{"id":4816,"date":"2016-07-11T04:50:40","date_gmt":"2016-07-11T08:50:40","guid":{"rendered":"http:\/\/www.escapeartist.com\/?p=4816"},"modified":"2020-07-06T13:53:29","modified_gmt":"2020-07-06T17:53:29","slug":"cook-islands-litigation-protection","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/cook-islands-litigation-protection\/","title":{"rendered":"Cook Islands Litigation Protection"},"content":{"rendered":"

The Cook Islands offshore asset protection trust provides the best litigation protection available. If you\u2019re in a business or industry that\u2019s prone to litigation, or just want to put a nest egg outside of the reach of civil creditors, here\u2019s why Cook Islands litigation protection is far superior to anything available in the United States.<\/p>\n

The first and most basic form of litigation protection offered by the Cook Islands is distance from US judges and courts. Laws in the United States are constantly in flux and being interpreted by activist courts. The focus of the US litigation system to make claimants whole whenever possible. That\u2019s great if you are the one filing the claim\u2026 not so great if you\u2019re being sued.<\/p>\n

Little attention is paid the rights of defendants in these cases\u2026 and some some say defendants have no rights in the US but the right to write a big check. Combine this with a legal system where lawyers work on commission (contingency) and you see why high net worth individuals seek a more \u201cfriendly\u201d jurisdiction for their assets.<\/p>\n

Cook Islands litigation protection means that, no matter the result of a US civil case, the creditor will be unable to reach your assets. The Cook Island offshore trust<\/a> insulates those assets behind an impenetrable wall and will not honor a judgment from the US.<\/p>\n

While any asset in the US is subject to a US judgement, offshore assets are out of the reach of US courts. A US judge might pierce a US corporation, family trust, or other domestic structure, they can\u2019t reach foreign assets.<\/p>\n

A few words of warning here:<\/p>\n

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  1. US government agencies, and possibly civil creditors, can reach any bank account at a bank that has a branch in the US. If you go offshore, stick to banks that do not have offices in the United States.<\/li>\n
  2. Real estate in the United Kingdom, France, and Canada can be seized by US government agencies and possibly civil creditors.<\/li>\n
  3. US courts and judges have control over any and all assets in the United States. Cook Island litigation protection does not extend to assets owned by the trust which are domiciled in the United States.<\/li>\n<\/ol>\n

    Offshore asset protection and Cook Island litigation protection is intended to secure cash and foreign assets from future<\/u> civil creditors. If you already have a problem, it might be too late to go offshore. Asset protection required planning and foresight.<\/p>\n

    Another often overlooked benefit of the Cook Islands litigation protection trust is that it might just prevent a case from being brought in the first place<\/strong>. Many US lawyers work on contingency, which means they get 33% of whatever is recovered.<\/p>\n

    If a lawyer knows that your assets are well protected, they may not be willing to take a case on contingency. They\u2019ll probably want a big retainer upfront, which often puts a chill on the case in the eyes of the prospective plaintiff.\u00a0 As a result, a Cook Island trust can prevent a case from being brought or help you settle it for pennies on the dollar.<\/p>\n

    Next, litigation protection in the Cook Islands is constantly evolving. Just as lawyers and judges are rewriting US laws to favor plaintiffs, the Cook Islands is working hard to combat those changes and protect defendants.<\/p>\n

    The Cook Islands Trust Act has been and will continue to be amended to give settlors security and certainty that the trust can be used to preserve their assets from creditors. The International Trust Act has been continuously updated to make it more difficult to bring a claim and, when one is brought, to make the playing field more favorable to the defendant.<\/p>\n

    Adding even more flexibility, Cook Islands litigation protection structures are portable<\/strong>. We can build in clauses that allow you to move the assets and the trust if a plaintiff is making headway in the Cook Islands courts.<\/p>\n

    For example, once the person attacking you has spent a lot of money on lawyers, you can move the trust and its assets to another asset protection jurisdiction such as Belize. This will force the plaintiff to start all over with new lawyers in that country.<\/p>\n

    Here are a number of additional litigation protection components of a Cook Islands trust:<\/p>\n