Trusts are an ideal vehicle with which to preserve and protect assets against risks arising from the ownership of those assets.
There are significant advantages to either investing through or simply holding assets in an asset protection trust. Choosing the right vehicle that works for you is important. By using a Cook Islands International Trust, your assets are not only protected from frivolous lawsuits but you also enjoy privacy and personal security.
An effective trust structure allows for a wide range of financial planning objectives including:
- Estate duty and tax minimization
- Preservation of wealth
- Flexibility and confidentiality
In short, the unique features of Cook Islands’ trusts are:
- Foreign judgments are unenforceable against a Cook Islands International Trust if that judgment is inconsistent with Cook Islands law.
- Specific provisions ensure a trust is not defeated by rules relating to heirship or spendthrift beneficiaries in the jurisdiction of the settlor.
- A settlor of a trust is able to retain control over the trust and its property if desired.
- Foreign bankruptcy rules are specifically excluded.
A specific limitation period of two years exists for the bringing of proceedings by creditors seeking to access trust assets. The statute provides statutory definitions of what does not constitute a fraudulent transfer. If a transfer of an asset to a trust occurs more than two years after the date a creditor’s action took place, it is deemed not fraudulent.