The Panamanian Foundation has had a history as an estate planning and protection tool in Europe. The Panamanian Foundation is modeled on the one adopted in Liechtenstein in February 1926. There are no significant departures from the Liechtenstein Foundation in the Panamanian version, except that the Panamanian Foundation is less expensive.
Foundations share both features of a trusts and corporations.
A council governs the Foundation, much like a corporation s board of directors. At the same time, Foundations are used to achieve testamentary goals that are usually accomplished by a trust, or even a will. A Panamanian Foundation of Private Interest is established when a Memorandum of Foundation has been drafted and filed at the Public Registry. This information, which must be officially registered in order to establish a Foundation, is largely a matter of procedure and therefore preserves privacy for those seeking discretion in their estate planning affairs. The name may be in any language and must include the word Foundation.