Cook Islands Trusts – Frequently Asked Questions

What is a Cook Islands Trust?

A Cook Islands Trust is a legal structure established under the Cook Islands International Trusts Act 1984. It allows an individual (the settlor) to transfer assets to an independent trustee who manages them for the benefit of chosen beneficiaries.

These trusts are globally recognized as one of the strongest forms of asset protection trusts, offering robust legal safeguards that prevent foreign judgments from being enforced in the Cook Islands.

Why are Cook Islands Trusts known for strong asset protection?

Cook Islands legislation, first enacted in 1984 and amended in 1989, created the world’s first dedicated asset protection trust framework. The key benefits include:

Non-recognition of foreign judgments – creditors must pursue claims in the Cook Islands courts.
Strict burden of proof – claimants must prove fraud beyond a reasonable doubt, one of the most rigorous standards in law.
Short limitation periods – fraudulent transfer claims must be brought within a strict one-year window.
Discretionary trust powers – trustees can manage distributions flexibly, making it difficult for creditors to predict outcomes.

Together, these features make the Cook Islands the leading jurisdiction for individuals and families seeking reliable international trust protection.

Who typically establishes a Cook Islands Trust?

A Cook Islands Trust can accommodate a wide range of assets. Common examples include:

Bank accounts and investment portfolios – cash deposits, brokerage accounts, and managed funds.
Business ownership interests – shares in private companies, partnership interests, and other equity positions.
Intellectual property rights – patents, trademarks, copyrights, and royalties.
Life insurance policies – ownership of policies and their proceeds.
Digital and alternative assets – cryptocurrencies, tokens, securities, and title to commodities such as precious metals.
Real estate – residential, commercial, or investment properties (directly or via an underlying entity).

Many settlors choose to use underlying entities, such as LLCs, to simplify administration and add another layer of protection.

Are Cook Islands Trusts legal?

Yes. When properly structured, a Cook Islands Trust is a fully legal estate planning and asset protection vehicle. It is critical, however, that trusts are not established to defeat existing creditors. Professional advice should always be sought in the settlor’s home jurisdiction to ensure compliance with local tax and reporting obligations.

How private is a Cook Islands Trust?

Cook Islands Trusts are highly confidential. Unlike some jurisdictions, the Cook Islands does not maintain a public trust registry. Trust deeds and related documents are not publicly accessible. Disclosure is only required under limited circumstances, such as legal proceedings within the Cook Islands courts.

How long can a Cook Islands Trust last?

Modern Cook Islands legislation permits trusts to exist indefinitely (perpetual trusts), unless the trust deed specifies a shorter period. This makes them suitable for long-term family wealth preservation and intergenerational planning.

What taxes apply to Cook Islands Trusts?

The Cook Islands does not impose income tax, capital gains tax, inheritance tax, or estate tax on international trusts. However:

Settlors and beneficiaries remain subject to the tax laws of their own jurisdictions.
Reporting obligations such as CRS (Common Reporting Standard) and FATCA may apply.

It is essential to obtain independent tax advice to ensure compliance.

Can a Cook Islands Trust be amended after it is established?

Yes. Many Cook Islands Trusts are drafted with flexibility. Amendments are possible depending on the terms of the trust deed, often requiring agreement from the trustee and, in some cases, the Protector.

How do Cook Islands Trusts compare to other offshore trusts?

Compared to other jurisdictions, Cook Islands Trusts offer:

Stronger protection from foreign court judgments.
Shorter statutes of limitation for creditor claims.
A proven track record, with decades of case law supporting their enforceability.
A global reputation as the premier jurisdiction for asset protection trusts.

Why Choose Ora Partners as Your Licensed Cook Islands Trustee?

As a fully licensed trustee company in the Cook Islands, Ora Partners brings you more than just structure — we offer a relationship-first, discretionary, and deeply professional fiduciary experience tailored for cross-border clients.

Here’s what sets us apart:

Holistic legal and compliance oversight — We don’t just administer trusts; our team combines legal, tax, compliance, and trust-service expertise to navigate complex jurisdictions and evolving regulation.
Tailored trust administration — Every client’s circumstances, assets, and goals are different. We build bespoke trustee services that align with your legacy, risk tolerance, and succession plan.
True international alignment — With decades of cross-border experience, we coordinate with your legal, tax, and investment advisors globally so that your structure works seamlessly across jurisdictions.
Discretion, integrity & strategic vision — At Ora, protecting wealth means protecting stories, relationships and values. You can expect the highest standards of confidentiality, ethical stewardship and strategic foresight.
Future-proof for emerging asset classes — We’re adept at integrating digital assets, IP, and modern structures into traditional trust frameworks — giving you regulatory confidence without leaving you behind.
Local roots, global ambition — Being based in the Cook Islands gives us jurisdictional strength; our global network gives you access to seamless implementation and protection wherever your interests lie.