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    Cook Islands Trust

    Offshore Services Since 1996

Cook Islands Trust

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A Cook Islands Trust is the worlds leading international asset protection trust located in the most secure offshore jurisdiction in the world. A trust is formed under the Cook Islands International Trusts Act and has the strongest proven asset protection case law history. An offshore trust is for those individuals who would like to preserve their assets in times of uncertainty, from creditors, lawsuits, and any and all unknown future political, economic, or legal threats.

A Cook Island Trust is the most effective means to secure security and protect your assets from lawsuits, creditors for estate planning or divorcee protection. Although the offshore financial sector has received a lot of scrutiny from foreign governments seeking to restrict the use of offshore services, the Cook Islands has been kept out of the limelight.

The long arm of foreign governments can not reach Cook Island trusts, nor do the Cook Islands uphold foreign government court orders demanding account information or asset seizure. A Cook Island Trust, explains Jennifer A. Davis, chief executive of the Cook Islands Financial Services Development Authority 

"provide[s] a layer of insurance for something that cannot be insured—the unforeseeable." 

Table of Contents:

Cook Islands Trust Law

The International Trusts Act 1984 and the amendment 1989, the Cook Islands were the first jurisdiction to include asset protection features in its trust legislation, a precedent that was soon to be copied by several other highly secure jurisdictions. The amendment was designed to protect clients from frivolous lawsuits at a time when no other jurisdictions in the world could. This piece of legislation remains the foremost asset protection amendment in the world devised to protect the assets of the client under all manner of circumstances.

The Financial Supervisory Commission in the Cook Islands states that there are nearly 3,000 trusts, all of which offer full anonymity as well security from creditors and legal suits. The multi-layered foreign trust structure gives both full protection and anonymity for both the beneficiaries and the settlor. Both offshore finance experts and we at Offshore Protection agree that the Cook Islands have the strongest asset protection trusts in the world, a claim that no other jurisdiction can make.

Cook Islands Trust & Nevis LLC Combination

We recommend that a Cook Islands Offshore Trust be used in a combination package with a Cook Islands LLC or a Nevis LLC for maximum protection, flexibility, and to further diversify your trust’s structure. While the LLC is held by the trust, the trustee (being an entity or person, preferably located in the Cook Islands) holds the title.

The manager of the LLC—you—are able to have legal control over the LLC and the authority over any bank accounts that might be affiliated with it, in such a way that you still have control of your assets, with provisions made for times of duress, which state that a trustee manages and protects the trust's assets. The Trustee then removes the individual as a manager from the LLC during times of legal duress whereby a successor in a separate country is used which gives a second layer of protection (in comparison with a domestic trust) instead of having them all located and controlled in a single country.

Go here for more information about the: Cook Islands Trust and a Nevis LLC

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Cook Islands Trust & Asset Protection

A Cook Islands Trust is the strongest asset protection vehicle currently in the market today. Using such a trust together with an LLC provides you with a bulletproof asset protection plan that makes it virtually impossible to break. By using an LLC with a Trust gives you maximum leverage, as the LLC owns the assets. A Trustee is legally obliged to follow the trust deed and can not hand over assets to a foreign court. There are significant geographical and procedural barriers that prevent creditors from accessing Cook Islands Trusts. Even the U.S. Federal Trade Commission has tried twice to gain access to trust and has failed - twice.

The difference between a domestic asset protection trust and an offshore asset protection trust like the Cook Islands is that domestic trusts are held in the same country where you reside and must abide by local court rulings and judgments. Offshore trusts on the other hand are bound by their own laws, giving your assets a second barrier of protection.

In countries such as Nevis and Cook Islands where there are strong asset protection laws protecting assets held within the country, foreign judgments are non-enforceable and a local trustee legally can not hand over assets to foreign courts without breaking local Cook Island laws making them liable to heavy penalties and fines an excess of 100,000USD. In order for a creditor to pursue his/her claim against the trust, they must file a local claim in a local Cook Island court. This is why foreign trusts offer superior protection for both personal and business assets.

