A Cook Islands trust is one of the strongest asset protection tools available. Here’s a concise overview of how much it costs to set up a Cook Islands trust.
Cost to Set Up a Cook Islands Trust
The initial setup cost of a Cook Islands trust ranges from $15,000 to $30,000. The cost depends on the complexity of the trust and the experience of the attorney. Trustee fees can range from $3,000 to $8,000 annually.
Ongoing Costs and Maintenance
Besides the setup costs, there can be ongoing fees associated with maintaining a Cook Islands trust. These fees cover the trustee’s management of the trust assets, legal fees for periodic reviews of the trust structure, and various banking and transaction fees.
Is a Cook Islands Trust Worth the Cost?
A Cook Islands trust offers strong protection from future creditors and legal claims However, the trust’s offshore nature means relinquishing some control over your assets to a trustee in a foreign jurisdiction, which might not be comfortable for everyone.
A Cook Islands trust is not usually worth it unless you will be transferring $1 million or more in cash and securities.
Is It Right for You?
Deciding whether a Cook Islands trust is suitable for your situation involves weighing the level of asset protection needed against the costs and potential discomfort of managing assets in a foreign jurisdiction.
High net-worth individuals, those in high-risk professions, or individuals with substantial estate planning needs often find these trusts beneficial. However, everyone’s situation is unique.