Estate Planning for Gay Couples in Panama: The Post Nobody Else Writes

We are going to spend the first part of this post being direct about something that most Panama relocation guides mention in a single vague sentence and then move on from. That sentence is usually some version of: “gay couples should consult an attorney about estate planning.” That is true. It is also completely insufficient. So let us say what actually happens if you do not act — and then explain exactly what you need to do, in what order, with what documents.

Brian and Kent are a gay couple. This is our specific situation. We are writing this primarily for gay couples, because the legal exposure we face in Panama is categorically different from what a married straight couple faces — and we have not found another site that explains the difference at the level of detail the situation requires. We also cover estate planning for all expats, because wills, powers of attorney, and medical directives matter for everyone. But the gay couple section is the reason this post exists.

Finance & Money in Panama Series

Fourteen articles covering everything you need to know about managing your money before, during, and after your move to Panama.

1. The Real Numbers: Our 13-Part Guide to Finances, Money, and Budgeting in Panama
2. Taxes in Panama: What the Territorial System Actually Means for American Expats
3. Banking in Panama: The Truth Behind the Social Media Fear
4. What Does It Actually Cost to Live in Panama City?
5. What Buying a Home in Panama Actually Costs You
6. Financing a Home in Panama
7. Home & Auto Insurance in Panama
8. Healthcare Costs in Panama
9. Travel Within Panama: Getting Around
10. ATMs, Wire Transfers, Wise, and Getting Your Income Here Reliably
11. Estate Planning for Gay Couples in Panama You are here
12. Can a Foundation Let My Partner Inherit Our Panama Property Without Probate
13. Your Retirement Accounts Are Not Worth What You Think — RMDs, Taxes & Medicare
14. Building Your Reserve in Panama: The Financial Cushion That Makes a Retirement Budget Actually Work

The Legal Reality: What Panama Does Not Recognize

Panama does not recognize same-sex marriage. It does not recognize same-sex civil unions or domestic partnerships. It does not recognize the U.S. marriage certificate of a same-sex couple as conveying any legal status in Panama. On 16 February 2023, Panama’s Supreme Court ruled — by a vote of six justices — that the phrase “between a man and a woman” in Article 26 of the family code is not unconstitutional, upholding a 2015 law that explicitly prohibits marriage between people of the same sex. The court’s own language: the prohibition is “objectively and reasonably justified in the general interest of giving precedence to those unions with the potential of establishing families, giving continuity to the human species, and, therefore, to society.” Panama continues to face criticism from international human rights bodies over the ruling, including from the Inter-American Commission on Human Rights, but as of 2026 the legal position in Panama has not changed.

What this means in concrete terms: under Panamanian law, you and your partner are legal strangers to each other. Your relationship — however long, however committed, however formally recognized in your home country — does not exist in the eyes of Panamanian inheritance law, medical law, or property law.

What Panamanian Intestacy Law Actually Says

When someone dies in Panama without a valid will, Panamanian intestacy law — codified in the Civil Code — dictates who inherits their Panama-based assets. The hierarchy is rigid and based entirely on legally recognized family relationships:

The “legally recognized spouse” referenced throughout Panamanian intestacy law means a spouse recognized under Panamanian law — which currently means an opposite-sex spouse in a legal Panamanian marriage, or a foreign opposite-sex marriage recognized under Panamanian private international law. A U.S. same-sex marriage does not meet this standard.

For a gay couple who owns a condo in Panama — even one who has been together for 30 years and is legally married in the United States — if one partner dies without a Panamanian will, the surviving partner has no legal claim to that condo. The deceased partner’s parents, if living, may inherit it. The deceased partner’s adult children from a previous relationship, if any, may inherit it. A sibling the deceased partner had not spoken to in a decade may inherit it. The surviving partner, without a will in place, has nothing.

The Additional Risks Beyond Property

Inheritance is the most obvious risk, but it is not the only one. Human Rights Watch has documented the legal disadvantages same-sex couples face in Panama — disadvantages that go beyond property and affect medical decisions, financial access, and basic dignity in a crisis.

