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HOW TO ACHIEVE TOTAL ASSET PROTECTION You read about Panama Offshore Corporations and Trusts. Their main purposes are to Protect your Assets and provide you with Privacy regarding your financial affairs. Let us explore the ultimate in protection and privacy. The Complete Offshore Structure is a combination of Panamanian legal entities. A Private Interest Foundation owns an Offshore Corporation. This is the utmost in Asset Protection, Privacy, Anonymity, and Convenience! Here is How It Works: The Panama Corporation owns all major assets (real estate, commercial businesses, commercial bank accounts, etc.). The Foundation acts as a holding company for the Corporation. The Foundation also holds passive investment accounts and bank accounts. What is a Foundation? The Panamanian Private Interest Foundation is a legal entity that acts like a Trust and operates like a Corporation. Law No. 25 of June 12, 1995 created and regulates Panama Private Interest Foundations. The Panama Private Interest Foundation is based on Private Interest Foundation models from three different jurisdictions: Liechtenstein, Switzerland, and Luxembourg. Panama carefully designed the Panama Private Interest Foundation as a more modern, flexible, and affordable Asset Protection & Estate Planning vehicle for people worldwide. Non-Profit: The law specifically states, “private foundations shall not be profit oriented.” Exception: Foundations may engage in commercial activities on a non-habitual basis or own shares of business companies and receive passive income – such as from rental properties or dividends. Foundation Structure: The Private Interest Foundation has four main components: 1. Founder: The founder creates the Foundation in the Panama Public Registry. 2. Foundation Council: The council serves the same function as directors do for a corporation. The council’s member names and passport numbers are registered in the Panama Public Registry when the Foundation is incorporated. In order to protect the privacy of clients, law firms generally provide a nominee (straw man) council, and provide pre-signed, undated letters of resignation from the nominee council. Thus, the council has no control. 3. Protector: The Protector ultimately controls the Foundation. When the Foundation is created, the council appoints a Protector through a notarized Private Protectorate Document. Since the document is private & non-publicly registered, the Protector remains 100% anonymous. Thus, the Protector has full control over the Foundation and all of its assets. 4. Beneficiaries: The Beneficiaries are appointed through a Private Letter of Wishes, written by the Protector. The Letter of Wishes is a private document keeping the beneficiaries 100% anonymous. Only the Protector can change or modify The Letter of Wishes. 5. Registered Agent: The Act requires that every Foundation have a registered agent, who must be either a Panamanian lawyer or law firm. Capitalization: Only US$10,000 is required as the initial endowment of a Foundation. FOUNDATION PURPOSES: There are 4 purposes for a Foundation. 1. Holding Entity for the Corporation: A Foundation has no corporate shares. The Foundation can be the sole shareholder of your corporation. You control the Foundation anonymously through a Private Protectorate role. As Protector, you appoint the beneficiaries through a private Letter of Wishes. Since the Protector and the Beneficiaries are both appointed through non-public (private) documents, they remain 100% anonymous. 2. Beneficial Owner when Opening Bank Accounts: Due to the global scare of terrorism, most offshore tax haven jurisdictions implemented laws requiring their banks to obtain “declarations of beneficial ownership” when establishing corporate bank accounts. In Panama, the banks maintain this information with rigorous confidentiality under their strictly enforced bank secrecy laws. If an owner wishes to remain anonymous, the Foundation can serve as the beneficial owner. The nominee Foundation council can sign the declarations on behalf of the Foundation keeping the true owner 100% anonymous. 3. Distribution of Your Assets to Your Heirs: Under Panamanian laws, no one may freeze a Foundation’s assets under any circumstances – providing the ultimate asset protection vehicle. The Panama Private Interest Foundation is specifically designed to cherish, protect, and distribute your assets to your beneficiaries upon a triggering event, such as your death or incapacity. Your Foundation’s Letter of Wishes (written by the Protector) details the Foundations assets, list of beneficiaries, and how and when those assets are to be distributed to the beneficiaries. Since the inheritance comes from outside of the beneficiary’s domestic country, the inherited assets are not subject to any of the standard taxes and legal procedures. Through the Foundation, your heirs will receive their inheritance free of probate, gift taxes, estate taxes, inheritance taxes, or legal delays. 