Unique Strengths of a Cook Islands Trust
The Cook Islands Trust stands apart due to its immunity to foreign judgments. Creditors must start a case from ground zero in the Cook Islands, an environment notoriously challenging for creditors. Further, plaintiffs face the high threshold of proving ‘beyond a reasonable doubt,’ pay for legal fees upfront, and have only a two-year limit for old claims.
The Flip Side
Despite their strong protection, Cook Islands Trusts come with higher setup and maintenance costs and more paperwork. Settlors also have to transfer control to a foreign trustee. Additionally, despite being legal, offshore entities sometimes carry a stigma of impropriety.