Article Search:

Home | Finance | Personal Finance


The 7 most understood Offshore Foundation Facts

By: Doug Sitenal

Many people do not understand the "offshore foundation".



Like other offshore vehicles, and offshore foundation is intended to manage funds primarily. This is done through a secret letter of wishes which are strictly followed. The letter of wishes is not a public document.



The world has gone tax crazy. Political instability and continuous wars will not be the downfall of civilized countries. Indeed, I propose, that over taxation will be the downfall of the civilized world. Taxes always go up and never down. There is a breaking point. The individual, however, needs a solution today. An offshore foundation is the perfect solution. In addition to being a strong asset protection structure, an offshore foundation can be used to legally bypass estate taxes in the event of a death.



An offshore foundation (in Panama for example) has no ownership. Legally there is no way to own a foundation. It can however, own a corporation and a bank account which makes it the cornerstone of some of the best asset protection structures in the world today.



The reason an offshore foundation should be part of any bullet proof asset protection structure, is because an offshore foundation is not owned by anyone. This makes a judgment against it impossible. How would an onshore court order anyone to return the funds from a foundation back onshore. He simply can't because it is illegal for a court to order you to return the funds. The funds belong to a foundation and you CANNOT own it because a foundation is not owned by anyone.



Corporation? Foundation? What's the difference? -- There are many differences including the fact that a foundation's purpose is not to engage in "for profit" activities. The purpose of an offshore corporation, on the other hand, is just that, to engage in business activities. The core difference, is that a foundation cannot legally enter into for profit activities. It can, however, own a corporation, which can in turn operate in a business environment to make money. The most secure asset protection structure today is the offshore foundation - offshore corporation package.



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.



The foundation is unique because it cannot be owned by anyone and it does not pay taxes on any funds it holds (as long as the funds are not generated by business in Panama -- ie. You cannot open a bakery in Panama and not pay taxes using this vehicle.) All money that is not generated in Panama is held tax free which makes it the perfect part of any tax plan.

Article Source: Free Content Articles Directory

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

Click here to get your own unique version of this article.

Please Rate this Article

 

Not yet Rated

Click the XML Icon Above to Receive Personal Finance Articles Via RSS!

Powered by Article Dashboard