Panama asset protection is achieved by hiring a Panama law firm to create legal entities to hold and 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.
Diversification is key. Several Panama corporations owning different assets separates the assets for better asset protection. If one is sued and if he or she does not own any assets, then 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 offshore asset protection they tend to tell the plaintiff to find another lawyer.
Panama’s asset protection system provides complete privacy. Panama laws allow for private 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 without a court order.
Finally, offshore asset protection in Panama provides an estate planning system which will last for generations.
In conclusion, Panama asset protection offers many benefits. Lawsuit protection 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.