Asset Protection Counsel Since 1991
Cook Islands Trust Attorney
Cook Islands trusts protect personal wealth from US creditors, lawsuits, and court judgments.
Jon Alper is a nationally recognized expert in asset protection law. Gideon Alper leads the firm’s offshore practice and previously served in the IRS Office of Chief Counsel.
Flat legal fee from $15,000. Plus $5,000/year trustee. No annual legal retainer.
Jon or Gideon personally respond to inquiries within 24 hours, any day of the week. Or call (407) 444-0404 during business hours.
A Cook Islands trust is one of the strongest asset protection tools available. It is administered by an independent trustee company in the Cook Islands, outside the direct authority of U.S. courts. A U.S. court can issue orders against a U.S. person, but not a Cook Islands trustee company or trust assets that have been moved offshore. That distinction is what sets a Cook Islands trust apart from a domestic asset protection trust.
Cost and Attorney Fees
The legal fee is paid in two parts: $5,000 to start, with the rest paid after trustee due diligence.
Legal fees include attorney consultations, trust agreement drafting, trustee coordination, due-diligence preparation, funding strategy guidance, and IRS compliance guidance. Most clients do not need ongoing legal services after formation.
Cook Islands Trust vs. Domestic Asset Protection Trust
Clients often weigh a Cook Islands trust against a domestic asset protection trust (DAPT) in Nevada, Delaware, Alaska, or another DAPT state. The differences are substantive.
| Cook Islands Trust | Domestic APT | |
|---|---|---|
| Governing jurisdiction | Cook Islands law; outside U.S. court authority | U.S. state law; within U.S. court authority |
| Statute of limitations on fraudulent transfer claims | One to two years from date of transfer | Up to ten years under federal bankruptcy law (11 U.S.C. § 548(e)) |
| Evidentiary standard for creditors | Beyond a reasonable doubt | Preponderance of the evidence; some states clear and convincing |
| Foreign judgment enforcement | U.S. judgments not recognized in Cook Islands courts | Full Faith and Credit applies; sister-state judgments enforceable |
| Trustee subject to U.S. court orders | No. Licensed Cook Islands fiduciary. | Yes. Domestic trustee subject to U.S. jurisdiction. |
About Our Firm
Alper Law has helped clients nationwide with asset protection planning since 1991. Jon Alper and Gideon Alper work with every client directly. Our role is to evaluate the legal fit of the structure, explain the tradeoffs, and coordinate the plan if offshore planning makes sense.
Who Should Consider an Offshore Trust
An offshore trust is best suited for clients with meaningful assets, creditor exposure, and a need for protection beyond domestic exemptions, insurance, and LLCs. Most clients have at least $1 million in total assets or at least $500,000 in liquid assets.
A pending legal claim or existing judgment does not automatically rule out offshore planning.
Common client situations
- Business owners and entrepreneurs
- Physicians and high-liability professionals
- Real estate investors and guarantors
- Families with concentrated assets
- Clients facing serious creditor risk, including existing disputes where planning remains legally available
When a Cook Islands trust is not appropriate
- The cost is disproportionate to the assets protected
- Domestic planning already provides enough protection
- The client wants to conceal assets or avoid legal obligations
- The goal is to reduce tax liability
- The client expects the trust to eliminate all court risk
Questions About Offshore Trust Planning
Can a Cook Islands trust be used after a lawsuit starts?
Yes. Post-claim planning is still possible even after a lawsuit is filed or a judgment is entered. The available options depend on the claim, timing, assets involved, existing exemptions, and how the trust would be funded.
How much does the trust cost?
The legal fee is $15,000 for a Cook Islands trust or $20,000 for a Cook Islands trust paired with an offshore LLC. The Cook Islands trustee charges $5,000 per year, including the first year of service.
Is the trust a tax shelter?
No. A Cook Islands trust is designed for creditor protection. U.S. clients must report trust assets and income under applicable U.S. tax and information-reporting rules.
Do I have to give up control of my assets?
The trust is administered by an independent Cook Islands trustee company. When there is no legal threat, you have practical access and planning flexibility. When creditor pressure arises, the trustee can refuse to distribute assets, placing them beyond the court’s reach.
How long does it take to set up?
A Cook Islands trust typically takes three to four weeks to establish. Funding the trust is another four to eight weeks, depending on the bank or brokerage firm you choose. The timeline also depends on how quickly you complete required documentation and the complexity of your assets.
Who acts as the trustee?
The trustee is a Cook Islands trustee company licensed by the Cook Islands Financial Supervisory Commission. We work with several licensed trustees and recommend the one best suited to the client’s situation. We do not receive referral fees, commissions, or compensation from any trustee company.
What annual tax reporting is required?
U.S. settlors must file Forms 3520 and 3520-A annually, report foreign financial accounts on the FBAR (FinCEN Form 114), and file Form 8938 when applicable. These filings are handled by the client’s CPA. The trust does not change federal income tax liability. All income flows through to the settlor’s personal return as a grantor trust.
What happens if a U.S. court orders me to repatriate the assets?
The Cook Islands trustee operates under Cook Islands law and is not bound by U.S. court orders. The trust deed includes a duress clause that activates when the settlor is compelled to demand repatriation. The trustee disregards instructions given under duress. The settlor must disclose the trust honestly to the U.S. court. The trustee’s independent refusal provides the structural protection.
Our Attorneys
Our attorneys specialize in offshore asset protection planning.
Jon Alper
Founding PartnerJon Alper has focused on asset protection planning for more than three decades. His work includes domestic and offshore planning for business owners, professionals, and families seeking creditor protection. He was involved in BankFirst v. UBS Paine Webber, Inc., a significant Florida asset protection case.
Gideon Alper
PartnerGideon Alper leads the firm’s offshore planning practice. He is a former attorney with the IRS Office of Chief Counsel in the Large Business and International Division. He advises clients on Cook Islands trusts, offshore LLCs, asset protection planning, and IRS compliance.