Many people have found Panama to be the best location in the world for asset protection. Individuals and companies have been given the ability to secure their assets without the fear of government intrusion or excessive judgments from frivolous lawsuits. The business model that includes Panama foundations, Panama corporations and offshore banking offers both identity and asset protection.

You need to protect your assets before something happens. Will your auto insurance cover all the expenses if you cause a traffic accident? It is very likely that it won't. In many parts of the United States, the minimum required liability insurance may not even cover the cost of one surgery. A rule of thumb for medical claims in such cases is three times the medical expenses. If you injure someone and the medical costs are $1 million, the medical judgment could run as high as $3 million. In addition, damages are typically awarded; jury trials can turn damage awards into million dollar proclamations of guilt as well. If you only have a state's minimum of $300,000 in coverage and the judgment is for $5 million, you are responsible for the remaining $4.7 million. 99 percent of American would be unable to satisfy a judgment like this, leaving confiscation of property and financial ruin as the alternatives to the lack of asset protection.

Asset protection only happens in advance; if you wait, it's too late. It is a felony to attempt to hide assets after a claim has been made. If you don't act and a tragedy occurs, you can't legally do anything. The good news is that the country of Panama has instituted a business model that allows you an affordable way to preemptively implement asset protection through Panama foundations, Panama corporations and offshore banking; this structure is completely legal and offers both identity and asset protection.

In 1995, Panama implemented to create the Panamanian Private Interest Foundation. Although this is a fairly new structure, this offshore foundation structure was created following the pattern of the Liechtenstein Foundation, which had successfully existed for over seventy years. For those who seek an offshore foundation, Panamanian Private Interest Foundation has several advantages over its Liechtenstein predecessor; it is much cheaper to establish, it is cheaper to maintain and it offers more flexibility while still protecting the assets of the holder.

• Identity protection - A Panama foundation is part of a plan that creates the most secure method of identity protection of any offshore foundation in the world.
• Asset protection -Your private or corporate assets cannot be garnished to satisfy judgments or liens and the financial statements of your offshore foundation cannot be compelled by courts in other countries because the records are anonymous.
• Tax haven - A Panama foundation has the welcome effect of a tax haven because Panama does not tax foreign-derived income and the holdings of the offshore foundation are unavailable to other countries.
• Easy to establish - A Panama Private Interest Foundation is very easy to create and maintain. If you use a capital company from Panama, most times they are able to create your offshore foundation without you even making a trip to Panama.
• Cost - A Panama foundation is a legal entity that is inexpensive to both create and maintain, creating a low-cost solution for asset protection.

In Panama, anonymous corporations are more commonly known as Panama bearer share corporations. These corporations have no registry listing the owners of the corporation; ownership is demonstrated through the printed stock certificate called bearer shares. Panama bearer share corporations can own real estate anywhere in the world under Panama law and can do business just like any other corporation.

• There are no reporting requirements.
• It is possible to run the corporation while maintaining anonymity.
• Once it is registered, it isn't necessary to register changes in its business plan or leadership.
• Paper shares of corporate ownership can be issued; this practice protects the corporation owner's identity.
• Reduction of income tax
• No inheritance, succession or gift taxes can be levied
• Reduction in legal liabilities in divorce or liability litigation cases
• No international trade tariffs
• No Panamanian tax return requirements for all foreign-derived income

Panama's banking system creates the final piece to this plan for asset protection. Panama has the strongest identity protection laws in the world for banking and has become the second largest, yet most important banking area in existence. Because the identities of the customers of offshore banks in Panama are protected, no one can use this banking information to identify individual clients or their holdings. Even wire transfers are identified only with transaction numbers, meaning that the identity of the receiving or sending party in Panama is unknown.

Panama business services play an important role in the total asset protection plan. Panama requires that local attorneys be used to establish Panama foundations and Panama corporations. The country also has rock solid attorney - client privilege laws that prohibit the disclosure of client information for almost every reason. Although other countries have laws protecting this privilege, Panama's business services has seen this principle violated in other countries and has determined that it will not happen within their borders. Panama attorneys are experts in creating the necessary business structure and they are not allowed to divulge your information to anyone.

Panama has become not only a great location to live but a great asset protection location as well. Since many other governments have weakened the ability of their citizens to protect their assets, Panama has implemented foundations, corporations and offshore banking to form a strong protection for the assets of their citizens and foreign investors. Protecting your assets is not only a wise business move; it is your only method of preventing a financial catastrophe before it happens. Using a Panama foundation, Panama corporation, offshore banking and a Panama business services provide you with the very best asset protection.