The modern world is highly litigious, and increasingly creditors are receiving disproportionate judgments from the courts. People who have worked hard for their entire life are in danger of having their life savings wiped out by spurious litigation. Liability insurance for professionals is becoming prohibitively expensive.

An offshore asset protection trust (APT) provides the highest level of security for personal assets. Those who most benefit from an APT include persons in high-risk occupations (such as physicians and lawyers), business vendors (particularly those close to retirement), those with a high wealth profile, directors of public companies, and almost anyone who has saved a significant nest egg for their retirement.

The Cook Islands Limited Liability Companies Act 2008 (the Act) follows the model adopted in a number of U.S. States. It goes further, however, to give statutory certainty on several key issues of concern to US attorneys using domestic US LLC statutes. The Act also introduces several unique asset protection features, consistent with the approach taken by the Cook Islands in this area.

Traditional and Modern Trust Planning

Cook Islands unique modifications to traditional trust laws (developed and promoted by members of CIT’s executive team) provide a high degree of flexibility in trust planning. In addition to the protective aspects, there are numerous provisions that enable a Cook Islands trust to be administered without requiring the settlor to give up all control over the trust assets.