The top 7 overlooked Offshore Foundation Benefits

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The top 7 overlooked Offshore Foundation Benefits - By: Doug Sitenal, Posted on: 2007-08-16

The "offshore foundation" is probably the most misunderstood asset protection vehicle.

The purpose of an offshore foundation is to manage assets. They are managed according to a "secret letter of wishes" which is NOT a public document.

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).

In Panama an offshore foundation is not owned by anyone. In fact it cannot be owned according to Panama law. A foundation can own a bank account and corporation. A foundation / corporation combination is the most respected anonymous offshore asset protection existing today.

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.

There is some confusion about the difference between a foundation and a corporation. A foundation's purpose is to manage funds while a corporation's purpose is to engage in business activities. It is illegal for a foundation to engage in for profit business activities. For this reason, most asset protection packages include a corporation owned by a foundation. This affords all the added security of a foundation and all the flexibility of an offshore company.

All too often, the death of a family member causes rifts and fights among family members. These fights take place in the courts as family members try to invalidate your wishes through some technicality, and overturn your onshore trust. An offshore foundation, however, is strictly enforced by Panama courts, which will not put up with silly legal challenges, often used onshore. Time and again, the offshore foundation has proved impossible to overturn and thus prevents family feuds from starting over your assets.

Foundations do not pay tax on funds generated outside of Panama. This makes a foundaton a great part of any tax planning strategy.

Article Source: http://higradesearch.com

If you considering an Asset Protection setup you should consider reading more about the Panama Offshore Foundlocated ation located at www.offshorelegal.org
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