Medical Decision-Making

If one partner is incapacitated — unconscious after an accident, in surgery, suffering a medical crisis — Panamanian hospitals will default to recognized family members for decision-making authority. Without a properly executed Panamanian medical power of attorney naming the partner as the designated healthcare decision-maker, the hospital is legally within its rights to defer to parents or siblings. The partner who knows the person best, who has been their companion for decades, who knows their medical history and their wishes, may be excluded from decisions that determine whether they live or die.

This is not hostility from Panamanian medical staff — in practice, Panama City’s private hospitals treat gay couples professionally and without obvious discrimination. It is a legal default that applies in the absence of documentation. The documentation is the fix.

Financial and Bank Account Access

Joint bank accounts in Panama require both account holders to be named on the account and to have individually executed account agreements. If one partner dies and the account is in the deceased’s name only, the surviving partner — without a will or legal authority — cannot access it. The funds are frozen pending probate. A joint account setup from the start, combined with proper estate documents, prevents this.

Property and the Right to Remain in Your Home

If a property is titled solely in one partner’s name and that partner dies without a will, the surviving partner has no legal right to remain in the property while the estate is resolved. The heirs who inherit under intestacy law — whoever they are — can demand the property, and the surviving partner has no standing to resist. This scenario is not hypothetical. It has happened to gay couples in Panama and in other countries with similar legal frameworks.

Gay Couples vs. Married Straight Couples — The Legal Gap

The contrast is stark. A married straight couple in Panama gets significant legal protections automatically — protections written into Panamanian law — that require no additional documents. A gay couple in Panama gets none of those protections automatically. Every single one must be created deliberately, with specific legal instruments, executed before they are needed.

What You Need — The Complete Legal Document Stack

Here is every document a gay couple should have in place before establishing significant assets or long-term residence in Panama. These are not optional enhancements. They are the legal infrastructure that replaces the protections that Panamanian marriage law provides to straight couples by default.

Foreign Wills in Panama — Important Limitations

Some expats arrive in Panama with the assumption that their existing U.S. will covers their Panama assets. This assumption is dangerous.

Panama recognizes foreign wills — but only under specific conditions. The foreign will must comply with the laws of the country where it was executed. It must be translated into Spanish by a certified translator. It must be legalized by apostille under the Hague Convention (the U.S. is a Hague member) and authenticated by the Ministry of Foreign Affairs of Panama. This process takes time, costs money, and is not guaranteed to be recognized smoothly by Panamanian courts.

More practically: a U.S. will drafted to distribute U.S. assets according to U.S. law may not cleanly address Panama-specific legal requirements — including the specific language needed for the Public Registry to transfer property title. A Panamanian will drafted by a Panamanian attorney is faster to probate, clearer in its Panama-specific legal instructions, and eliminates the authentication uncertainty entirely.

Probate in Panama — Why Avoiding It Matters

Even with a valid will, Panama’s probate process (sucesión) requires a court filing and legal representation, and Panamanian legal guides consistently describe it as time-consuming and, in many cases, running to several months at minimum — longer if any heir contests the will’s validity or a competing intestate claim is raised. One procedural detail worth knowing: intestate succession is filed in Municipal Court if the total estate valuation is B/.5,000 or less, and in District Court otherwise — and the required valuation covers not just property recorded in the Public Registry but other assets such as artwork or shares in private companies.

We have seen figures describing total probate cost and duration in more specific terms — a one-to-two-year timeline, a cost running up to 10% of estate value — repeated across expat guides, but we could not trace those specific figures to an authoritative source and are not presenting them as confirmed facts here. What is consistently confirmed: cost scales with estate size and complexity, requires attorney representation throughout, and during the process assets are effectively frozen — your partner cannot sell the property or move funds from certain accounts while working through the Panamanian court system.

The strategies that reduce or eliminate probate exposure — joint titling, beneficiary designations, and the Private Interest Foundation — exist precisely because the probate process is onerous enough that most experienced Panama attorneys recommend structuring around it wherever possible.

