- ENGLISH
- ESPAÑOL
Cook Islands offshore trusts
Operating as an off-shore financial centre since 1981, the Cook Islands offers a safe, stable and secure environment in which to do business. It is a parliamentary democracy based on the Westminster model, with a British legal system founded on judicial independence. The Cook Islands has had self-government since 1965 but remains a state in âfree associationâ with New Zealand.
A well educated, English-speaking workforce and a soundly regulated financial system enable the Cook Islands off-shore sector to compete strongly with other off-shore jurisdictions. There is an efficient Registrarâs Office which can provide trust and company registrations within one working day. In addition there is a well-developed financial infrastructure to service the off-shore industry.
Why a Cook Islands Trust?
Over the past 15 years the Cook Islands has become the foremost jurisdiction for establishing off-shore trusts and is now recognized as the world leader in formation of asset protections trust, safeguarding the assets of high net worth clients. Cook Islands law contains a number of unique features that make the operation of an asset protection trust administratively friendly and highly protective. In addition, it deals with a number of current issues in trust law giving the Cook Islands considerable advantage over other off-shore jurisdictions in general off-shore trust work.
One of the practical and flexible solutions given by Cook Islands trust law is the ability to include provisions allowing a trust to retain shares in underlying companies, without concern as to the financial benefits of holding such shares. Similarly a trust may include provision negating the trusteeâs responsibility to monitor and intervene in the affairs of an underlying company. These features allow trust to hold family businesses, or other investment companies, that clients may want to retain for generations to come. Or which are intende4d to hold risky or speculative investments. The Trustee is not required to become involved in the decision making or management of the companies, which role can be left to the family members and trusted management.
Also of interest to many clients not used to dealing with an off-shore trustee company, is the ability to utilize a private trustee company in the Cook Islands. In this structure the client, and/or advisors, are the shareholders and directors of a Cook Islands company which acts as the trustee of their Cook Islands Trust. The client gains the comfort of being his won trustee, the flexibility of management of the trust, and yet still retains the benefits of Cook Islands trust law.
What are the unique features of Cook Islandsâ trusts?
- 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 settler 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 creditorâs action took place, it is not fraudulent.
What products can the Cook Islands Offer?
The Cook Islands also offers International Companies, Limited Liability Companies, International Partnerships, off-shore banks and off-shore insurers in its off-shore sector. International Companies are exempt from all tax in the Cook Islands. Other attractive features include:
- Only one shareholder is required
- No minimum share capital requirement
- Accounts do not have to be filed
- Meetings do not have to be held in the Cook Islands
- No requirement for Cook Islands resident director
- Redomiciliation to or from the Cook Islands is allowed
Since June 2008 the Cook Islands has offered Limited Liability Companies, which are seen as an increasingly popular from of corporate vehicle because of simplicity when compare to the old form of accompany structure. A Cook Islands Limited Liability Company offers unique advantages not found in any jurisdiction.