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Cook Islands asset protection trust: key features and rules
A Cook Islands asset protection trust is an international trust under the International Trusts Act 1984. The 1989 amendment added sections headed fraud, foreign judgments and retention of control and benefits. This page lists each rule by section heading with its source and date, and your lawyer confirms how each applies to your deed.
Reviewed by a senior trust administrator, updated
The legal frame at a glance
What the law provides, with the source number for each item.
Key facts
- Trust structure
- Registered; non-resident beneficiaries; listed company as trustee or power holder[1]
- Asset protection rule
- 1989 Act: bankruptcy (13A), fraud (13B), foreign judgments (13D), spendthrift (13F)[2]
- Reserved settlor powers
- 1989 Act section 13C is headed retention of control and benefits[2]
- Registration
- 1984 Act provides an annual certificate of registration[1]
Numbers in brackets point to the Sources list at the end of this page.
Swipe sideways to see the whole diagram.
- SettlorSets up the structure and transfers assets into it
- transfers assets under a trust deedTrusteeHolds the assets and manages them under the trust deed
- holds and distributesBeneficiariesPeople who benefit from the trust under its terms
- Trustee holds legal titleTrust assetsThe property held in the structure
Roles and notes
| Part of the structure | What it does |
|---|---|
| Settlor | Sets up the structure and transfers assets into it |
| Trustee | Holds the assets and manages them under the trust deed |
| Beneficiaries | People who benefit from the trust under its terms |
| Trust assets | The property held in the structure |
- As enacted, the 1984 Act asks for a trustee or power holder that is a listed type of company.
- A protector is a role the deed may create, often with power to approve distributions or replace the trustee.
- The deed names or describes the beneficiaries, and the trustee acts only within its terms.
- As enacted, the Act required beneficiaries to be non-resident at all times; settlors usually live abroad too.
Cook Islands trust law and its sources
The 1984 statute, Act No. 14 of 1984, is the core of the regime. A structure under it is often called a Cook Islands offshore asset protection trust, because the trustee and the governing law sit outside your home country.
The Financial Supervisory Commission publishes it on its legislation page. Amending Acts dated from 1985 through to 2013 sit alongside it, together with the regulations on forms and fees.
The 1989 amendment, Act No. 23, added the protective sections. It inserted a run of sections numbered 13A to 13I.
Their headings include bankruptcy, fraud, retention of control and benefits, foreign judgments and spendthrift beneficiaries.
The provisions s.13G to s.13I cover governing law and related matters, and your lawyer confirms how they apply to your deed.
Who may act as trustee
As enacted, section 2 of the 1984 Act required at least one trustee, or one holder of certain powers, to be a registered foreign company, an international company or a trustee company. Your lawyer confirms how it applies to your deed.
A private individual is therefore not the starting point under that text. The trustee is named in the deed, and a Cook Islands lawyer reads that choice before you sign.
Who holds the roles
In practice a trust company in the Cook Islands holds the trustee role; we are your contact as a settlor living abroad.
You can choose other people for other roles. A protector, an investment adviser you appoint, or a co-trustee outside the islands may be possible, subject to the deed and to advice from a Cook Islands law firm.
The Cook Islands firm advises on each role before it goes into the deed.
Features the law allows
The section headings below point to drafting choices your lawyer may consider. Each one is a tool, not a result we promise.
| Section | Heading |
|---|---|
| s.6 (1984) | Perpetuity period (your lawyer confirms how it applies to your deed) |
| s.13A (inserted 1989) | Bankruptcy |
| s.13B (inserted 1989) | Fraud |
| s.13C (inserted 1989) | Retention of control and benefits |
| s.13D (inserted 1989) | Foreign judgments |
| s.13F (inserted 1989) | Spendthrift beneficiary |
| s.13G to s.13I (inserted 1989) | Governing law and related provisions (grouped here; your lawyer confirms each heading) |
Source: Act No. 14 of 1984 and Act No. 23 of 1989, FSC copies, 5 November 2026.
The detail inside each section is what most commentary focuses on, and it is the part your lawyer reads closely.
Your Cook Islands lawyer reads that detail against your deed, and the facts of your case matter more than the headline rule.
Our page on wealth structuring and asset protection explains how we approach planning against claims in general.
Limits and requirements
The protective features come with conditions, and a structure that ignores them can fail. The main ones your lawyer will raise are these.
- Residence. As enacted, the Act required beneficiaries to be non-resident at all times. Your lawyer confirms how it applies to your deed.
- Registration. As enacted, a trust was an international trust only once it was registered. The 1984 Act provides for an annual certificate of registration.
- Timing of transfers. How the timing of a transfer relates to an existing or expected claim is a point counsel examines under the fraud sections. Your lawyer reviews timing before anything moves.
- Your home courts. A court at home may treat you as still owning assets you control, whatever the island rules say. Retained control is a frequent point your lawyer checks.
- Records and conduct. The trustee must act under the deed in practice, with real meetings and resolutions.
We never describe these trusts as making assets untouchable. The structure gives your lawyer a set of rules to work with, and outcomes depend on facts and on courts we do not control.
The formation steps and documents show where these checks happen during set-up.
Where these rules come from
Every statutory point on this page comes from the statute or from the Financial Supervisory Commission website.
The FSC publishes the 1984 and 1989 Acts as copies of the original printed text.
Practical questions about running the trust are covered in our plain answers to common questions. For an overview of how the structure works, return to the Cook Islands trust guide.
For what each part costs, see the breakdown of set-up and yearly charges.
Frequently asked questions
Which law governs a trust in the Cook Islands?
The International Trusts Act 1984 governs an international trust, read with the amending Acts the Financial Supervisory Commission lists up to 2013. The deed names its governing law. The 1989 amendment added sections headed fraud, foreign judgments and retention of control. Your lawyer confirms how it applies to your deed.
Can a trust in the Cook Islands have a protector?
Yes. The deed can create a protector and set its powers, such as consenting to distributions, adding beneficiaries or replacing the trustee. Your lawyer advises who holds the role. A protector with wide powers tied to the settlor can weaken the structure.
Sources
- Act No. 14 of 1984 (FSC copy), read 2026-11-05.
- International Trusts Amendment Act 1989 (No. 23), FSC copy, read 2026-11-05.
- Financial Supervisory Commission, Legislation and Regulations, read 2026-11-05.