Overview
This summary outlines the key features, benefits, and steps involved in establishing a Cook Islands trust for robust asset protection, as explained by attorney Blake Harris.
What is a Cook Islands Trust?
- A Cook Islands trust offers high-level asset protection by placing assets under Cook Islands jurisdiction.
- It shields cash, real estate, investments, cryptocurrency, and other assets from legal threats in your home country.
- The Cook Islands legal system strongly favors trust owners and defendants in legal disputes.
Benefits of a Cook Islands Trust
- Protects against seizures, malpractice claims, divorce, bankruptcy, and other legal actions.
- U.S. courts cannot reach assets held in a Cook Islands trust.
- Provides peace of mind as assets can be accessed unless under court duress.
- Useful for business owners and professionals in high-risk fields.
- Enables estate planning, wealth preservation, tax reduction, and asset diversification.
Reasons for Choosing the Cook Islands
- Statute of limitations protects assets from creditors after a certain period.
- The jurisdiction does not recognize foreign court orders, including those from the U.S.
- The system is user-friendly: assets do not need to be physically located in the Cook Islands.
- Offshore banking options are available in multiple jurisdictions, such as Switzerland.
Timing and Effectiveness
- Asset protection is most effective when established before any legal threats arise.
- Creating a trust during calm periods avoids negative legal presumptions.
- Trusts established well in advance (ideally 1–2 years) demonstrate no intent to defraud creditors.
Legal Strengths and Barriers for Plaintiffs
- U.S. court orders are not enforceable in the Cook Islands.
- Legal action in the Cook Islands is costly and complex for plaintiffs.
- The legal system strongly favors defendants, making plaintiff victories rare.
Protection Scope
- Can safeguard a wide range of assets, including intellectual property, portfolios, real estate, crypto, and life insurance.
- Most effective for assets deposited in foreign (non-U.S.) accounts.
Setup Process
- Engage an experienced law firm (e.g., Blake Harris Law) to draft and prepare trust documents.
- Obtain approval from a Cook Islands trust company (takes about two weeks).
- Transfer selected assets into the trust.
- Open an offshore bank account, typically within 30 days.
Decisions
- Choose Cook Islands jurisdiction for asset protection
- Establish trust well before legal threats arise
Action Items
- TBD – Client: Contact Blake Harris Law to initiate the trust setup process.
- TBD – Client: Sign and return trust documents.
- Approx. 2 weeks – Trust Company: Approve submitted trust documents.
- TBD – Client: Transfer designated assets into the established trust.
- Approx. 30 days – Client: Open an offshore or Swiss bank account under the trust.