Many people do not understand the difference between an "offshore foundation", "offshore corporation" and an "offshore trust".

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.

In Panama an offshore foundation is not owned by anyone. In fact it cannot be owned according to Panama law. A foundation can own a bank account and corporation. A foundation / corporation combination is the most respected anonymous offshore asset protection existing today.

One of the greatest features of an offshore foundation is that a judge or court cannot order funds to be repatriated because a foundation is not owned by anyone. The order would be illegal and no judge would make an illegal order, and if he did, it would easily be overturned.

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.

Unlike onshore trusts, which are commonly used in estate planning, an offshore foundation is strictly enforced by Panama courts. In the event of death, family members will not be entering into litigation to try and break the foundation. It is common for an onshore trust to be broken for any number of different reasons. If you want your wishes followed to the "letter" then a Panama foundation is your best option.

One benefit that cannot be overlooked is the tax advantage of an offshore foundation. It is not owned by anyone and it does NOT pay tax on any money it manages (as long as it is not derived in Panama).