PANAMA FOUNDATION: EUROPEAN ORIGINS

In the late 1920's, the Swiss Community, seeing the World-War and political crisis that was about to take place, developed the entities attractive to the upper middle-class, the wealthy, and the Swiss bankers. 

Its proximity to Switzerland, prompted Liechtenstein to actively participate in the task proposed by the Swiss Community. This participation included the approval of laws, which would lead to the creation of three entities, designed to allow individuals to delegate the administration of their assets to third parties, without having to reveal their identity to any governmental authority and with a level of confidentiality which was almost impenetrable. With the passing of time, these three entities developed into the Private Interest Foundation or "Stiftung", as it is known in German.

But why create a new investment vehicle so similar in structure to the Trust? The need arose mainly because the use of the Trust had practically disappeared from the European Continent by this period. Although it is true that the Trust was an instrument that had been widely used in Europe since the Middle Ages, it was abolished during the French Revolution being considered as an instrument used for the benefit of the Nobility to perpetually protect their assets. 

After Napoleon's conquest of Europe, the ordered codification of Roman Law spread, mainly within Central Europe, rendering the Trust practically non-existent and viewed as an outdated Anglo-Saxon instrument.  From this point on the preference of the Foundation over the Trust in the use of structures for the protection of assets and inheritance planning began to spread throughout Europe. 

The Liechtenstein Stiftung was born of necessity during a time of crisis to be used as an improved substitute for the Trust.

Aside from its wide popularity in Europe, owing largely to the fact that its origins were European, the Foundation has been recognized legislatively and by courts in various jurisdictions.  It has been recognized in legislative form by the governments of Liechtenstein, the Dutch Antilles, Holland, Austria and Panama, and most recently Bahama and Nevis have seen the light with a lees effective common-law version, all of which have passed laws regulating the same.

Foundations have also been recognized by courts in countries such as The United States, England, Canada and Australia, adding in turn credibility to its structure and operation, and confirming that any revision that is made to its structure should be adjusted to the law of the jurisdiction where it originated.

The Panama Private Use Foundation has less Government involvement and greater flexibility than the each of the two Liechtenstein laws, coupled with a moderate cost, it has become the highly favored choice amongst dicrimintating professionals and their clients. Canada Offshore is the only known provider to successfully draft the Panama Charter to be compliant with the laws of Canada, and subsequently with the USA, UK, and other high tax nations for an offshore solution that works where the stock Charter does not. We can open a bank or brokerage account where the Foundation is the beneficial owner of the IBC account, not you personally, creating substance to the legal structure and proof of your distance.