Cook Islands

Asset Protection Trusts

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Cook Islands Asset Protection Trusts (CIAPT) are the gold standard for creditor protection globally. Key features include a two-year statute of limitations on fraudulent transfer claims (among the shortest worldwide), requirement for creditors to prove claims "beyond reasonable doubt" (criminal standard, not civil), no recognition of foreign judgments, and strong confidentiality protections. Trusts can hold cash, real estate, portfolios, business interests and IP globally. Settlors can retain significant control through reserved powers and protector roles while maintaining legal separation from assets.

Trust Benefits & Use Cases
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• Protection from lawsuits, creditor claims, divorce settlements and forced heirship rules
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• Multi-generational wealth preservation with no forced trust termination rules
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• Privacy and confidentiality, beneficiary details not publicly registered

• No Cook Islands tax on foreign-sourced income or capital gains
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• Integration with international corporate structures and family offices
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• Ideal for entrepreneurs, medical professionals, property developers and high-litigation-risk individuals

Company Formation
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• International Companies (ICs) with zero tax on foreign-sourced income
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• No audit requirements for most structures
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• Minimum one director and one shareholder (can be the same person)
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• Bearer shares prohibited (strong anti-money laundering framework)
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• Used for holding assets, IP licensing, international trading and investment vehicles
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• Strong privacy but transparent to legitimate authorities (OECD compliant)

Banking & Substance
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• Limited local banking options; typically used in conjunction with international banking elsewhere
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• No physical presence or residency requirements
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• Professional trustee services available for governance and compliance
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• Popular for holding real estate, investment portfolios and business interests in other jurisdictions
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• Works well with US, UK, European and Asian tax residents when structured correctly