Foundations

Foundations


Armadillo provides private foundations in the following jurisdictions:






TYPICAL USES OF FOUNDATIONS

  • Protection of assets
  • To minimise the effect of wealthy taxes
  • Deferral of income
  • To preserve and keep together family assets
  • Estate planning
  • Separation of assets from that of the founder




Initiate a Private Foundation Enquiry

Highlights:

A private foundation is a unique form of legal entity, which acts like a trust and operates like a company. Following are some of the advantages of private foundations:

  • A foundation is a sui generis body corporate, in existence only in Panama, Liechtenstein and Austria
  • Can be in any currency
  • Members of the foundation council can be of any nationality and resident of any country
  • In no case may its assets be used to satisfy the founder's or the beneficiaries obligations
  • The law on inheritance regarding the founder's or the beneficiaries' domicile is not opposable to the foundation nor may it affect its validity or prevent the fulfilment of its objectives
  • There are favourable asset protection sections in the Private Foundation Law

Requirements:

  • Its name, which must include the word "Foundation" (in any language)
  • Its domicile
  • The initial capital/estate (expressed in any currency) which can not be less than the equivalent of US$10,000.00
  • The name(s) and address(es) of the member(s) of the foundation council which administers the estate (they can be individuals or corporate entity(ies)
  • The name and domicile of the foundation's Resident Agent in Panama / Lichtenstein/ Austria must be a lawyer or law firm
  • The objectives, goals of the foundation and the way in which members are selected must be possible, reasonable, moral, and legal
  • The use to be made of the foundation's assets and the manner in which its estate is to be liquidated in the event of dissolution

Beneficiaries:

Optional Foundation Regulations (which are not registered at the Public Registry) can also be prepared, and this document could contain details regarding the Foundation Council's attributes, frequency of statements, causes for removal of the Foundation Council, and the manner of distribution of the Beneficiaries' interests. It is not required to appoint beneficiaries in the Foundation Charter.


Obligations:

As established in the Private Foundations Law, the foundation's assets shall constitute a separate estate from those of the founder's personal assets for all legal purposes. Therefore, same may not be seized, attached, or be the object of any action or preventive measures, save for obligations incurred or damages caused upon fulfilment of the foundation's aims or objectives or due to the legitimate rights of the foundation's beneficiaries. In no case shall they be used to satisfy the founder's or the beneficiaries' obligations.

The founder's creditors shall have the right to object to the contribution or transfer of assets of a foundation where same constitutes a fraudulent act against creditors, but the rights and actions of such creditors shall prescribe in three (3) years as from the date of the contribution or transfer of assets to the foundation. This also includes members of the Foundation Council and of the supervisory bodies, if any, as well as public servants or private sector employees who have knowledge of the activities. Breach of this obligation shall be punishable by six-(6) months imprisonment and a B/.50,000.00 fine, without prejudice to the corresponding civil liability.

Initiate a Private Foundation Enquiry


If you have an enquiry please contact our specialists for FREE advice and consultation on +44(0)1462 427 300 or email us sales@armadillocorporate.com