Estate Structuring in Panama

Private Interest Foundations and Trusts

K&B Family Office

Asset Protection, Estate Planning, and Family Succession in Panama

Are you looking to protect your wealth and plan for family succession?

Panama has become one of the safest and most efficient international jurisdictions for estate structuring, asset protection, and succession planning.
At K&B Family Office, we assist families, entrepreneurs, and high-net-worth investors in safeguarding their assets, optimizing their wealth structures, and ensuring the orderly and efficient transfer of their estate to future generations.

Asset Protection: Why Is It Essential?

Asset protection is the legal process of structuring and shielding wealth to mitigate risks such as lawsuits, claims, seizures, or unexpected litigation.
This strategy is widely used by:

• Entrepreneurs in high-risk industries
• Real estate investors
• Professionals exposed to civil liability
• Individuals with rapidly growing wealth
• Multinational families or those with complex wealth structures

Estate Planning: Organize, Protect, and Transfer Your Wealth

Estate planning ensures that your assets are managed and distributed according to your wishes, both during your lifetime and after your death.

A strong estate plan should include:

• Clear rules for asset management
• Comprehensive protection against legal risks
• Explicit succession directives
• Tax planning and optimization
• Structures for incapacity or emergency situations

In Panama, the two most widely used and effective tools for asset protection and estate planning are:

• Private Interest Foundations (PIF)
• Trusts

Both structures offer confidentiality, asset protection, and efficient succession mechanisms.

Private Interest Foundations in Panama

The most widely used tool for inheritance planning and family wealth protection

Private Interest Foundations, regulated by Law 25 of 1995, are legal entities specifically designed to:

• Protect family assets
• Avoid lengthy and costly probate processes
• Maintain intergenerational control of wealth
• Manage assets located inside or outside Panama
• Replace conventional wills
• Administer family investments, assets, and complex structures

Key Characteristics

• Independent estate: Complete legal separation from the founder’s personal assets
• Asset protection: Foundation assets are immune from seizure or attachment
• High confidentiality: No public registry of beneficiaries is required
• Tax exemption: Income from foreign sources is tax-exempt
• Fast incorporation: 5 to 7 business days

Common Uses

• Multigenerational family foundation
• Professional management of assets and investment portfolios
• Protection of minors or vulnerable individuals
• Charitable, humanitarian, or religious purposes

Trusts in Panama

Flexibility, regulatory security, and operational efficiency

A trust is a contract whereby the settlor transfers assets to a licensed trustee, who manages them for the benefit of designated beneficiaries.

Advantages of a Trust

• High flexibility in objectives and structuring
• Comprehensive asset protection
• Private contracts between the parties
• Regulatory oversight by the Superintendency of Banks of Panama
• Commercial activities permitted, unlike Private Interest Foundations

Typical Uses of a Trust

• Family succession planning
• Administration of inherited assets
• Structured co-investment vehicles
• Guarantees for complex commercial transactions
• Asset protection for individuals with special needs
• Real estate and development project administration

Which Structure Is Right for You?

Comparison: Foundation vs. Trust

Private Interest Foundation — Ideal for:

• Structured estate succession
• Family wealth protection
• Administration of investment assets
• Replacement for conventional wills
• Multigenerational estate plannin

Trust — Ideal for:

• Commercial and operational activities
• Investment and development projects
• Co-investment vehicles between partners
• Professional real estate management
• Guarantees in business transactions

The choice of the optimal structure depends on multiple factors: the nature and location of your assets, tax residency, risk exposure, and your short-, medium-, and long-term objectives.

At K&B Family Office, we conduct a comprehensive Wealth Diagnostic to identify the most efficient structure tailored to your needs.

 

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K&B Family Office

Experts in Estate Structuring in Panama

We offer strategic advisory and full execution in:

• International estate structuring
• Asset protection in Panama
• Private Interest Foundations (PIF)
• Regulated Trusts
• Family governance
• Succession planning
• Professional fiduciary administration

We work with local and international families and investors who value the security, confidentiality, and fiscal efficiency that Panama provides.

Request for a Confidential Estate Consultation

We design tailored structures to protect your wealth today and ensure efficient transfer to future generations.

Contact us to schedule a private session:

Jorge Ávila, TEP
Head of Fiduciary & Compliance — Partner
Tel: +507 308 5871
Email: jorge.avila@kbfamilyoffice.com

Specialists in international estate structuring and asset protection