The result is a structure that offers significantly greater privacy and flexibility than would be available using strictly traditional mechanisms. This page introduces the Private Interest Foundations and highlights some of their distinguishing features. The Private Interest 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 characteristics of both trusts and corporations.
A council governs the Foundation, much like a corporation's board of directors. However, Foundations are used to achieve testamentary goals that are often accomplished by a trust, or even a will. A 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 does not jeopardize privacy in any way. The objectives of the Foundation may include anything except the generation of profits.