A lawsuit can occur unexpectedly – whether it’s from an unhappy client, an injured guest, a business partner, or a creditor. Asset protection helps ensure that even if you are faced with a lawsuit, your personal property like your house, savings, or investments are protected.
The Cook Islands is renowned for its robust asset protection trust (APT) framework. Most asset protection professionals agree that a Cook Islands Asset Protection Trust offers the highest level of protection. It can protect a wide range of assets including cash, financial securities, limited liability companies (LLCs), cryptocurrency, real estate, and more.
The Cook Islands has a defendant-friendly legal system, making it incredibly difficult for creditors or legal claimants to access your assets. Foreign judgments, including those from U.S. courts, are not recognized, which means your assets cannot be seized by foreign courts and a plaintiff would need to bring their case to the Cook Islands to try and reach any assets held by the trust.
If you’re facing a legal claim or financial dispute, your Cook Islands Trust acts as a shield, ensuring your wealth is out of creditors’ reach. This allows you to preserve and protect your assets during financially challenging times.
For decades, U.S. citizens and others have used Cook Islands Asset Protection Trusts to help safeguard their wealth. While the Cook Islands remains the preferred jurisdiction for asset protection attorneys, it is reassuring to see them continue to improve upon their legislation.
The Cook Islands has recently undertaken significant reforms to enhance its legal infrastructure, transparency, and global competitiveness in the offshore trust sector. These developments reinforce the Cook Islands’ commitment to maintaining its status as the premier destination for asset protection.
In response to evolving global standards and to help address potential gaps, the Cook Islands enacted the Financial Transactions Reporting Amendment Bill in December 2024. This legislation aims to bolster financial transparency and better align the jurisdiction with recommendations from the Global Forum on Transparency and the Exchange of Information for Tax Purposes.
Some of the key provisions to the Amendment include enhanced security measures for sensitive financial data and stricter due diligence requirements for personnel handling tax information.
Thanks to its strategic legislative reforms and continued international engagement, the Cook Islands has reaffirmed its commitment to providing a secure and transparent environment for asset protection planning. These developments not only enhance the jurisdiction’s legal infrastructure but also solidify its reputation as a leader in the global offshore trust industry.
