1. TheUltimateInAssetProtection
Resource Management 301 Private Interest Foundations Panamá Law #25 of 1995
Keep hitting the down-arrow (  ) and reading. It is the fastest way, ever, to learn!
The financial “tool of choice”
of the Super-Rich.
[This is adapted from our four day workshop presentation on the Golden Horseshoe.]
A presentation for United States interested parties by:
Bernie Besherse,
on behalf of Beyt Din Hillel.

2. TheUltimateInAssetProtection
First of all
I am not a lawyer.
I am a researcher, a writer, and a teacher
I am not a real estate agent
I am not a banker
I am not a CPA
I’m sort of like Robert Kyosaki’s poor dad, -kind, honest, and intelligent, but not rich.

3. TheUltimateInAssetProtection
I would like to welcome you all. Especially any law enforcement officers that may be here.
I make mistakes, just like any other man. I do not want to mislead anyone by giving them false information. I am asking you that if you believe that I am in error in anything, please interrupt me and inform me immediately of anything that I may say or do that you would report as being illegal or even potentially illegal, so these good people do not leave this place with false impressions of the law.
I am offering you an administrative remedy so we may avoid the need for a legal remedy.

4. TheUltimateInAssetProtection
I do not compete on price.
I have found that when I pay peanuts, I get monkeys. For those who want to shop for their S.A. or Foundation based upon price, I hope that they can read and understand legal Spanish, and I wish them all the luck in the world.
I am getting to the age where I only have time to work with people who understand the value of using the very best quality tools, and are willing to pay for them.
I will still help you with getting access to organic foods, and will share folklore about natural and traditional remedies for ailments, but cannot help you with financial and business documents that I do not provide.

5. TheUltimateInAssetProtection
Private Interest Foundation the tool of the super-rich
Article 1. Establishment; Endowment.
A foundation of private interest may be established by one or more natural or juridical persons, acting in their own names or though another person in accordance with this act. An endowment shall be made at the time of such establishment, to be utilized exclusively for the objects of the foundation set forth in its memorandum of foundation. The initial endowment may be increased by the person who established the foundation, who shall be called the founder, or by any other person.

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Article 2. Governance; Applicable Law.
A foundation of private interest shall be governed by its memorandum of foundation and its regulations, as well as by the provisions of this act and by any other applicable laws and regulations. The provisions of Title II of Book I of the Civil Code shall not be applicable to foundations of private interest.
So, like the Corporation Sole, the PIF is governed primarily by its own charter, and only incidentally by the statutory law. This makes the wording of the charter extremely important! Don’t go bargain hunting!

7. TheUltimateInAssetProtection
Article 3. Prohibition of Profit-Oriented Activities.
Foundations of private interest shall not be established for the purpose of engaging in profit-making activities. Notwithstanding the previous sentence, they may from time to time engage in commercial activities or exercise rights of ownership of business enterprises forming a portion of the endowment of the foundation, provided that the result or economic proceeds of such activities are applied exclusively to the purposes of the foundation.
And, like the corporation sole, its incidental business activity is limited to things that are beneficial to the foundation.

8. TheUltimateInAssetProtection
Article 11. Foundation’s Assets Separate.
For all legal purposes, the property of a foundation shall constitute an estate separate from the personal assets of its founder. Accordingly, the property of a foundation shall not be seized, attached nor made the object of a precautionary action or measure, except for obligations incurred or for damages caused in furtherance of the purposes or objectives of the foundation or for legitimate rights of its beneficiaries. In no case, shall such property be used to satisfy the personal liabilities of the founder or of the beneficiaries.
As with the Corporation Sole, there is no “alter ego.”

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Article 14. Effect of Extraterritorial Laws.
The existence of legal provisions respecting testamentary matters in the domicile of the founder or of the beneficiaries shall not be assertable against the foundation, affect its validity or impede the fulfillment of its objectives set forth in its memorandum of foundation or its regulations.
Article 15. Rights of Creditors; Limitation of Actions by Creditors.
The creditors of the founder or a third party shall have the right to contest the contributions or transfers of goods to a foundation, when the transfer constitutes an act of fraud upon the creditors. The rights and acts of such creditors will expire after the three (3) years counting from the contribution or transfer of the goods to the foundation.
It says “constitutes,” not “may constitute.”

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Article 27. Exemption of Foundation from Certain Taxes.
There shall be exempt from all imposts, contributions, taxes, encumbrances or payments of any class or kind, the establishment, modification or dissolution of a foundation, as well as the transfer, transmission or encumbrance of the property of the foundation and the income derived therefrom or any other action with reference thereto, whenever such property constitutes: Property located outside of Panamá.

11. TheUltimateInAssetProtection
Money deposited by natural or juridical persons whose income is not derived from a Panamanian source or not taxable in Panamá for any reason.
Shares or bonds of any kind issued by corporations whose income is not derived from a Panamanian source or whose income is not taxable for any reason, even when such shares or bonds are deposited in the Republic of Panamá.
They shall also be exempt from all taxation the transfer of real property, titles, certificates of deposit, bonds, money or stock made to fulfill the purposes or objects of a foundation, or upon its dissolution, to relatives of the founder within the first degree of consanguinity and to the spouse of the founder.
This is truly for the super-rich! Poor people can’t make this kind of law!
But it does not help in a Nominee-Founder PIF.

12. TheUltimateInAssetProtection
Article 34. Foundations Subject to Money Laundering Laws.
To avoid improper use of foundations of private interest, there will be applied to their activities, all of the provisions of Executive Order No. 468 of 1994 and any other measures for the purpose of combating the laundry of money from drug trafficking.
When there is no specific provision against money laundering for crimes other than drug trafficking, how safe is your honest money?

