Question 1

Why are Cook Islands trusts considered the best for asset protection?

Accepted Answer

Cook Islands trusts have withstood multiple high-profile challenges in US courts. They feature a 2-year statute of limitations on fraudulent transfer claims, a beyond-reasonable-doubt standard of proof for creditors, and Cook Islands courts do not recognize or enforce foreign judgments.

Question 2

How much does a Cook Islands trust cost?

Accepted Answer

Setup costs range from USD 5,000 to 10,000 for an international trust, with annual maintenance fees. The cost is higher than some jurisdictions but reflects the gold-standard level of protection provided.

Question 3

Are Cook Islands trusts taxed?

Accepted Answer

No. Cook Islands international trusts pay 0% tax on income from outside the Cook Islands. There is no capital gains tax, no withholding tax on distributions to foreign beneficiaries, and no estate or inheritance tax.

Question 4

Can foreign courts enforce judgments against a Cook Islands trust?

Accepted Answer

No. Cook Islands courts do not recognize or enforce foreign judgments against international trusts. Creditors must re-litigate their claims in the Cook Islands under Cook Islands law, which has a 2-year statute of limitations.

Question 5

What is a Cook Islands foundation?

Accepted Answer

A Cook Islands foundation is a hybrid structure combining features of both trusts and companies. It has its own legal personality, is ideal for succession planning and charitable purposes, and does not require beneficiaries at the time of establishment.

Cook Islands

Trust & Corporate Structures

International Trust

International Company

Foundation

Tax Overview

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