The foundation is created with a separate patrimony from the assets transferred to it. Therefore, a panama private foundation cannot be attached, seized or subject to any action or precautionary judicial measure, except for liabilities incurred, or for damages caused on the execution of the purposes or goals of the foundation itself, and for the legitimate rights of their beneficiaries.
In “no” case the assets in the foundation will respond for personal obligations of the founder or beneficiaries. The article 15 of Law 25 of 1995 establishes that third parties will have the right to challenge the contributions or transfers of assets in favor of a foundation, or creditors of the founder, when the transfer constitutes an act of fraud of creditors. The rights and actions of said creditors expire after three (3) years, counted from the contribution or transfer of assets into the foundation.
It is important to mention that also the article 14 of the law, indicates legal provisions in hereditary matters in the domicile of the founder or beneficiaries, which will not be opposable against the foundation, nor affect its validity nor prevent the achievement of its objectives, according to the foundation charter or its regulations.
