A Cook Islands trust is a trust established in the Cook Islands to safeguard assets from lawsuits and creditors. Many financial experts consider the Cook Islands to be the best country to set up an offshore trust. It is recommended that you seek the guidance of a reputable financial advisor or wealth solutions firm, such as Ora Partners Limited, J.P Morgan Chase, Wells Fargo, or Morgan Stanley, to navigate the intricacies of establishing offshore trusts.

How Does a Cook Islands Trust Work?

The Cook Islands is a popular offshore trust jurisdiction because of the provisions of the Cook Islands International Trusts Amendment Act of 1989. The Cook Islands has trust laws that allow U.S. citizens to protect their assets. The act affords maximum asset protection while protecting privacy and maintaining flexibility for U.S. citizens. It requires the trustee to be in the Cook Islands. The Cook Islands government regulates Cook Islands trust companies. Most Cook Islands trust companies are experienced and thoroughly competent. Cook Islands law imposes strict qualifications on all Cook Islands trust companies.

Can a Cook Islands Trust Protect Assets?

Your assets are protected from U.S. judgments because the trust and trustee are beyond the legal reach of U.S. civil courts. U.S. courts can’t force an offshore trustee to take any action regarding the trust’s assets. In addition, creditors have no legal means to interfere with administering an offshore trust’s assets.

To garnish assets in the Cook Islands, a U.S. creditor must re-litigate their lawsuit in the Cook Islands and obtain a foreign judgment. It is difficult and expensive.

Cook Islands Trust Advantages

The Cook Islands gives settlors numerous asset protection advantages.

• A transfer into a Cook Islands trust is legally protected if made more than two years after a cause of action has accrued.

• If the assets are already transferred into the trust, a lawsuit must be filed in the Cook Islands within one year from the time the cause of action accrues.

• Creditors must file fraudulent transfer actions in the Cook Islands because claims cannot be brought in the U.S. This is very expensive and rarely happens.

• A fraudulent transfer lawsuit must prove beyond a reasonable doubt that there was clear intent to defraud and that the transfer left the settlor insolvent.

Are the Cook Islands Trusts Worth It?

A Cook Islands trust can be worthwhile for those seeking maximum asset protection. It safeguards assets from creditors, divorce proceedings, and other legal judgments.

Moreover, the Cook Islands courts do not recognize foreign judgments. It adds a significant layer of protection for trust assets. For people who face potential civil liability, such as individuals in high-risk fields or sectors and individuals with high net worth who want to shield their assets from unforeseen threats, a Cook Islands trust can be a powerful tool.

A Cook Islands Trust can safeguard a wide variety of assets, both tangible and intangible. A Cook Islands Trust can also protect your assets in the event of divorce, thanks to the Cook Islands International Relationship Property Trust Act.