It is natural for you to consider protecting your assets properly once you have earned a sizable amount of fortune. Apart from preserving your nest egg, you may want to bequeath some of your wealth to the right heir too. No worries! Setting up a Cook Islands Trust can provide you with the best possible solution.
It is indeed interesting to learn that establishing such a trust can help you remain protected from the US jurisdiction. There are many other benefits associated with it as well.
Advantages of holding assets in a Cook Islands Trust
- The assets transferred to the trust after two years of the creditor’s actions can enable you to remain fully protected.
- The creditor may decide to pursue the case only by filing a case against you in the Cook Islands. This needs to be done within a year of the assets being transferred to the trust fund.
- The transfer will not be deemed fraudulent by the US jurisdiction. However, filing such a case in the Cook Islands may be complicated and hugely expensive for the creditor.
- The litigant will only be able to win such a case when an instance of fraud has been proved beyond doubt in the local court of Cook Islands.
Apart from being protected from creditors and the US judgments, you may obtain a host of other advantages too.
Some of the best reasons for you to establish such a fund in the Cook Islands are:
- Succession Planning– Both estate and succession planning become important once an individual begins to age and is regarded as an elderly person. Thankfully there are no rigid rules against perpetual trusts in Cook Islands. You, as the settler, get to enjoy lifetime validity on the assets transferred to the trust and beyond once you choose the beneficiary. Besides, you get the opportunity to avoid forced heirship laws as the trust is managed according to the agreement that you have signed when establishing it.
- Tax Benefits– You may be able to get certain tax benefits depending on your state of residence. You will also be gratified to learn that The Cook Islands will not impose any tax on you, as the settler or on the trust. This will enable you to save a considerable sum. There is no tax imposed on gifts, estate, income, or capital gains, therefore. However, it is vital to get in touch with a tax advisor well before establishing the trust. This will help you to maximize the benefits.
- 100% Asset Protection– Professionals such as doctors, lawyers, and developers may face significant difficulties when trying to protect diverse tangible assets. Having a Cook Islands Trust in place can help them to remain protected regardless of the type of assets that they may own. You may thus transfer a yacht, recreation vehicle, real estate, and/or bullions to the trust to ensure safekeeping.
Financial experts recommend setting up a Cook Islands Trust to obtain the highest level of asset protection even when you reside and work in the USA.