Cook Islands is located south of the Island of Hawaii and has grown a reputation as one of the offshore jurisdictions with very strong judicial precedents regarding the protection of offshore asset trusts. There have been instances when the United States government was unable to provide a compelling case for the courts to crack the trust. These are just examples of how much asset protection the laws of Cook Islands offer. It must be clearly stated that Moss has and will always work within the ambit of all relevant laws to protect the assets of our clients.
When your assets are protected by an offshore Cook Islands Trust, once you come under attack by an aggressive litigant who is able to get verdict against you and the court issues an order for you to return your money, you comply by transmitting same order to the trustee and show proof of such to the judge evidencing your compliance. The trustee, however is bound not by the laws of your country of domicile but the trust deed pursuant to which he will not release funds under duress conditions such as court order. Therefore, you have complied but the trustee has not.
There are also questions as to the trustworthiness of the trustee considering the fact that the settlor will be placing his/her hard-earned assets in the person’s hands. The permission to acquire a trusteeship license in the Cook Islands follows a selective process in order to maintain probity. Again, considering the strategic placement of the finance industry and the offshore trusts sector in the Cook Islands, a lot of scrutiny and protection is given to the industry. There is therefore licensing, auditing and continuous monitoring of trustees in the jurisdiction. Additionally, the trustees are bonded by an insurance company thus ensuring insurance cover for your funds.