.org

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