Jurisdictions
At Offshore Broker, we carefully select the jurisdictions we choose to offer, ensuring that the legislation is not only fit for purpose but also that the products available provide true benefits to our clients.
The Cook Islands
The Cook Islands, a self-governing territory in association with New Zealand, utilizes the New Zealand Dollar (NZD) as its official currency. It is widely recognized as a premier asset protection jurisdiction, particularly for offshore trust structures and corporate entities. Offering highly favorable conditions for asset protection, the Cook Islands provides a robust legal framework and privacy provisions that appeal to clients seeking secure and confidential wealth management solutions. Its jurisdictional advantages include comprehensive creditor protection laws and the option for perpetual duration of trusts, making it an ideal choice for those seeking long-term asset preservation strategies. The Cook Islands has a strong history of case law that consistently upholds the validity and effectiveness of properly established offshore structures, further enhancing its reputation in the offshore finance industry.
- Assets settled into trusts benefit from specific protection based on timing relative to a creditor’s cause of action. Assets settled prior to a creditor’s claim are fully protected from the date of settlement. Those settled more than two years after a creditor’s claim accrues are protected unless proceedings have already begun against the settlor. Assets settled within two years of a claim accrual are protected if the creditor fails to commence proceedings within one year of settlement.
- Claims to set aside a transfer to a trust must be brought within two years. To succeed, the creditor must prove beyond reasonable doubt, in a Cook Islands court, that the transfer was made with fraudulent intent to defraud a specific creditor and rendered the settlor unable to meet the creditor’s claim.
- Forced heirship legislation is not recognized.
- The only remedy against an LLC member is a non-renewable five-year charging order on their membership interest, without the ability to enforce distributions, interfere in management, or liquidate the LLC.
Confidentiality
- The Cook Islands ensures strict confidentiality regarding the identity of managers, members, beneficial owners and.
- This information is not stored in any centralized register, it is an offense to disclose this information to a third party unless authorized by law to do so, providing enhanced privacy for stakeholders.
Highly Regarded
- The Cook Islands is widely recognized and continuously growing in popularity as a top-tier jurisdiction for asset protection and wealth management solutions. Its reputation stems from robust legal frameworks that prioritize confidentiality, asset security, and operational flexibility for companies and trusts. These incredibly effective structures have a well established track record in the offshore finance industry.
Nevis
Nevis, a Caribbean island nation, is renowned for its robust asset protection laws and offshore financial services, particularly its LLC (Limited Liability Company) product. Offering favorable legal provisions and strict privacy protections, Nevis attracts clients seeking secure wealth management solutions. The jurisdiction's LLC laws provide strong creditor protection and operational flexibility. Its proximity to the United States and use of the Eastern Caribbean Dollar (XCD), which is pegged to the USD, further enhance Nevis' appeal for investors seeking stability and accessibility in offshore finance.
Confidentiality
- Nevis boasts strong confidentiality provisions for international trusts and LLCs. It is an offense to disclose information about an international trust to a third party without proper authorization or legal requirement. The identity of managers, members, and beneficial owners of LLCs is held confidentially by Nevis registered agents.
- There is no centralized register retaining this information, ensuring privacy for those conducting business in Nevis.
LLC
- Nevis LLCs provide strong creditor protection.
- Property transfers to LLCs are safeguarded from creditor clawback using fraudulent transfer provisions similar to those for Nevis trusts.
- Creditors must pay a bond to the Nevis High Court before pursuing judgments against an LLC or its members.
- The only remedy available against an LLC member is a non-renewable three-year charging order over membership interest, without the ability to force distributions, interfere in management decisions, or trigger LLC liquidation, offering security to LLC members against creditor actions.
Asset Protection Features
- Nevis offers robust asset protection through its trust legislation. Assets settled into a Nevis trust before a creditor’s cause of action accrues or settled more than one year after are fully protected from the date of settlement.
- Prior to commencing proceedings a creditor must pay a significant bond of USD 100,000 into the Nevis High Court, adding a layer of protection against frivolous claims.
- To succeed in a fraudulent transfer claim against a Nevis trust, a creditor must prove to the Nevis High Court beyond reasonable doubt that the settlor intended to defraud that specific creditor and that the transfer left the settlor unable to meet the creditor’s claim. This high burden of proof strengthens asset protection by making it challenging for creditors to challenge legitimate trust arrangements.
- Forced heirship legislation is not recognized