Panama Private Interest Foundation is a type of private foundation formed under the laws of Panama. It is based upon the Liechtenstein "Stiftung" (a family foundation). The foundation is an entity that allows you to control wealth without owning it.

Features
Foundations are mainly used for philanthropic or estate planning purposes. In terms of the legal structure, a foundation lies somewhere between an offshore company and an offshore trust.
Functionally a private foundation differs from an offshore company in that a foundation cannot engage directly in commercial business activity, although it can hold assets through bank accounts and may own investments such as property, stocks, bonds, immaterial rights as patents, trademarks and computer software. It may also act as a holding structure and own businesses and distribute wealth as instructed by the wishes/by laws who remains a private document, not registered with any public register.
The foundation has a founder, protector, beneficiary and council members. There are no owners to a Panama Foundation. A "Letter of Wishes" may be written by the protector to specify how the foundation's assets should be handled following the protector's death. It is an excellent tool to avoid death taxes and to control inheritance.

Benefits 
Protects assets - Since the foundation is not linked to the ownership of an individual or company, it is not subject to being confiscated as a result of lawsuits from governments, individuals or corporations. In other words, the assets of the foundation can not be claimed or confiscated if the founder, council members, protector or beneficiaries have unpaid debt.
According to Panama law, the assets of a foundation are non-freezeable.
Foundations can be used to help family members financially according to the protectors instructions, and forced heirship rules are specifically excluded. It can be used to collect royalties. Tax free for income derived outside of Panama.