Cook Island's International Relationship Property Trust

Posted on June 25, 2022

The Cook Islands recently unveiled new legislation - the International Relationship Property Trust Act of 2022.

The purpose of the Act is to allow couples to settle an irrevocable trust through which they can set out in advance financial terms in the event of separation or dissolution. The Act helps to insure that in the event of separation or dissolution, property that might otherwise be dissipated by judicial direction is preserved and retained intact. The desired outcome is that well thought out succession plans are not ignored, long term investments are not liquidated and sold at "fire sale" prices to comply with a judgment, and that assets do not end up in the hands of one settlor or the other's "new" family. The provisions of the Act may also be applied in situations of domestic partnership.

Like most Cook Islands entities, the IRPT is generally tax neutral in the USA, and not subject to any form of taxation in the Cook Islands or elsewhere. Moreover, like other Cook Islands entities, IRPTs offer excellent asset protection!

Attorneys, are you interested in offering this kind of entity to your clients? If not, you should be! Contact me if you want to discuss!