Cook Islands trusts & FLPs: why early planning matters

Full transcript

0:10 Hey, I’m Max Dilendorf, attorney based in New York.

0:14 At our firm, we assist U.S. and global families with estate planning, asset protection, and wealth preservation strategies—both here in the U.S. and in key offshore jurisdictions like Switzerland, Liechtenstein, and the Cook Islands.

0:29 Today I want to talk about something critical when it comes to protecting your assets—timing.

0:34 Whether you're setting up a Cook Islands Trust, a domestic Family Limited Partnership (which we’ll cover in the next episode), or any other asset protection strategy—timing matters more than most people realize. Understanding the UVTA and Section 4 Why? Because in the U.S., we have something called the Uniform Voidable Transactions Act, or UVTA. It’s been adopted in many states, including places like New York and California. Under Section 4 of the UVTA, if a creditor believes you moved assets specifically to avoid paying a debt—or to “hinder, delay, or defraud” them—they can ask a court to unwind that transfer.

1:15 Even if the planning was legal, the timing and intent behind it are what courts care about.

1:22 So here’s the key takeaway: you’ve got to plan ahead—before there’s a litigation, before a claim is on the horizon. Because once a dispute is in motion, even smart planning can be challenged.

1:34 Smart estate planning includes asset protection. This could mean a Family Limited Partnership, an offshore trust, or both. But these techniques work best when they’re set up proactively, not reactively. Plan when there are no red flags. When there’s no pressure. That way, it’s clear you’re not reacting to a specific threat—you’re just thinking long-term and being responsible. Now, in regards to Family Limited Partnerships, or FLPs, these are domestic planning vehicles often used to: -Consolidate and protect family-owned businesses or real estate, -Shift value to the next generation in a tax-efficient way, -And add a layer of protection against future liabilities.

2:22 We’ll go deeper into how they’re structured and how they work in future episodes: But whether you’re looking at offshore trusts, FLPs, or other wealth protection strategies, the message is the same: start early, while you still have a clean slate.

2:39 Thank you for watching. I’m Max Dilendorf, and I’ll see you in the next episode.

A transcript of the recording, so it reads as speech rather than as prose. It explains the law in general terms and is not advice on your own situation, which turns on facts this video cannot know.