Cook Islands trusts: what U.S. clients need to know

Full transcript

0:10 Hey, I’m Max Dilendorf. I’m a New York attorney and the founder of Dilendorf Law Firm.

0:16 My practice focuses on representing private clients—helping them navigate complex onshore and offshore estate structuring, wealth preservation, and legal planning across jurisdictions. Why We’re Talking About Cook Islands Trusts in 2025 In this episode, I want to talk about something that comes up a lot with our private clients in 2025: Cook Islands Trusts. Now, this isn’t some exotic, one-size-fits-all solution—but for certain U.S. clients, it can be a smart part of a broader wealth protection and planning strategy. So today, let’s walk through what a Cook Islands Trust actually is, when it makes sense, and when it doesn’t.

0:56 Let’s start with the basics—what makes a Cook Islands Trust appealing?

1:01 There are a few reasons clients explore them. Top 5 Reasons Clients Explore Cook Islands Trusts #1: Legal Protection First, the legal protection. The Cook Islands developed one of the most advanced legal frameworks for asset protection in the world.

1:11 If the trust is set up properly—and proactively—it can help shield assets from future disputes or claims. And the legal standards there are strict.

1:21 Cook Islands law imposes a one-year statute of limitations for most creditor claims.

1:26 That means if a claim isn’t filed within a year of the transfer, it’s generally barred.

1:32 Even if someone tries to bring a claim, they’re required to prepay all legal fees upfront before the case can proceed. That’s a major hurdle in itself.

1:43 And finally, the burden of proof is extremely high—in fact, it’s beyond a reasonable doubt.

1:48 That’s a much higher legal threshold than the “preponderance of evidence” standard used in most U.S. civil cases. Bottom line: it’s extremely difficult and costly for a potential creditor to break a Cook Islands Trust.

2:01 #2: International Diversification with Compliance Second, it creates international diversification. Many clients want to move some of their wealth outside the U.S – whether it’s pursuing a secondary residency or passport, getting access to more reliable and cost-effective crypto custody solutions, or simply expanding their options in a rapidly changing global landscape.

2:25 That’s exactly what this structure can help with—it adds a layer of distance, not secrecy.

2:31 You still report everything to the IRS, but you’re building an international component into your estate plan. #3: Long-Term, Flexible Estate Planning Third, they’re flexible. You can set them up for multigenerational planning—so you’re not just thinking about your assets today, but how they’ll support your family for decades to come.

2:50 #4: Integration with Offshore LLCs and Banking Fourth, these trusts pair well with things like offshore LLCs and banking. For example, we work clients who use them to hold crypto, gold, or even property abroad through a trust-owned LLC. It’s clean, secure, and it works. #5: Built-In Heir Protection And fifth, you can add in what’s called a “spendthrift provision,” which basically helps protect your heirs from themselves—or from situations like lawsuits, divorces, or bad financial decisions. Swiss Banking + Cook Islands Trusts = A 2025 Trend Now, something we see a lot in 2025 is clients pairing a Cook Islands Trust with Swiss private banking—especially when crypto is involved.

3:27 Why? Because crypto custody in the U.S. is still kind of a mess.

3:32 A lot of U.S. trustees won’t touch it, and the custody solutions that do exist here are often 4 to 5 times more expensive than what you’d pay in Switzerland.

3:44 Swiss custodians are ahead of the curve when it comes to digital assets—and for high-net-worth clients, that can make a big difference.

3:52 That said—Cook Islands Trusts aren’t the right options for everyone.

3:56 They’re expensive to maintain. You’ll need to file annual reports, work closely with your CPA, and stay on top of IRS forms like 3520 and 3520-A. This isn’t something you “set and forget.” And in some cases, a U.S. domestic trust can get the job done just fine—especially if you’re not dealing with international risks or large digital asset portfolios.

4:20 Swiss Banking Without Offshore Trusts? Also worth noting—Swiss banking doesn’t require a Cook Islands Trust. We often set up Swiss accounts under U.S. domestic structures for clients who want the diversification, but not the full offshore compliance load. Final Thoughts: What’s Right for You in 2025 So, bottom line—it’s not about picking the “best” trust.

4:37 It’s about what’s right for you in 2025 and beyond.

4:41 That’s why every structure we build starts with a deep dive into your full situation—your goals, risk exposure, tax profile, and what you want to accomplish long-term.

4:53 If you're considering offshore planning—or just want to understand how these strategies could fit into your estate plan—this channel is here to walk you through it.

5:02 Thanks for watching. I’m Max Dilendorf—subscribe for more, 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.