Asset Protection – Frequently Asked Questions

What is asset protection?

Asset protection is the process of legally safeguarding wealth from potential risks such as lawsuits, creditors, political instability, or family disputes. The goal is not to hide assets but to structure them in a way that makes it difficult or unattractive for claims to succeed.

In the Cook Islands, asset protection typically involves the use of trusts, LLCs, and foundations, supported by some of the world’s strongest protective legislation.

Why is asset protection important?

Without proper planning, assets can be vulnerable to:

• Lawsuits and professional liability.
• Business risks, including insolvency or contractual disputes.
• Political or economic instability in a client’s home country.
• Family challenges such as divorce or inheritance disputes.
• Creditors pursuing aggressive recovery actions.

Asset protection strategies create a legal framework that preserves wealth for future generations.

How does asset protection work in practice?

Asset protection involves transferring ownership of assets into legal structures that separate them from an individual’s personal estate. For example:

• A Cook Islands Trust holds assets for beneficiaries under the control of a licensed trustee.
• A Cook Islands LLC manages investments or business holdings.
• A Cook Islands Foundation can serve as a long-term wealth management vehicle with its own legal personality.

These structures benefit from Cook Islands legislation, which does not recognize foreign court judgments and places strict limits on creditor claims.

Is asset protection legal?

Yes — when done correctly. Asset protection is a lawful form of estate and financial planning. It is not about hiding assets or evading taxes. Instead, it ensures assets are held in legally recognized structures that reduce exposure to external risks.
It is essential to establish planning before problems arise. Transferring assets to avoid existing creditors can be challenged, even in the Cook Islands.

When should I start planning for asset protection?
The best time to plan is before risks materialize. Courts generally look unfavorably on last-minute transfers made after litigation has already begun. Establishing structures early ensures they are respected and legally sound.

Who benefits from asset protection?

Asset protection is used by:

• Business owners and entrepreneurs exposed to litigation.
• Professionals such as doctors, lawyers, and executives.
• High-net-worth families preserving wealth across generations.
• Investors seeking political or economic stability.
• Individuals with international lifestyles and cross-border assets.

What assets can be protected?

Virtually any asset can be safeguarded through proper structuring, including:

• Bank accounts and investment portfolios.
• Real estate and private companies.
• Intellectual property and royalties.
• Insurance policies and annuities.
• Family heirlooms and generational wealth.

Why is the Cook Islands considered the Gold Standard for Asset Protection?

The Cook Islands pioneered modern asset protection trust legislation in 1984 and has built a reputation as the most established and respected jurisdiction for safeguarding wealth. Its legal framework is specifically designed to offer robust protection while maintaining international credibility.

Key advantages include:

• Non-recognition of foreign judgments — Creditors cannot simply enforce overseas judgments. They must bring a fresh claim through the Cook Islands’ courts, under Cook Islands law.
• High burden of proof — Any claimant must prove fraud beyond a reasonable doubt, one of the most demanding legal standards.
• Short statutes of limitation — Fraudulent transfer claims are tightly limited to one year.
• Confidentiality — There is no public register of trusts or foundations, ensuring privacy for settlors, beneficiaries, and assets.
• Judicial independence and stability — The Cook Islands offers a well-respected judiciary and a mature legal system, giving clients confidence in the integrity of the jurisdiction.

Beyond the legal framework, the Cook Islands has more than four decades of case law, regulatory experience, and trustee expertise, making it the clear leader and trusted choice for serious international clients seeking long-term asset protection.

Is asset protection the same as tax planning?

No. Asset protection and tax planning are separate, though complimentary. The Cook Islands does not impose income, capital gains, or inheritance taxes on international structures, but:

• Clients remain subject to tax laws in their home jurisdictions.
• Reporting obligations (e.g., FATCA, CRS) may apply.

Independent legal and tax advice is strongly recommended.

How do I get started with asset protection?

The process usually involves:

1. Assessing your personal and financial risk profile.
2. Deciding which assets should be protected.
3. Choosing the right structure (Trust, LLC, Foundation, or a combination).
4. Working with a licensed trustee company to establish and administer the structure.

Why Choose Ora Partners for Asset Protection Planning?

As a licensed trustee company in the Cook Islands, Ora Partners provides international families and entrepreneurs with tailored structures that stand the test of time. Our role goes beyond administration — we act as long-term fiduciary partners, balancing protection with practical solutions.

Our advantages include:

• Deep structural expertise — Decades of experience in the design and administration of trusts, LLCs, and foundations, ensuring that each structure is legally sound, tax-efficient, and aligned with the client’s goals.
• Proven asset protection experience — We have successfully guided clients through challenges and attacks on asset protection structures, both in the Cook Islands and abroad, giving us practical insight into what works under real-world pressure.
• Regulatory confidence — As a fully licensed trustee, we operate under one of the world’s most respected regulatory regimes, giving clients assurance that their structures are compliant and sustainable.
• Discretion and professionalism — Confidentiality is central to our fiduciary role. We safeguard sensitive information with integrity, ensuring peace of mind for clients and beneficiaries alike.
• Established presence — With over 25 years of continuous operation in the Cook Islands, we offer unmatched stability and continuity for cross-border families seeking trusted, long-term solutions.

At Ora Partners, we bring together technical excellence, regulatory assurance, and a commitment to confidentiality — providing clients with asset protection strategies that are resilient, discreet, and future-proof.

Contact Ora Partners today to learn how we can help protect your wealth for the future.