Cook Islands Trust for asset protection, Does it Work??

[Sols]

Why would someone choose South Dakota for a trust over Wyoming, Nevada or Delaware?

Different jurisdictions and different types of trusts for different purposes. Here are some comparisons:

https://sterlingtrustees.com/wp-content/uploads/2021/10/ST21066-Wyoming-White-Paper2021_r_2.pdf

https://sterlingtrustees.com/wp-content/uploads/2021/05/ST21-021-SD-v.-DE-White-Paper-2021-REV10-Final.pdf

https://www.northerntrust.com/documents/white-papers/wealth-management/specialized-trusts-side-by-side-comparison-states.pdf

https://www.duanemorris.com/articles/static/borowsky_taxmgmtjrnl_0712.pdf

As I've said, asset protection isn't an off-the-shelf product. You customize it to fit your situation, using the best available tools and methods to achieve your desired level of protection for your type of assets.

 

[DarkRevoMan]

What assets people keep on Cook Trust.? I imagine mostly US, EU, Canada assets (real estate, shares etc.) also yachts, private jets..
Do rich people keep Cook Islands assets? I doubt that
I said the same about Liechtenstein discretionary foundation. You can do the same in Liechtenstein. Assets cannot be frozen easily on that foundation. You can keep funds on it in Liechtenstein.
But if you keep other assets in foreign countries there are always a risk.

This makes no sense. Real estate and shares in onshore jurisdictions in an offshore trust? I think of an offshore trust as a 'start over fund'. If I lose everything else I own, I have enough in a secure offshore trust to live indefinitely. These funds are invested for now, and just left alone. Hopefully I will never need to access them and they continue to grow.

Onshore real estate and traditional assets have a separate structure.

LI has it's own problems (hopefully they make some changes soon). You might be able to get around this depending on how you set up the foundation council.

Liechtenstein: The mysterious tax haven that's losing the trust of the super-rich

The tiny principality of Liechtenstein attracts the super-rich for its secrecy and security but, as a bitter legal case shows, there's a price: all legal right are held by the trustees

www.independent.co.uk

 

[lacomaco]

What is the rationale for choosing between a Cook Islands trust and a Nevis trust?

For Nevis trusts it is easier to sue and collect if you are from the US. Cook Islands trust legislation requires suing in the Cook Islands which costs a lot of money. Contingency creditors are not happy to pay for this cost

 

[JohnnyDoe]

For Nevis trusts it is easier to sue and collect if you are from the US.

Can you elaborate?

Cook Islands trust legislation requires suing in the Cook Islands which costs a lot of money.

Same in Nevis, foreign judgments are not recognized.

 

[Jbb1]

Same in Nevis, foreign judgments are not recognized.

Do you suggest a bank account for a Nevis Trust?

 

[Onassis]

@JohnnyDoe there's some info here https://webcache.googleusercontent....l.aspx?g=85f1a61b-6c34-42c1-b30c-8f773be74762

But it seems like a trust is not always the ideal solution: The Belize LLC: Better Than an Asset Protection Trust | Lighthouse Trust

 

[JohnnyDoe]

Do you suggest a bank account for a Nevis Trust?

I prefer bank accounts to be opened by entities owned by the trust, not by the trust itself.

@JohnnyDoe there's some info here https://webcache.googleusercontent....l.aspx?g=85f1a61b-6c34-42c1-b30c-8f773be74762

Based on this article, a Nevis trust seems superior.

But it seems like a trust is not always the ideal solution: The Belize LLC: Better Than an Asset Protection Trust | Lighthouse Trust

So a Belize LLC owned by a Nevis trust seems a good option.

 

[Onassis]

So a Belize LLC owned by a Nevis trust seems a good option.

A Nevis trust is probably better than a Cook Islands one, yes. The Cook Islands also recognize the Mareva injunction, unlike Nevis or even Belize.

In all cases I think one should first take a look at their legal and tax residency before trying to pick one entity over the other. What's the point of setting up a Nevis trust if trusts aren't even recognized in your country of residence?

 

[JohnnyDoe]

The Nevis multi form foundation is the ideal trustee of a Nevis trust

 

[369]

What is the main diffrence between a Cook Island Trust and Cook Island foundation other than that the foundation is a legal entity ?

 

[JohnnyDoe]

What is the main diffrence between a Cook Island Trust and Cook Island foundation other than that the foundation is a legal entity ?

A trust and a foundation are two different types of legal structures.

 

[369]

A trust and a foundation are two different types of legal structures.

I mean the main diffrence in advantages expecially between the cook island trust and cook island foundation

 

[JohnnyDoe]

I mean the main diffrence in advantages expecially between the cook island trust and cook island foundation

These are just different tools, it doesn’t make sense to compare between them: it would be like discussing the advantages of a hammer and a screwdriver, each serve a different function.

 

[lacomaco]

Can you elaborate?

Same in Nevis, foreign judgments are not recognized.

They have to find and appoint Cook island lawyers which is much harder than to find them in Nevis - geographical distance counts

 

[JohnnyDoe]

They have to find and appoint Cook island lawyers which is much harder than to find them in Nevis - geographical distance counts

Lawyers are one thing there will never be any shortage of, in every corner of the world.

 

[apres777]

Did anyone actually pursue opening / operating a Nevis Trust?

Would love to hear some more insights on this topic.

Obviously pretty hard to find reliable information on this besides lawyers trying to sell this kind of structure.

 

[JohnnyDoe]

Did anyone actually pursue opening / operating a Nevis Trust?

Would love to hear some more insights on this topic.

Obviously pretty hard to find reliable information on this besides lawyers trying to sell this kind of structure.

No problems at all with my Nevis trust. Of course don’t think to be able to just pop in any bank or emi and open an account with it.

 

[JohnLocke]

No problems at all with my Nevis trust. Of course don’t think to be able to just pop in any bank or emi and open an account with it.

How complicated is it to get banking for such an entity, you say I should not expect to walk into a bank just like this? Are there banks better than others?

 

[apres777]

No problems at all with my Nevis trust. Of course don’t think to be able to just pop in any bank or emi and open an account with it.

Did you follow your plan with getting banking not for the trust but for trust owned entities instead?

I could only imagine it's pretty though to get onboarded with a Nevis Trust as shareholder.

 

[JohnnyDoe]

How complicated is it to get banking for such an entity, you say I should not expect to walk into a bank just like this? Are there banks better than others?

Private banks will open an account if you meet their minimum deposit requirement. Citè Gestion and UBS are fine with opening for an offshore company owned by a Nevis trust.

Did you follow your plan with getting banking not for the trust but for trust owned entities instead?

Yes

I could only imagine it's pretty though to get onboarded with a Nevis Trust as shareholder.

Not really, provided that the documents are in order.