The Cook Islands, for those who are savvy in offshore entities, will know that it is a paradise to protect your assets. Why is that so?
The Cook Islands are regarded as having the best asset protection trust legislation. After making some amendments to the International Trusts Act in 1989, the Cook Islands was the first jurisdiction in the world to include asset protection features in its trust legislation. This amendment gives clients an extra layer of protection.
Just to highlight the unique part of the Cook Islands Trust Act section 13D.
13D. Foreign judgments not enforceable - Notwithstanding the provisions of any treaty or statute or any rule of law, or equity, to the contrary, no proceedings for or in relation to the enforcement or recognition of a judgement obtained in a jurisdiction other than the Cook Islands against any interested party shall be in any way entertained recognised or enforced by any Court in the Cook Islands to the extent that the judgement -
(a) is based on the application of any law inconsistent with the provisions of this Act [or of the Trustee Companies Act 1981-82 or]
(b) relates to a matter or particular aspect that is governed by the law of the Cook Islands.]
Section 13D was substituted by s.13 of the International Trusts Amendment Act 1995-96.
Through this amendment, we can see that the Cook Islands emphasis a lot on asset protection. So much so that foreign judgements may not be enforceable in a Cook Islands Trust.
This is the reason why we are bringing in services from the Cook Islands. We believe that the Cook Islands is a unique jurisdiction and it will benefit our clients in the long run. Although it is priced above most of the offshore services, it may worth it due to its unique feature.
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