4. Facilitates the Transfer of Funds Offshore, and the Return of those Funds back Onshore: Since the Foundation is a non-profit entity, it may receive donations, and it may give donations/grants, etc. to anyone you choose. Hence, you can donate your funds to the Foundation. In turn, the Foundation can provide educational grants, charitable donations, etc. to anyone you choose. To Summarize: Foundations Protect Your Assets, act as your Holding Company, provide total Estate Planning, and act as a Charitable Entity. Rights of Heirs: Under Panamanian law, the founder’s heirs do not have a right to revoke the creation of the Foundation, or the right to object to the transfer of properties to the Foundation. The laws of the founder’s country regarding intestacy have no bearing on the validity of the Foundation – ensuring the Foundation’s objectives will be honored even in the event of the founder’s death. Features and Benefits Limited Liability Minimal Public Disclosure Avoidance of Testamentary Formalities Privacy of Assets In Conclusion: A Panama Private Interest Foundation has many advantages over a Trust. Limited Liability, greater Privacy, elimination of a Will and Probate, less Public Exposure, and Charitable functions are some of these advantages. Panama’s Public Interest Foundation law, Corporation laws, and strict Banking secrecy laws combine to provide one with the utmost in Asset Protection and Privacy. Panama Offshore Legal Services can provide you with a Complete Offshore Structure Package including new Panama Offshore Corporation, a new Private Interest Foundation, and a Panama Bank Account for only $3,050 USD. Panama Offshore Legal Services since 1998 with 7 English speaking attorneys in two offices and a support staff of over 30 paralegals, law students, accountants, and secretarial workers. For your Asset Protection, we recommend this English speaking Panama Law Firm: Panama Offshore Legal Services Contact them at this special e-mail address: Or Call them at: (507) 227 – 6645 Panama Offshore Legal Services www.panama-offshore-services.com Email: marketing@pos-inc.com Tel (Panama): ++ (507) 227 – 6645 Fax (Panama): ++ (507) 227 – 7485 Toll Free Voicemail / Fax (USA): 1- 800- 716 – 3452 |
How to Achieve Total Asset Protection
January 9, 2009 by panamasteve100Global Lawsuit Protection
January 8, 2009 by panamasteve100Everyone should be afraid of being sued with so many lawsuits being filed now days around the world.
You might think that you may never be sued.
How wrong you are!
Let us first take a look at how easy it is to be sued now days. One of the first dangers is being indirectly involved with a lawsuit.
THE DANGERS OF JOINT & SEVERAL LIABILITY
This is a legal concept whereby an individual could be sued as a second or third defendant without having been directly involved with the original injury to the plaintiff.
Here are some examples of how you can be sued for Joint and Several Liability:
1. Your business partner commits theft, fraud, or a personal injury in the course of conducting business.
2. Your spouse is accused of theft, fraud, or a personal injury and the plaintiff sues the entire marital community (including you).
3. You render assistance to someone who was injured by another person and the plaintiff sues you along with the person who actually committed the injury.
4. A friend or relative borrows your car and gets into an accident. As the car’s owner, you are sued along with the driver.
5. Your company is sued for sex discrimination committed by one of your employees and you are named as a defendant because it is your company.
6. Your real estate investment partnership, joint venture, or company is sued by the federal or a state government because toxic waste is discovered on the property.
There are many more examples I could provide. The main thing is that you can be sued and become jointly and severally liable for an injury to someone without having been personally negligent. All that is necessary is that you were connected in some way. If you are dragged into a lawsuit and the other defendants are without assets or insurance, you may end up being held liable for the full amount of the judgment!
WHAT ABOUT INSURANCE?
Many lawyers recommend you purchase at least $1 Million insurance for each of your businesses, homes, land, cars, motorcycles, and boats you own.
This will cost you $ thousands in premiums every year depending on how large a deductible (which you will pay to the plaintiff) you are willing to afford.
However, is that really enough?
$ MILLIONS CAN BE AT STAKE
Let us take a look at how large some of these lawsuit judgments can be.
There is a book entitled, The Professional Asset Protection Manual by Florida attorney Mark Warda (Galt Press) which lists some of the recent outrageous jury awards in the United States.
For example:
$84.5 million for children drowned and brain damaged in a swimming pool.
$49 million for a stillborn baby.$41 million for a misdiagnosis of abdominal pain.
$5.87 million for sponsoring a party where a guest later caused an auto accident.
$986,000 to a woman who lost her “psychic powers” after a CAT scan.
$300,000 for slapping a daughter twice on the face.
$75,000 for spraying perfume on a person without permission.$60,000 for cursing, which caused “emotional distress”.
Here are some other recent examples:
$12.7 million for a mistake in medication administered by a nurse.
$12 million to a doctor for failing to take a blood test for a rare disorder.
$7 million to a laborer who lost a limb at work on a construction job.
$160,000 to an employee who was “goosed” by fellow employees.
Do not forget the widely publicized $2.7 million award to Stella Liebeck (for her injuries from spilling some hot McDonald’s coffee between her legs while driving).
In addition to the court award, you must pay $ Thousands to your defense attorney!
