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Cook Island Trust

cook island trust
A Cook Islands Trust provides the most powerful asset protection available baring none. The Cook Islands can boast that it has more asset protection trust case law then all other offshore jurisdictions combined. Cook Island Trust protection is not a matter of theory. In every case in which it has been put to the test, the Cook Islands Trust has provided total protection for it's assets.
cook island trust

The Cook Island laws and courts are not creditor friendly. The Cook Islands stands among a narrowing band of sovereign nations that believe in the sanctity of wealth and deplore the modern trend of frivolous and/or punitive lawsuits and politicians calling for the redistribution of wealth cloaked in "entitlements". The Cook Islands, and Trusts drafted under the Cook Island International Trusts Act of 1984, as amended place serious obstacles for those who attempt to bring any litigation against your Cook Island Trust. The Cook Act contains a number of provisions which are relevant to Cooks desirability as the situs for a trust specifically designed for enhanced asset protection.


How the Cook Islands Trust Works


If your opponent prevails in a U.S. Court, the court judgment will require that you turn money over to your opponent. You obeying the court's demand, inform your Cook Island Trustee that your local judge has ordered you to bring back the funds, Normally Trustee's are required to follow your instructions, however, your Trust states that the Trustee is prevented from letting the funds out of the Cook Island Trust when you, the beneficiary is acting under "duress". So, the Trustee, who resides outside of the U.S. Court's reach, refuses to comply. You are not in trouble ("contempt") because you obeyed the judge's orders and asked the trustee to bring back the funds. You're in an "impossibility to act," position which is certainly valid for a legal defense.

In cases where the "Duress Clause" was activated by a Client indicating to the trustee that he was under duress, the U.S. court has taken punitive action, including incarceration for "contempt of Court." To avoid this I can set up a trust procedure that must be followed whenever you wish to request an action. You must conclude with the following:"I swear under penalty of perjury that the above is requested of you from my free will and I am not under duress." A judge cannot force you to perjure yourself.

Additional Cook Island Laws Designed for Enhanced Asset Protection. are as follows:
  • Non-Recognition of U.S. Judgments. Section 13D of the Cook Island International Trusts Act of 1984, as amended (hereinafter "Cook Act") does not recognize judgments that originate in the United States. All litigation must be initiated in the Cook Islands if a creditor wants to reach the Cook Island Trust's assets.
  • Standard of Proof. To win his case your opponent under Section 13B of the Cook Act must "prove... beyond reasonable doubt "that your "principal intent [was] to defraud that creditor". This standard must be proven using the U.S. criminal standard, the highest of standards requiring proof beyond a reasonable doubt.
    • Your opponent must prove that your "principal" (not secondary) intent for creating the Cook Island Trust was to defraud that particular creditor, and the proof must be beyond the shadow of a reasonable doubt, the absolute highest of legal hurdle.
    • Whereas it is best to place funds into your Cook Island Trust before creditor challenges, the Cook Island Trust has consistently displayed its asset protection effectiveness after the fact, especially when the very creative "Jones Clause" is used.
  • Time Within Which Suit Must Be Brought. Both the Cook Islands Trust and the transfer to the trust is presumed not be fraudulent if (1) two years has passed since the creditor's cause of action accrued (Section 13B(8) of the Cook Act) or (2) in the event that the trust was established prior to the expiration of the 2 year limitation, then the creditor's action was commenced in the Cook Islands more than one year after of the establishment of the trust or the transfer to the trust. This creates a one year statute of limitations on transfers. As the statute begins running on "the date that the omission shall have first occurred" which gave rise to the judgment itself, in almost every case, by the time the judgment is obtained the statute of limitations in the Cook Islands will have run.
  • When the lawsuit is completed in the U.S., the Cook Island Trust statute will have expired. The lawsuit, therefore, could no longer be pursued against the Cook Island Trust after that time. As a result, there are exceedingly few trust lawsuits pursued in the Cook Islands.
  • Bankruptcy. The Cook Act provides that a Cook Island Trust even if "voluntary and without valuable consideration" or made "for the benefit of the settlor" shall not be void or voidable by the settlor's bankruptcy or insolvency. Bankruptcy will not invalidate a Cook Island Trust.The Cook Act further provides that Cook laws govern matters relating to the validity of the trust and exclude foreign law if such law could negatively impact either the existence of a Cook Island Trust or its ability to hold property or otherwise transact business.

  • Welcoming Flight Provisions. Cook Act Section 13G specifically contemplates and sets forth the law for preparing for this type of oncoming emergency. The Flight Clause is a tactic of last resort -- fleeing from a jurisdiction in which the trust fears penetration to a jurisdiction the Trustee views as a safe haven for your money. The Cook Act validates a change if, "in the case of a change to the law of the Cook Islands, such change is recognized by the law of the trust previously in effect; [and] in the case of a change from the law of the Cook Islands, the new governing law would recognize the validity of the trust and the respective interests of the beneficiaries."

Prior to "duress", you (who set the Cook Island Trust up and are one of it's beneficiaries) are in full control. You manage the daily financial affairs. This is accomplished by forming an onshore or offshore limited liability company (LLC). The LLC is owned by 100% by your Cook Island Trust. You are the Manager of the LLC. You control the LLC. You are the signer on all LLC bank accounts. You are the Protector of the Cook Island Trust and can fire the Trustee if he does not comply with your non-binding suggestions. If a major threat arises, the Trustee replaces you as LLC Manager and appoints you as the as LLC Investment Advisor and all liquid LLC assets are moved offshore.


When the matter is resolved, all actions previously taken can be reversed. Till the matter is resolved, the trustee can provide for your needs.

There is proven case law history showing the trust in the Cook Islands has shown itself strong repeatedly. The weakness inherent in local trusts is that it is under the nose of the local judge. Thus, with the unparalleled asset protection strength demonstrated in the Cook Islands, the trust described here offers the world's strongest asset protection.


We would be pleased to work with you to establish your Cook Islands Trusts structure

if you have need for strong asset protection.

With our Free Consultation you have nothing to lose.

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