For decades, asset protection lawyers have helped clients from all over the world with their asset protection needs using different structures, including establishing offshore asset trusts in the Cook Islands. Wealth protection attorneys with firms like Ora Partners Limited or Fidelity have formed long-standing relationships with Cook Islands trust companies.
Why Set Up a Cook Islands Trust
A Cook Islands trust can protect a wide array of assets, both tangible (real estate, vehicles, art, etc.) and intangible (securities, patents, cryptocurrency, etc.). A Cook Islands trust can also protect assets in the event of divorce, thanks to the Cook Islands International Relationship Property Trust Act. This act helps spouses protect offshore trust assets for their beneficiaries rather than allowing the assets to be divided by the divorce courts.
Cook Islands trusts can also provide multigenerational wealth protection as there is no perpetuity period for a Cook Islands trust. The assets contained within the trust are also not subject to intestacy laws or probate.
How to Set Up a Cook Islands Trust
The first and most important step in setting up a Cook Islands trust is finding an attorney with a solid background in asset protection. Setting up a trust is not something you can do yourself or with the help of a website or a customer service agent.
The next step is to carefully select a trustee. The trustee must be a reputable professional trust company, and they must be located in the Cook Islands. Make sure that the trustees you choose are licensed and bonded by the FSC.
The next step is to identify all parties involved in the trust. The people involved in setting up the trust are the following:
- Settlor(s): This is the individual setting up the trust.
- Trustee: This is the person or company who holds the assets and manages the trust.
- Trust Protector: This person is often appointed by the settlor. While they do not need to be involved in the day-to-day administration of the trust, they are given the authority to replace the trustee if necessary and, sometimes, with the help and guidance of the trustee, amend the trust.
- Beneficiary: These are the people who benefit from the trust. The settlor can also be the beneficiary.
Next, it’s time to get all the necessary documents together. Some basic documentation required for a Cook Islands trust include a passport or driver’s license, a banking reference letter, evidence of funds, a trust deed, proof of residency, and a Sworn Affidavit of Solvency or solvency certificate. An optional component, but one that’s nice to have, is a letter expressing your wishes regarding how you want the trust to be handled.