Do not forget the many hours you will spend meeting with your attorney, answering written questions (interrogatories) from the plaintiff’s attorney, attending depositions where the plaintiff’s attorney will grill you, attending court hearings (motions), and the trial itself.
Add all of the time and expense to the psychological and physical stress you will endear.
Just because I am using examples from the United States, citizens of Canada, Europe, Russia, Central & South America, and even communist China are being sued for similar injuries.
HOW CAN YOU PROTECT YOURSELF?
The best solution is to strip you of all assets and become what is known as “judgment proof” amongst the personal injury trial lawyers.
Most lawyers charge their clients no direct fee for filing a personal injury lawsuit. This is known as a “contingent” fee. It means that the lawyer will collect no fee unless he wins the lawsuit and can collect the court awarded judgment amount.
Before a lawsuit is filed, a careful lawyer will research the defendant’s ability to pay a court judgment. If the defendant is “judgment proof” meaning, he has no insurance, no ownership of assets that can be seized to pay off a court judgment; the lawyer will not want to sue that defendant. That is because the lawyer will spend all of his time and money pursuing a lawsuit with no hope of ever being paid.
So, how can you make yourself Judgment Proof?
OFFSHORE CORPORATIONS, TRUSTS & PRIVATE INTEREST FOUNDATIONS
Owning a corporation set up in your own country may provide a little protection. However, a domestic corporation can be sued as well. In addition, your shares in a corporation are assets in which a judgment creditor can seize.
OFFSHORE CORPORATION: A better solution is to set up a corporation outside of your country (offshore). An Offshore Corporation can own real estate and vehicles in your country. For even better protection, set up different Offshore Corporations so each owns one of your major assets. For instance, one corporation owns your cars, another owns one piece of real estate, and another owns different real estate. As the old saying goes: “Don’t put all of your eggs in one basket.”
Therefore, use Offshore Corporations to purchase your homes, office buildings, apartments, condominiums, raw land, and vehicles. The corporations then rent them back to you. Now you are no longer the owner of these assets. They are owned by Offshore Corporations. You are merely a tenant.
Remember this, it is important that you sign a written lease agreement (preferably in front of a Notary Public) for these properties and duly Record them with the correct state or government agency requiring you to do so. For instance, a notarized Lease Agreement properly describing the real property must be filed with the appropriate county, state, or provincial government office.
Now you have written proof that you are not the owner of the real properties and vehicles, which you are using.
Also, remember to always pay your rent. If you have a written rental agreement that you violate by refusing to pay rent, it can be declared a sham by the courts. All of the rent you pay will be deposited into your Offshore Corporation’s foreign bank account.
As for cash, deposit as much money into the Offshore Corporation’s foreign bank account as you can. These cash assets will also be protected from any court judgment against you.
ONE WEAKNESS: While an Offshore Corporation can legally own and rent your assets back to you, there is still one weakness when it comes to Asset Protection. The corporation’s shares may be in your name, or if they are in a form called “Bearer’s Shares”, they are still in your control. In addition, a court could order such disclosures in a lawsuit.
You can avoid this weakness by having all of the Offshore Corporation’s shares held by either an Offshore Trust or a Private Interest Foundation. Then you can truthfully tell the courts that you do not have ownership in any foreign corporations or bank accounts.
IMPORTANT: Before you set up Offshore Corporations and transfer assets to them, here is one more important fact. You must transfer your assets before you get into legal trouble or become exposed to a lawsuit.
FRAUDULENT CONVEYANCE: This is a legal term for someone who tries to hide assets from creditors knowing that a lawsuit has or will be filed against him. It is an attempt to illegally hide assets. Such assets will not be protected from a court judgment.
If assets are transferred before any act which arises into a lawsuit occurs, those assets will be protected. In other words, create your Offshore Corporations now and transfer ownership of your assets to them before you get into trouble.
CONCLUSION
Asset Protection is necessary in today’s lawsuit crazy world.
While the steps we have summarized for you above may seem difficult and complex, they really are not. That’s because using experts who know how to set up Offshore Corporations, Trusts and/or Private Interest Foundations will make this easy for you.
For your Asset Protection, we recommend this English speaking Panama Law Firm:
Panama Offshore Legal Services
Call them at: (507) 227 – 6645
Panama Offshore Legal Services
www.panama-offshore-services.com
Email: marketing@pos-inc.com
Tel (Panama): ++ (507) 227 – 6645
Fax (Panama): ++ (507) 227 – 7485
Note: If calling to Panama from the US or Canada,
you must dial “011″ prior to the country code (507).
Toll Free Voicemail / Fax (USA): 1- 800- 716 – 3452
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