|
|
| The
inherent features of a Foundation |
Features
derived from. |
| Common
Law trusts |
International
Business Companies |
| The Founder(s)
and Beneficiaries
are not answerable for liabilities
of the Foundation and vice versa |
The Founder's or any
third party's assets
transferred to a Private Foundation become the property
of the Foundation and henceforth are separated from
his/her assets |
Anonymity to the Beneficiaries:
their names are not filed in public records |
| Bahamas foundation: the assets effetively transferred to a foundation shall be the property of that foundation. Panamanian foundation: The creditors may claim
the Founder's or any third party's endowments and/or
gifts only within 3 years after their transfer to the
Foundation's assets. None of them recognizes forced heirship. |
The Founder is akin
to a trust Settlor
as he alienates his property in favour of the Foundation |
Tax exempt on world
wide income outside of Bahamas/Panama, a fixed Franchise Tax
of US$500/US$300 and Registered
Office Fees must be paid annually instead. Bahamian foundations are obliged to have a resident secretary as well. |
| May function as a legal
substitute for a will superseding the inheritance laws
(i.e. forced
heirship) of the Founder's jurisdiction; it may
come into force in case of death of the Founder |
The Foundation Council
is similar to Trustee
as it administers the assets assigned to the Foundation
by the Founder and third parties |
It is a distinct
legal
entity registered with the Public Registry |
| No shares
and Share
Certificates are issued |
The Protector, who
oversees the Foundation Council is envisaged in both
Private Foundation and Trust structure |
The Foundation Council
may meet anywhere in the world |
| There are no owners
of a Foundation's assets
except for the Foundation itself |
Can be revocable: i.e.
the assets may be returned to the Founder, and irrevocable
(similarly, there are revocable and irrevocable trusts) |
Audit and/or filing
of tax returns or financial statements is not required |
| The duty of the Founder
is to transfer the initial endowment of not less than
$10,000 |
The Founder may be
a member of the Foundation Council and a Beneficiary.
In a trust the Settlor
may be the Trustee or a Beneficiary |
Simple day-to-day administration
scheme: Foundation Council is similar to the Directors'
Board of an IBC |
| May be used for family,
charitable, scientific, religious or other non-profit
purposes |
A Beneficiary of the
Foundation may bring suit if the duty of the Foundation
Council is breached (the same way Beneficiaries of a
Trust may suit the Trustee) |
Possible using of Nominees,
inclusive of the Nominal Founder |
| Any third parties may
as well make contributions to the Foundation assets |
There is a separate
confidential document - ARTICLES in case of Bahamian foundations or REGULATIONS for Panamanian foundations stipulating
the names and details of the Beneficiaries and all procedures
of delivery and distribution of benefits. A Letter
of wishes in a Trust has some similar functions. |
Must have a Registered
Agent in the jurisdiction of incorporation |
| Panamanian foundations cannot undertake commercial
activities on a regular basis. Nevertheless, they may
engage in commercial activities from time to time, when
the profits are used for the objectives of the foundation. |
The Protector
can remove the Foundation Council and appoint another
members (in a Trust the Protector often has the same
right in relation to the Trustee) |
Bahamian foundations can be engaged in commercial activities.Both Bahamian and Panamanian foundations can hold shares of
daughter
companies or subsidiaries
and receive dividends |
| The assets of the Foundation
cannot be used to satisfy the obligations of the Founder
or of beneficiaries (e.g. lawsuits, divorce) |
May keep and manage
checking, securities, trading, merchant, savings, deposit,
investment, and other types of accounts with any financial
institution of the world |
