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Comprehensive Guide to Establishing a Cook Islands Trust: Enhance Your Asset Protection in 2024


The Cook Islands, located in the South Pacific, are renowned for their breathtaking scenery and rich cultural heritage. Beyond being a popular tourist destination, they have emerged as a leading jurisdiction for establishing offshore trusts due to their robust legal framework, strong asset protection laws, and confidentiality. This detailed guide will explore the numerous benefits, the step-by-step process, and key considerations for setting up a Cook Islands Trust, helping you secure your assets and achieve peace of mind. 

Cook Islands Trust and LLC

Why Consider a Cook Islands Trust?

A Cook Islands Trust offers unparalleled asset protection, shielding your wealth from creditors, lawsuits, and other legal threats. The strong legal framework and privacy laws make the Cook Islands one of the most secure jurisdictions globally for setting up an offshore trust. Here are the key reasons why you should consider a Cook Islands Trust:

1. Unmatched Asset Protection

The Cook Islands do not recognize foreign judgments, which means that assets held in a Cook Islands Trust are effectively shielded from creditors and legal claims. This unique feature provides a significant barrier against lawsuits and other legal actions, ensuring that your wealth remains protected.

2. Confidentiality and Privacy

One of the key advantages of a Cook Islands Trust is the high level of confidentiality it offers. Trust deeds do not need to be publicly registered, ensuring privacy for both the settlor and the beneficiaries. This confidentiality extends to the details of the trust arrangement, providing an additional layer of security.

3. Flexible Trust Structure

Cook Islands Trusts can be tailored to meet individual needs, making them ideal for estate planning, wealth management, and succession planning. The flexible nature of these trusts allows for the inclusion of various assets, ranging from real estate to intellectual property.

4. Favorable Legal Environment

The Cook Islands is known for its defendant-friendly legal system, which places the burden of proof on the creditor. This makes it challenging for creditors to successfully challenge a Cook Islands Trust, adding another layer of protection for your assets.

5. Tax Advantages

The Cook Islands do not impose taxes on international trusts, providing a tax-neutral environment. This means that trusts established in the Cook Islands are not subject to local taxes such as income tax, capital gains tax, or estate tax, making it an attractive option for high-net-worth individuals. This does not relieve you of your tax obligations back home. For example, US citizens are taxed on worldwide income, as are residents of most countries. So, it simply means there is not an additional tax in the Cook Islands.

Legal Framework and Legislation

The Cook Islands International Trusts Act of 1984, along with subsequent amendments, forms the legal backbone for offshore trusts in the Cook Islands. This legislation includes comprehensive provisions for asset protection, privacy, and trustee responsibilities, ensuring a secure and regulated environment for trust operations. The Act has been updated multiple times to align with international standards and enhance the protection offered to trust settlors and beneficiaries.

Rarotonga, Cook Islands

Step-by-Step Guide to Setting Up a Cook Islands Trust

1. Seek Professional Guidance

The first step in establishing a Cook Islands Trust is to consult with a seasoned asset protection attorney or a specialized firm like Asset Protection Planners. (Call +1-954-388-9830 or complete a contact form on this page.) Professional advice is crucial to navigate the complexities of setting up an offshore trust and to ensure compliance with legal requirements. Asset Protection Planners has established more Cook Islands trusts than any firm worldwide. There are attorneys and consultants on staff who can guide you through the process.

2. Identify Key Trust Parties

  • Settlor: The individual establishing the trust.
  • Trustee: A licensed trust company in the Cook Islands responsible for managing the trust.
  • Beneficiaries: Individuals or entities who will benefit from the trust.
  • Protector (optional): An entity or person with oversight powers over the trustee.

3. Draft the Trust Deed

Work closely with you and/or your attorney to draft a comprehensive trust deed. This legal document outlines the terms, conditions, and parties involved in the trust. It serves as the foundation of your Cook Islands Trust, detailing the roles and responsibilities of the settlor, trustee, protector, and beneficiaries.

4. Complete Necessary Documentation

To establish a Cook Islands Trust, you will need to prepare and submit several key documents, including:

  • Certified copy of the settlor’s passport or driver’s license
  • Proof of address (utility bill or bank statement)
  • Evidence of funds (bank reference letter
  • Solvency affidavit or solvency certificate

These documents are essential for the trust company to perform due diligence and ensure compliance with international regulations.

5. Transfer Assets to the Trust

The final step in setting up your Cook Islands Trust is to transfer your assets into the trust. This can include a wide range of assets such as cash, securities, real estate, intellectual property, and more. Once the assets are transferred, they are legally owned by the trust, providing robust protection against legal claims and creditors.

We typically establish an international limited liability company (LLC) that you use to open the bank and investments accounts. We place the membership of the LLC inside of your trust. As LLC manager, this gives you a tool inside of the trust that you control. Then when legal duress strikes, our law firm/trustee company can step in to protect you as needed.