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Advantages of a Trust

A Cook Islands Trust has many benefits which include: no taxes, confidentiality, asset protection and flexibility making it the most advantageous asset protection structure out there. Other advantages include:

  • Asset are kept out of the reach of creditors
  • Court orders in foreign countries do not have jurisdiction nor can they have control over foreign citizens (your trustee)
  • Foreign governments have no authority over an international trust
  • In order to reach assets a creditor is forced to use legal means within the Cook Islands where there are significant barriers to prevent frivolous claims
  • The Cook Islands are 'defendant friendly'- protecting clients who reside in potentially “creditor friendly” legal jurisdictions
  • Assets do not have to be physically located in the Cooks Islands
  • All business transactions can be conducted electronically
  • The strongest and most tested foundation for an international asset protection strategy
  • Many barriers to litigation created by the International Trust Act
  • Custodian trustees permitted
  • Trust deeds are not publicly registered
  • Allows a variety of trust arrangements such as dynasty, purpose, and charitable trusts
  • Many various forms of investment opportunities
  • There is a two-year statute of limitation if a creditor is to bring any action against the trust
  • Flexible trust structure
  • Foreign bankruptcy is excluded
  • No requirements to file the trust deed with the Registrar

Cook Islands Fraudulent Conveyance

This is an important amendment that was enshrined within the International Trust Act. The legislation outlines a solvency test, which determines fraudulent conveyance, requiring a strict timeline and details for the creditor to pursue their claim. Similarly, the standard of proof required for fraudulent transfer is that of a criminal act, and must be 'beyond a reasonable doubt'.

Statute of Limitations

Any claim of fraudulent transfer against the trust must be done within the statute of limitations which is a two-year period. This means that if the transfer happened longer than two years then the statute of limitations is passed and no claims can be brought forward to court. This is a significant barrier to entry and ensures that only the most determined creditor will continue to pursue the case. Usually what happens is that all claims are negotiated outside of the courts.

What Type of Assets can a Trust Hold?

A Cook Islands Trust can be used to protect a variety of liquid and tangible assets, including but not limited to:

  • Investment portfolios
  • Intellectual property
  • Life assurance policies
  • Any type of financial asset

High-risk individuals that are in high-risk professions such as lawyers, doctors, physicians, business vendors, retirement, and investment portfolios, particularly benefit from an Asset Protection Trust.

Individuals planning on creating an estate or family plan benefit from the fact that in the Cook Islands trusts exist in perpetuity rather than for a finite period of time, such as 20 years, as is the case for many jurisdictions that limit the life of the trust. This allows you to own and hand down the trust and its assets to future generations.

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Best Uses of a Trust

People that establish a Cook Islands trust can use it for many purposes including holding bank accounts, brokerage accounts, investments, intellectual property, physical property, and pretty much any type of physical or nonphysical assets including company shares and real estate. It can also be used:

  • Protecting assets in times of economic, political or economic uncertainty
  • Wealth preservation
  • Estate planning
  • Transfer of wealth through families
  • Diversifying assets
  • Minimizing or eliminating estate taxes
  • Lawsuit protection
  • Holding stock options
  • Retirement planning

Key Corporate Features

Cook Islands Trust Corporate Details
Type of Entity International Trust
Type of Law English Common Law
Governed by International Trusts Act 1984
(Amended 1989)
Our time to establish a new company 3 days
Corporate Taxation No
Access to Double Taxation Treaties No
Share capital or equivalent  
Standard currency New Zealand Dollar (NZD)
Permitted currencies Any
Minimum None
Parties to the Trust  
Minimum number One
Publicly accessible records No
Corporate shareholder allowed No
Location of meetings Anywhere
Recurring Government Costs  
Minimum Annual Tax / License Fee  USD$100.00
Annual Return Filing Fee Covered by trustee company

How Much Does a Cook Island Trust Cost?

