The Cook Islands trust legislation, the International Trusts Act, has been specifically crafted to provide for robust protection of family wealth placed inside a Cook Islands International Trust (“CIIT”).

Foreign judgments obtained by creditors are not enforcable against a CIIT in the Cook Islands.  The only remedy for a creditor of a settlor seeking to attack assets placed in a trust is to argue that the creditor had made a transfer of assets to the trust with intent to defraud the particular creditor seeking to attack the CIIT.  To successfully argue that there has been a fraudulent transfer of assets to a CIIT, a creditor must prove beyond reasonable doubt that the transfer was made by the settlor with intent to defraud him as a creditor.  The creditor must also meet strict time limitation periods in relation to bringing his action firstly against the settlor of the trust in the settlor's home jurisdiction and secondly against the CIIT in the Cook Islands.

The creditor must commence proceedings against the settlor in the settlor's home jurisdiction within 12 months of transfer of the assets to the CIIT and the creditor must also commence proceedings against the CIIT in the Cook Islands within 2 years of the date of the transfer of assets to the CIIT.  If the creditor fails to meet either time limit, he is statutorily barred from prosecuting proceedings against the CIIT.

A Trust Deed or Deed of Settlement, which is signed by the settlor and the trustee and which sets out the terms of the trust.  A Client Data Form, whereby the settlor of the trust provides certain information to the trustee.  An Affidavit of Solvency whereby the settlor confirms various matters including that he/she will be solvent after transfer of assets to the trust and that there is no litigation pending against him/her.  In respect of each settlor of the trust the foillowing is also required.  Notarised copies of photo identification (drivers licence or passport).  Notarised copies of a utility bill, bank statement, credit card statement or the like evidencing the settlors address and a bank reference letter or a letter of introduction from a lawyer or accountant.

Once the trustee is in receipt of all the documentation referred to above, registration of the trust can take place within 24 hours.

The only documents that are lodged with the Registrar's office are documents prepared by the trustee stating the name of the trust, the name of the trustee and the date on which the trust was established.  The trust deed, any memorandum of wishes and the due diligence documentation are kept on the trustee's file and are NOT lodged with the Registrar.

Yes - our Cook Islands office can provide an appropriate form of trust deed and due diligence materials upon application.  Applications for these materials should be directed to the Cook Islands office.

No - because of the complexity of US law in relation to tax and estate planning issues, Asiaciti Trust requires that settlors residing in the United States retain United States counsel to assist and advise in the establishment of a CIIT.  In this regard we are happy to work with the settlor's usual legal counsel or provide a referral to several United States attorneys who specialise in this area.