Maintaining Your Cook Islands Trust

Ongoing management of your Cook Islands Trust involves several key activities, including:

  • Annual Fees: Paying the required annual maintenance fees to keep the trust active and compliant.
  • Compliance: Ensuring that the trust complies with all relevant legal and regulatory requirements.
  • Audits and Reviews: Conducting regular audits and reviews to verify that the trust is being managed according to its terms and in compliance with international standards.
  • Updates: Making necessary updates to the trust deed and other documents to reflect any changes in your financial situation or estate planning goals.

Who Should Consider a Cook Islands Trust?

A Cook Islands Trust is ideal for a wide range of individuals and entities, including:

  • High-Net-Worth Individuals: Those with significant assets who want to protect their wealth from legal threats.
  • Business Owners: Entrepreneurs looking to safeguard their business assets from potential lawsuits and creditors.
  • Professionals in High-Risk Industries: Doctors, lawyers, and other professionals who face a high risk of litigation.
  • Estate Planners: Individuals seeking to ensure a smooth transfer of wealth to future generations while minimizing estate taxes.

Who Should Not Consider a Cook Islands Trust?

A Cook Islands Trust is not for everybody. Here are examples of those who should not consider setting up such a trust.

  • Tax Evaders: Tax evasion is illegal. Thus, we are legally forbidden from accepting a client who we know is intending to use the trust for tax evasion purposes.
  • Criminal Defendants: Those who are currently defendants in criminal cases are not good candidates. That is because Cook Islands regulators forbid setting up trusts for this purpose.
  • Government Civil Defendants: For those who are currently in lawsuits with a government agency, such as the SEC, FDA, FTC regulators will not allow trusts for such defendants.
  • Insufficient Asset Value: For those with less than $250,000 in assets, there are other options that may make more sense economically.

Costs and Considerations

Setting up and maintaining a Cook Islands Trust involves several costs, including:

  • Setup Costs: $18,000 – $25,000
  • Annual Maintenance Fees: $5,000 – $10,000
  • Additional Entities: The LLC that goes inside of the trust as well as real estate asset protection structures are additional.
  • Additional Costs: Reporting compliance, tax preparation, and trustee fees

While these costs may seem significant to some people, the benefits of robust asset protection and privacy advantages make a Cook Islands Trust a worthwhile investment for those seeking to safeguard their wealth.

Frequently Asked Questions

1. Are Cook Islands Trusts Legal? Yes, Cook Islands Trusts are legal and operate within a comprehensive legal framework designed to protect assets. The Cook Islands International Trusts Act provides a solid foundation for the establishment and management of offshore trusts, ensuring compliance with international standards.

2. Do You Have Many Clients Who Have Set Up Cook Islands Trusts? Yes. We have set up more Cook Islands trusts than any firm worldwide. Our management has been in the profession since 1991.

3. How Long Does It Take to Set Up a Cook Islands Trust? Typically, it takes 1-3 months to set up a Cook Islands Trust, depending on the complexity of the trust and the efficiency of documentation and asset transfers. Working with an experienced attorney can help expedite the process.

4. Can U.S. Creditors Access Assets in a Cook Islands Trust? No, U.S. creditors cannot directly access assets held in a Cook Islands Trust due to the jurisdiction’s refusal to recognize foreign judgments. This legal protection is one of the key advantages of establishing a trust in the Cook Islands.

5. What Types of Assets Can Be Placed in a Cook Islands Trust? A Cook Islands Trust can hold a wide range of assets, including cash, securities, real estate, intellectual property, and more. The flexibility of the trust structure allows for the inclusion of various asset classes, providing comprehensive protection.

6. What Are the Reporting Requirements for a Cook Islands Trust? While the Cook Islands do not impose taxes on offshore trusts, it is important to comply with reporting requirements in your home country. U.S. citizens, for example, must report their interest in foreign trusts to the IRS and comply with FATCA and other international reporting standards.


Setting up a Cook Islands Trust is a strategic move to protect your wealth and secure your financial future. With its strong legal framework, confidentiality, and robust asset protection features, a Cook Islands Trust stands out as one of the best options for international asset protection.

For personalized assistance and to ensure a seamless setup process, consult with experts at Asset Protection Planners. Our team of experienced professionals can guide you through every step of the process, ensuring that your trust is established correctly and in compliance with all legal requirements.

Secure your assets today and enjoy peace of mind knowing your wealth is protected. Contact Asset Protection Planners to start the process of setting up your Cook Islands Trust and take the first step towards safeguarding your financial future.

For more information or to start setting up your Cook Islands Trust, contact us at Asset Protection Planners. Let us help you navigate the complexities of offshore asset protection and ensure your financial security. Our team is ready to assist you in creating a customized trust that meets your unique needs and provides the highest level of protection for your assets.


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