Estate Planning for All Expats — Straight and Gay

Everything above applies specifically to gay couples. What follows applies to all expats, regardless of relationship structure — and the needs are real even for legally married straight couples.

Panama Has No Inheritance or Estate Tax

This is worth stating clearly because it is a genuine financial advantage. Panama does not impose estate tax or inheritance tax on assets transferred at death. Property, bank accounts, and other assets passing from a deceased person to heirs in Panama are not subject to Panamanian inheritance tax. This makes Panama’s estate planning landscape meaningfully simpler than many countries — the tax question that drives much of U.S. estate planning simply does not arise for Panama-based assets.

Your U.S. estate tax situation is unaffected by living in Panama — the U.S. taxes estates of American citizens on worldwide assets above the federal exemption threshold (a figure that adjusts periodically — confirm the current amount rather than relying on any number published here). For most expats, the federal estate tax is not a practical concern. State estate taxes depend on your state of domicile.

Panamanian Probate Is Slow for Everyone

Even for a legally married straight couple with a perfectly executed Panamanian will, probate takes time and costs money. The strategies that minimize probate exposure — joint titling, beneficiary designations, and the PIF — benefit all expats, not just gay couples. The motivation is different (gay couples must act to prevent disinheritance; straight couples act to avoid delay and cost), but the tools are the same.

The Cross-Border Estate Problem

If you own assets in both the U.S. and Panama, your estate exists in two legal systems simultaneously. U.S. probate rules govern your U.S. assets. Panamanian succession rules govern your Panama assets. Your U.S. executor and your Panamanian estate administrator must coordinate — ideally with attorneys in both jurisdictions who have communicated with each other. This is why international estate planning attorneys who work across both systems are worth the investment, and why the two-will strategy is essential rather than optional for anyone with assets in both countries.

The Complete Action Checklist

Finding the Right Attorney

Not every Panamanian attorney has meaningful experience with gay couples’ estate planning needs. The legal field in Panama, like the broader culture, has not uniformly engaged with same-sex couples as a distinct client population with specific legal exposure. When hiring an attorney for this work, ask directly:

“Have you drafted estate planning documents for same-sex couples?” The answer tells you what you need to know. An attorney who answers yes with specifics is the right choice. An attorney who hedges, expresses discomfort, or pivots to something else should not be drafting documents that your partner’s financial security depends on.

Morgan & Morgan — the law firm we have been working with for Brian’s Pensionado visa — is Panama’s largest law firm and handles international estate planning. They are sophisticated enough to work with gay couples appropriately. Other major international law firms with Panama offices (Baker McKenzie, Arias, Fábrega & Fábrega) have the size and international perspective to handle cross-border gay couple estate matters with competence.

Our Situation — Where Brian and Kent Are

We are going through this in real time. Brian’s permanent residency was approved in July 2026. Kent intends to pursue the Qualified Investor Visa. We have not yet purchased property in Panama, and we have not yet finalized our estate planning documents. What we have done is understand, clearly, that before we close on any Panama property, we need both Panamanian wills, both durable POAs, both medical directives, and a plan for joint titling or a foundation structure executed and filed — the foundation route, in particular, because it can protect Brian’s inheritance interest without depending on Panama recognizing our relationship, and it appears compatible with Kent’s visa requirements rather than in conflict with them, based on what we’ve verified about the governing decree elsewhere in this series. We know what the gap looks like if we do not act. We are not going to wait until after closing to fix it.

We will update this post as we go through the actual process — attorney chosen, documents drafted, questions answered. The real-time documentation of what this actually involves, from the attorney meetings to the notary appointments to the costs, is exactly the kind of information that does not exist in any other expat guide we have found. We intend to fix that.

The Bottom Line

Panama’s legal system is genuinely favorable to expats in many ways — freehold property ownership, low property taxes, no estate or inheritance tax, a well-developed private interest foundation framework. For gay couples, however, the legal system provides exactly none of the automatic protections that Panamanian marriage law extends to opposite-sex married couples. The gap is significant, the consequences of ignoring it are serious, and the fix is completely available.

Execute the documents. Both of you. Before it matters.