This article will explore the details surrounding some main people who must be affiliated with a foundation for it to work. Many of these people or positions will be filled by Panamanians. The four main positions, in no particular order, are a founder, a council, a protector and a beneficiary. The following should help you understand what each of these terms means.

To start out with, a founder is someone who actually creates the foundation. We know what you are thinking and no this does not mean you. See the founder’s name must be put in a public database, which means using you as the founder will not work. We will give you a founder who knows nothing about you who will start your foundation in his name. Remember that this person doesn’t have any right to do anything with your assets. Just because the foundation is in his name does not mean he can do anything he wants with the foundation’s belongings. The only purpose of a founder is to have a name written down in a database, nothing else.

Moving on, the council plays a slightly more significant role. Think of how a company has many CEOs, managers and directors working under the big boss to make the company work better. In the same way, you must choose a council to oversee the foundation. This council will be selected by us and is something else that you will never have to worry about. Like the founder, their names will be listed in public databases for all to see. Also like the founder, you never have to reveal yourself to your council and you can replace them at any time you like with no problem. The council has no rights to do anything with your assets that you do not ask them to and are often tracked by the Panama government in this sense. If they do step out of line, you can send them to jail almost immediately and replace them with new personnel. If you have a corporation, you can replace this council with the corporation as well.

Now we come to the most important role, the protector. This, in most cases, will be you. As such, the protectors name is not listed in any public databases and is known to very few people within the foundation itself. The protector has full rights in disclosing what he or she would like to do with the foundation’s assets, which in turn usually belong to the protector in the first place. He or she can, as mentioned before, also replace any council member at any time that he or she is not comfortable with anymore. To become a protector, you must sign a document stating yourself as the protector and also gain the signature of the council in place. This may seem like it is too risky, privacy-wise, but this document does not have to be shown to anyone outside of the foundation and can be kept hidden wherever you feel it to be safe. Furthermore, if you don’t want your name to be connected to the foundation at all, you can always appoint a friend or family member or even a trusted council member as a protector to act in your interests.

Finally, you can name some beneficiaries to your foundation, that you do not technically own or operate, as well. This is basically like writing a will in case something happens to you. If you are in danger or somehow become ill and fall, you can be sure that your most precious possessions will still be taken care of by those you trust. You can leave an in-depth list of beneficiaries, and the order in which they should be contacted, with the foundation and they will carry out your wishes. Your foundation could last as long as a hundred and twenty years if you have enough beneficiaries!

Those are the four key positions within a foundation in Panama. If you have any further questions, feel free to ask us and we will be happy to help.