Panama asset protection is achieved by hiring a Panama law firm to create legal entities to protect your assets. The most popular method for Panama asset protection is to use Panama offshore corporations to own different assets. One Panama corporation can own your vehicles. Another Panama corporation can own your home. Other Panama corporations can own your jewelry, fine art works, antiques, and other valuable assets. The reason for having several corporations owning different assets is to avoid having one corporation owning all assets from getting into legal trouble.
A corporation can be sued in many ways. For example, a corporation owned car accidentally kills or seriously injures someone resulting in a big lawsuit where the only asset subject to a civil court judgment seizure is the car. If one corporation owned all of the assets and gets sued over a car accident with a one million dollar judgment, all of the assets can be seized to pay off the judgment. Several Panama corporations owning different assets separates the assets for better asset protection. The driver of the car will also be sued and if he or she does not own any assets and the court judgment will not be able to seize anything. This is known as a “judgment proof defendant” which every plaintiff’s lawyer hates. That is because nearly every lawyer gets paid on a percentage of the lawsuit judgment which is collected. This is known as a “contingency” payment where the lawyer gets paid nothing unless he or she wins the lawsuit and appeal and can seize assets to pay the judgment. Plaintiffs’ lawyers do not want to work for free. When they encounter a judgment proof defendant with comprehensive Panama asset protection they tend to tell the plaintiff to find another lawyer.
Panama offshore asset protection also provides tax free income from the bank account interests, as well as, any income earned outside of Panama. A Panama corporation can open a brokerage account and have a global platform to make investments, buy and sell corporate stocks, commodities, precious metals, and international currencies. As long as these trades are made outside of Panama’s jurisdiction, all of the profits will be free from income taxes.
Panama’s asset protection system provides complete privacy. Panama laws allow for total anonymous ownership of its corporations. Panama’s bank secrecy laws are amongst the best in the world so each corporation’s bank account information is closely guarded by the bank as it is a crime for any bank employee to divulge any account information to an unauthorized person or government agency.
Finally, offshore asset protection in Panama provides an estate planning system which will last for generations. Leaving a will which will get probated in a court of law is time consuming and costly. Having all your assets owned by offshore legal entities avoids probate and instantly provides control of the assets by the beneficiaries upon your death or incapacity.
In conclusion, Panama asset protection offers many benefits. Lawsuit protection, tax free income, and a perpetual estate planning system are all essential for protecting your assets. Contact Us for assisting you with setting up a Panama corporation and/or Panama Private Interest Foundation.