9/24/2020
FAMILY TRUST - PANAMA LEGAL CENTER
therefore be kept con dential. Privacy; Panama has a secrecy & privacy law that prohibits disclosure of any information to third parties. Estate planning; Panama family trust is the best vehicle for estate planning & strategy. Fast set Up; Panama trust can be set up and registered in less than a week. Low Maintenance; Panama trust does not pay any taxes and the only fee that is collected from a Panama trust, is a yearly low at franchise tax. Low Set up cost; A panama trust initial cost is less than $5,000.
Family Trust Services We Provide At, panamalegalcenter, we perform the followings; • meeting with you to discuss your intentions and requirements; • preparing a trust deed to match your particular situation; • preparing a memorandum of wishes; • preparing new wills and enduring powers of attorney; • discussing asset transfer options with you; • completing the transfer of your assets to your family trust; • if required, arranging for the restructure of your nancial arrangements (such as the lending secured over any property to be transferred to the trust). In addition we advise you of ongoing costs depending on the nature of your trust and its assets, legal and accounting work required to administer your trust.
How Panama Trust Works? With the most favorable legal framework for foreigners who wish to invest in Panama, the Panama trusts has become the best place to set up family trusts for foreignors. It makes one hundred percent sense to create a trust fund in Panama because Panama provides; Ironclad asset protection, privacy, con dentiality and tax exemptions to name a few. The Panama legal entity known as Trust is regulated by Law No. 1 established in 1984. Under this legislation, a trust is a legal act whereby a settlor transfers property to a trustee for its administration according to the received instructions. It is necessary to draft a Trust Agreement, ie, the legal document that establishes the instructions and forms of administration of the assets. These assets, while being under the name of the trustee, are not part of their personal wealth and may not be seized or garnished to meet the demands made to the bene ciary in the country of ori in Panama jurisdiction where this trust was established, the owner is the trustee. Under this legal act assets of any kind can be transferred such as; real estate properties, cash, bank accounts, stocks, bonds, warrants, vehicles, etc. Moreover, these trusts o con dentiality as they are created in a private document without requiring registration in a Public Registry. In other words Panama o ers secrecy to its clients and the only requ is the presence of a Panamanian notary public to authenticate the signature of the founder and administrator, pledging to ensure the con dentiality of the transaction. However, con dentiality and asset protection are not the only reasons why Panama trusts are established in Panama as the ideal place. Other advantages such as vast tax ex makes Panama the most ideal country to set up a family trust. Based on our experience, no other country or territories o er such bene ts to foreign investors. For tax ex reasons, Panama is called a “TAX HAVEN” jurisdiction by all experts. In addition, Panama is an independent sovereign country in Latin America that its political system is democratic and Panamaninas elect their president every 5 years to serve Pan only one term. Panama’s currency is U.S. dollar and would not uctuate. In addition to the above, Panama banks are very secure and safe.
How To Administer A Family Trust? Administering a family trust is very important to make sure all objectives of the grantor is met for the bene t of its bene ciaries. Your trust achieves its objectives by separating ow of your family’s assets from you personally. If the trust is not administered properly to make this separation of ownership clear then the trust could be challenged as a sham. G and/or the trustees could face claims for breaching their duties as trustees. Such challenges could be made by a business creditor, relationship partner, the IRS, etc. If a cha successful then the trust assets could be treated as your own personal assets and the bene ts available through the trust structure will be lost. General administrative requ When establishing your family trust, your panamalegalcenter will discuss with you the requirements for administering your trust properly. They will also be able to assist with the administrative requirements for the trust if required. In general, trustees of a family trust should: • meet on a regular basis, at least annually, to review the trust investments and the needs of the bene ciaries; • be involved in all trust decisions and record their decisions in writing; • ensure that they comply with the legal obligations imposed on trustees; and • ensure that the trust meets its income tax, if any. All trustees are expected to exercise a reasonable level of responsibility and prudence in carrying out their responsibilities. The Act therefore provides a useful guideline for any trustee making decisions. As a general guideline, trustees should consider the following matters: 1. the desirability of diversifying trust investments; 2. the nature of existing trust investments and other trust property; 3. the need to preserve the real value of the capital or income of the trust; 4. the risk of capital loss or depreciation; 5. the potential for capital appreciation;
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6. the likely income return;
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