13. TheUltimateInAssetProtection
Article 35. Confidentiality.
The members of the foundation Council and of the organs of supervision, if they exist, as well as the public or private employees who have knowledge of the activities, transactions or operations of foundations, shall at all times maintain restraint and confidentiality with respect thereto. Violations of this obligation will be punished by imprisonment for 6 months and fines of fifty thousand Balboas (B/.50,000.00), without prejudice to civil liability.
The provisions of this article are applicable without prejudice to information required to be revealed to government officials and inspections that they make in accordance with law.

14. TheUltimateInAssetProtection
Article 36. Resolution of Certain Controversies.
All controversies for which no procedure is specified in this act shall be resolved by summary proceedings.
The memorandum of foundation or regulations may provide that any controversy that arises concerning the foundation will be resolved by an arbitrator or arbitrators, as well as the procedures for such arbitration. In the event that no such procedures are so provided, the rules contained the Judicial Code shall apply.
Smart wording in the PIF document puts them in the hands of a favorable arbitrator and keeps them out of court!

15. TheUltimateInAssetProtection
While PIFs cannot be engaged in commerce, they can own companies that do engage in commerce, and still be tax free as long as the company operates outside of Panamá.
PIFs can act as grantors and beneficiaries on Foreign Trusts.
PIFs make and receive donations to/from anywhere.
A PIF can own land in Panamá.
Such land is instantly useable by all beneficiaries without being subject to probate.

16. TheUltimateInAssetProtection
A PIF can:
Own property
Receive donations
Use property and donations for beneficiaries
Act as trustee on Trusts.
So we see that 80% of the rights and powers of a Corporation Sole in the USA are also among the rights and powers of a PIF in Panamá.
The only thing that a Corporation Sole can do that a PIF cannot do is exercise internal, legal jurisdiction. Private Interest Foundations are only bodies corporate, whereas Corporations Sole are bodies politic & corporate.

17. TheUltimateInAssetProtection
NO ALTER EGO
Article 11 of the PIF law specifically provides that the PIF can never be considered an alter ego of the Founder.
This is NOT specified in the Corporation Sole laws of the various states, but it is well established in the body of over 500 years of common-law testing in England and the United States for corporations sole.
Because this is established in law in Panamá, this is the one area where the PIF is slightly better than the Corporation Sole.

18. TheUltimateInAssetProtection
IRS Form 1040B, Part III
“You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; or (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust.”
Do you have taxable interest or dividends?
Or does the PIF have UNTAXED interest and dividends?
Do you have a foreign account?
Or does a PIF have an account?
Do you receive a distribution from a foreign account?
Or does a Corp Sole receive donations and make transfers?

19. TheUltimateInAssetProtection
IRS Form 1040B, Part III
“7a At any time during 2014, did you have an interest in or a signature or other authority over a financial account in a foreign country, such as a bank account, securities account, or other financial account? See page B-2 for exceptions and filing requirements for Form TD F …………………………
b If “Yes,” enter the name of the foreign country …………...”
Do you have signatory control over the Foreign accounts? NO!
Do you have “anonymous” debit cards for the accounts? NO!
Can you sign any financial account, at all for the trusts? NO
Do you have authority over the account, or do you have authority over the Foundation Council? Which? Does 7a apply? NO!

20. TheUltimateInAssetProtection
IRS Form 1040B, Part III
“8. During 2014, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If “Yes,” you may have to file Form See page B-2 …...”
Do you receive a distribution from a foreign Trust?
Or was it another foreign grantor trust?
Are you the grantor on a foreign Trust?
Or is it a Private Interest Foundation?
Do you make a transfer to a foreign Trust?
Or does an LLC make the transfers?

21. TheUltimateInAssetProtection
So, you can see that the law is working FOR you.
The Super-Rich make the laws to work for themselves, and depend upon those who are not as well connected as themselves to pay for all of the benefits that they enjoy.
In the words that my mentor used in the “Peaceful IRS Procedures” section of our workshops, years ago:
“People only pay taxes because they lack sufficient knowledge of the law so that they don’t have to.”

22. TheUltimateInAssetProtection
Private Interest Foundation the tool of the super-rich
Using the PIF, the Foreign Grantor Trusts, the LLC, and the Corporation Sole for the purpose for which each entity was written, lets you truly
“Own nothing. Control Everything.”
You set up the contracts correctly, so you maintain control of the entities that you touch, and you give up control at the right times and places that conform with the legal requirements for Trusts to be legal and enforceable. You file the paperwork you must file, and others file the paperwork that you must NOT file.

23. TheUltimateInAssetProtection
Beware of bargains in brain surgeons, and be just as cautious of business & estate planners.
As it states in the law, the PIF was created so you can protect your family’s estate.
Standing alone, the PIF can protect your estate, but lacks a pre-determined means of increasing the estate.
Used in combination with other entities, the estate grows with minimal taxation, maximum protection from lawsuits, and has a built-in way of reducing estate erosion by compounded interest.
Use the PIF to fund your Golden Horseshoe.

24. TheUltimateInAssetProtection
Conference Calls on Saturday at 9:00 PM Eastern & 6:00 PM Pacific
Phone # to Dial: (425) Use Conf ID: #
To request services:
MM #401/ Suite 116,
1702 N. Woodland Blvd.,
DeLand, Florida, 32720
The most concise source of truthful information on Safe Asset Protection.