Cook Islands trusts explained: the role of the trustee

Full transcript

0:10 Hi, I’m Max Dilendorf, a New York-based attorney and founder of Dilendorf Law Firm.

0:16 Our law firm assists U.S. and global families with estate planning and, cross-border structuring.

0:22 In this episode, I want to talk about one of the most important pieces of any Cook Islands trust structure: the trustee. If you’re a U.S. client exploring offshore planning, understanding the trustee’s role—and how they’re regulated—is critical.

0:43 Let’s start with the basics. Under the Cook Islands Trustee Companies Act of 2014, every Cook Islands trust must have a licensed trustee that’s physically located in the Cook Islands. You can’t set up a valid Cook Islands trust without one.

1:00 The trustee becomes the legal owner of the trust assets. They manage those assets according to the terms of your trust agreement—what we call the Trust Deed.

1:11 They’re bound by law to act in the best interests of the trust and its beneficiaries who hold equitable title to the trust assets. These trustee are regulated and licensed by the Cook Islands Financial Supervisory Commission—also known as the FSC.

1:31 Currently, there are only eight trustee companies licensed in the Cook Islands. And getting that license is a serious process. Under the Trustee Companies Act of 2014, any trustee company must: – Have a physical office in the Cook Islands – Submit to FSC annual financial audits – Maintain professional liability insurance – And comply with strict anti-money laundering and counter-terrorism financing rules These are regulated fiduciaries companies with actual offices, people, and accountability.

2:05 Now, at our firm, we’ve worked with several of the leading trustee companies in the Cook Islands.

2:11 We help our clients select the right trustee based on their objectives, asset profile, and trust structure.

2:20 It’s also important to understand where the trust’s assets are held.

2:25 The trustee doesn’t physically hold your assets.

2:27 Instead, assets are typically held in secure, segregated accounts in top-tier banking jurisdictions—usually Switzerland or Liechtenstein.

2:38 Those assets are often owned through a Limited Liability Company that’s held by the trust.

2:44 The trustee oversees the structure, but the actual assets sit in financial institutions.

2:51 One more thing: When a client establishes a Cook Islands trust, they typically appoint a Protector. That’s usually a trusted attorney or professional advisor who has the authority to remove and replace the trustee if needed.

3:09 This means you don’t lose control. The trustee has power, but the Protector is there to ensure that your wishes are respected long-term. This model gives you professional oversight, legal protection, and international diversification, and compliance framework that satisfies U.S. reporting requirements If you’re thinking about offshore planning, understanding how trustees work under the 2014 Act is a critical first step.

3:44 Thanks for watching. I’m Max Dilendorf. 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.