Facts About Cook Islands Trust For Asset Protection

These are uncertain times. Every individual needs to think of preserving and protecting their assets. Sure, you may strive to earn more but losing your entire wealth due to a wrong financial decision can be devastating. It makes more sense to formulate strategies for protecting the existing wealth and other assets before going ahead and making more wealth. One of the most popular ways is to consider creating a Cook Islands Trust for Asset Protection.

The term is sure to surprise you as you are an American citizen and eager to protect your assets when residing in the country. No worries! First things first though! You must get information about the nature of such trusts and the benefits of creating a trust situated on a far-off island.

Purpose of Cook Islands Trust for asset protection

It is a good idea to search to gather information about Cook Islands Trust. It is interesting to note that such a trust can be set up according to the legal standards of the Cook Islands. The Trusts are recognized to be one of the most secure forms of asset protection for people located around the world. Introduced way back in 1984, the Cook Islands Trust has achieved the stellar reputation of being the gold standard for the protection of assets. It can be used effectively as a part of estate planning as well. Professionals with a high level of litigation risks have found this type of trust to provide perfect protection. Moreover, individuals who want to escape creditors find setting up the trusts to be beneficial too.

Advantages of Cook Islands Trust

The trust happens to be an offshore one that is widely used by people eager to protect their assets and preserve their wealth for the future. Some of the reasons that have driven the popularity of these trusts include the following:

Non Recognition of US Judgments– Any judgment issued by a court outside the territory of Cook Islands is not recognized by the local judiciary. This indicates that the trust protects the concerned asset owner from creditors operating in the USA. The creditors who are eager to pursue litigation against the asset holder would have to file t in the local court well before the 2-year period ends. The procedure is lengthy and too complex for most creditors who are willing to let go of the money.

Succession Planning Advantage– Yes! Most trust setters think of protecting their assets when setting up the trust fund yet the trust can be a good vehicle for succession planning as well. A perpetual trust can remain in place as long as the person setting up the fund wills it. With no foreign inheritance laws prevalent in Cook Islands, succession of the heirs is guaranteed as long as they meet the legal standards of Cook Islands.

Cook Islands Trust for Asset Protection is considered to be an ideal vehicle for self-employed professionals. Medical practitioners, financial accountants, developers, lawyers, and business owners can protect their tangible and intangible assets without being anxious about forfeiting their assets.