The trust as a legal instrument was introduced in Panama in the year 1925. Since then, the legislation regulating its constitution and operation has undergone several changes, culminating with our current Trust Law enacted in 1984. Because of the long tradition of the trust, and our familiarity with it, Morgan & Morgan has acquired the necessary expertise to efficiently advise its clients on how to better use the advantages and opportunities offered by our trust legislation to their benefit.
Panamanian legislation on the constitution and administration of trusts allows for the creation of a wide variety of trust structures, including: Trusts with testamentary provisions, Administrative Trusts, Investment Trusts, Trusts for the Protection of Minors or Disabled, Guarantee Trusts, Commercial Trusts, Trust based on Securitization, and several others.
In order to provide our clients assistance for establishing and administrating the aforementioned structures, our Group has created a special Fiduciary Services Unit, MMG Fiduciary & Trust Corp. This unit is also dedicated to assisting clients with the creation of other legal structures tailored to meet each client’s specific needs, drafting contracts, providing asset management services, and offering any other type of fiduciary arrangements required by the client.
We expect the popularity of the trust to continue to increase throughout the world, and with it the demand for the Panamanian Trust. Panamanian Companies, Private Foundations and Trusts are ideal tools for Estate Planning and Asset Protection, which are also services provided by MMG Fiduciary & Trust Corp.
Morgan & Morgan is also in a position to provide trust instruments from other jurisdictions in which it has established offices. This complements our ability to provide a full range of fiduciary services to our local and international clients.
In June 1995, the Legislative Assembly of Panama enacted Law No. 25, whereby the Private Foundations were created and regulated. In response to the availability of this new flexible and efficient instrument, Morgan & Morgan organized a section specialized in structuring and managing Private Foundations. This team is headed by partners of our firm who played a key role in drafting and enacting the Law, which guarantees our complete and thorough understanding of this instrument.
The Panamanian Private Foundation is an instrument inspired on the Family Foundation of the Principality of Liechtenstein. With the availability of this instrument, Panama became the first country in the American continent to adopt this legislation, ensuring its continued leadership as an international provider of offshore and fiduciary services.