The total cost for a Cook Islands trust can range between USD $10,000 - 15,000. The fees vary accordingly from USD$1,000-5000 for registration and administration as the Cook Islands Trust requires the services of a trust company located in the Cook Islands. However, many times you will find trust providers or law firms quote upwards of 20,000 - 25,000 USD which is likely that they receive a substantial commission. We have been creating trusts in the Cook Islands for 25 years and as a result have prices that are very competitive, mainly because of our long-standing relationships.

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How to Set Up a Cook Islands Trust?

In order to set up a trust in the Cook Islands you must include:

  • A copy of passport certified
  • Evidence of funds to transfer into the trust
  • Proof of physical address
  • Banking reference letter

Other Trust Documents include:

  • Trust deed copy
  • A certificate of solvency
  • Deed of indemnity
  • The licensed trustee company due diligence requirements

The trust company requires that:

  • The settlor prove that a trust is not being registered for any criminal or fraudulent purposes
  • The company will also provide a registered office and provides the necessary annual re-registration services

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How to Structure a Trust?

There are four different parties to a Cook Islands International Trust.

  1. Settlor—The person who establishes and whose assets are put into a trust
  2. Trustee—Are those that hold the title to the assets and administer the trust
  3. Protector—This is a person who oversees the operation and appoints trustees
  4. Beneficiary—A person or persons who benefit from the trust, which can include any person that the settlor wishes

1. Settlor

The Settlor would be you, and you would place your assets in the hands of a trustee who manages the trust.

2. Trustee

Your assets, which are managed by the trustee, must reside in the Cook Islands and therefore are not subject to the legal jurisdiction in which you live. Trustees are regulated by the Financial Supervisory Commission in Cook Island and are legally bound to protect the assets of the settlor for the beneficiaries.

The trustees hold the legal title to all the assets within the trust, though they cannot benefit from the trust. The point of a trustee is such that under times of legal duress when a court requires that you hand over your assets, the trustee then becomes your fail-safe. The trustee, who resides in the Cook Islands, is not subject to a court mandate and can simply refuse. Legally, the trustee can only distribute the funds for the benefit of the beneficiaries.

Multiple Trustees

A settlor can establish a Cook Islands Trust with several trustees used for the management of the assets. Though a single trustee may be used so that the settlor may keep a close watch over the trust and for easy management, which can later change if needed.

A domestic trustee may be appointed, however, in the event of a lawsuit or any legal claim against the settlor’s assets the flexibility of the structure allows the trustee to change hands to that of a sole trustee located in the Cook Islands, therefore giving the assets the due protection.

3. Protector

A trust protector, appointed by you, is the one who gives oversight; though is optional, adds another dimension of stability and security for the trust, as the person is someone you likely trust, whether a family member or attorney, as they are given the power to appoint trustees and veto any actions that the trustee might make on behalf of the settlor (you).

4. Beneficiary

The beneficiaries would likely be you, and anyone in your family (or anyone) and they are the ones who gain to benefit from the trust.

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Taxation in the Cook Islands

There are no taxes imposed on a Cook Islands Trust, this includes, but is not limited to:

  • No gift tax
  • No estate tax
  • No excise tax
  • No income tax
  • No capital gains tax
  • No local taxes of any kind

However, a foreign asset protection trust with an offshore bank account does not free you from any tax responsibilities. You are still obliged to pay taxes in the country where you reside. Any income generated from the trust is liable to be taxed in your home country (depending on the tax laws in the country where you live), and it is the client's duty to report any such financial information in your home country.


A Cook Island trust has a name for itself as being the world's strongest asset protection trust in existence. There are several alternatives to a Cook Island Trust, most notably a Belize Trust and Nevis Trust which can be found at a fraction of the price, however, none can really compare in terms of asset protection mechanisms and its barriers in pursuance of creditor claims. Get in touch to learn more about what a Cook Islands Trust can do for you.


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