Actually, owning something is a liability! You are being charged taxes on what you own! By owning something of value, you expose yourself to the risk of litigation from greedy money sharks, who want a chunk of your wealth! And your creditors love you for what you own, not for who you are...

The essence is that, with a Private Interest Foundation , you can officially "disappear" from the surface of financial life! You certainly don't need to be inactive - but when you conduct all your financial transactions in the role of an agent for your Foundation, private as well as business, you get to enjoy all the benefits of the wealth you create - and hardly any of the disadvantages!

A Private Interest Foundation is like a screen that can take from you and pass on to you the positive effects of your transactions, leaving all the negative ones out. This way, all the negative stuff, like liability, debt, lawsuits, threats, etc. stays with you - and it is totally separated from your assets, your ability to do business, and your enjoyment of the wealth you created.

The simplest way of understanding it probably is by seeing your Private Interest Foundation as your "Rich Aunt", who loves you dearly and wants to do anything for you he possible can - as long as you take responsibility for his wealth!

• Asset protection - regardless the creditor or the claim!
  You have probably at least heard of a businessman who was into quite risky business management - and always got away with things, because "everything he owned was in his wife's name" - and they had a prenuptial agreement separating their fortunes? Such an arrangement is very effective - to the degree the marriage can hold it. But you can achieve the same effect through a Private Interest Foundation - and a Foundation is neither unfaithful nor asks for a divorce... EVER!
  
  
• Securing complete confidentiality around your financial affairs.
  How you can obtain an offshore credit card or debit card account to cover your daily purchasing needs in complete privacy. You can use those cards as you would use any other credit or debit card - the difference is that the transactions are not reported to any government!
  
  
• Ensuring that your Estate is passed on exactly as you want it.
  You face all kinds of restrictions on what you can make happen to your Estate when you die. There are laws restricting whom you can appoint as your heir(s), without the inheritance costing a fortune in taxes. Your Loved Ones face the hassle of Probate and all the lawyer fees to sort out all the accounting tasks. With your assets offshore, you eliminate all those problems!
  
  A strong additional benefit from a Foundation is the fact that you can easily appoint Beneficiaries of all kinds, and sharing all kinds of ratios of the Foundations asset portfolio between them. You can mix family and charities with general purposes you define. There is no limit to how complicated a will you can create for yourself, through the Foundation! The major advantage of a Foundation, compared to a Trust, is that the Beneficiaries are not on public record, but remain a completely private matter that is known only to Council.
  
  
• Full protection of investments and trading profits from taxation.
  This includes trading securities, bonds, stock, and venture capital investments. Doing such money transaction from the base of a Private Interest Foundation allows you to totally avoid capital gains taxation and income taxation on interest and dividends. In the role of an agent for a foreign Foundation, you are not liable for any taxes on its behalf, provided you do it right.
  
  
• Your ultimate liability protection - better than any insurance you can ever buy!
  With your valuable assets all secured offshore, you can afford to declare bankruptcy any time - and it will only cost you the filing fee... This does not mean you can escape responsibility for your actions, but it certainly means that your family will not have to suffer because of an error of omission from your side that was only human.
  
  
• Protection of your business income from taxation.
  If you are running a profitable business (or plan to do so), you can eliminate all liability for income tax for it by controlling it through an International Business Corporation owned by a Private Interest Foundation. With such a set-up, you will even reduce your total amount of paper work at tax return time!
  
  This is an area where a Foundation is less flexible than a Trust; a Trust can engage itself in certain kinds of business - the Foundation cannot engage in any form of day-to-day business. For the Foundation, you must have an IBC to conduct the Foundation's business matters.
  
  
• Protection of your business assets from any future creditor - your ultimate risk management program for your business.
  With a Private Interest Foundation combined with an International Business Corporation, you can achieve the ultimate risk management protection for your business, making it possible for you to let an even prosperous business die - without losing anything!
  
  (Comment: This might sound weird, but reality is that if you run a prosperous business, you are also prone to have it threatened; the most effective way you can discourage such predatory threats is by being able (and willing) to close the business, clean the slate for liability, and start another business. With your assets vested in the business, you cannot do that, so you are doomed to take whatever legal fights come your way! With your assets secured, however, you can pick the fights you find worth your time and ignore the others...)