Cook Islands

With regards to the captive investment company, I propose setting up a Nevis LLC in conjunction with a Cook Islands offshore trust. The LLC would serve as your primary commercial entity while the trust would provide certain asset protection advantages vis-a-vi potential lawsuits from lenders and other creditors.

The Cook Islands is a very stable, English-speaking, common law country found in the South Pacific. The advantages of a Cook Islands-settled trust are many, including:

-	Strongest asset protection case law history of all offshore jurisdictions
-	Major banking participation: HSBC, ANZ, etc
-	Courts will not recognize judgments that originate in a foreign jurisdiction; creditors must file separate suit in Cook Islands; creditors must prove beyond a reasonable doubt  (eg, a criminal standard versus a by a preponderance of evidence civil standard) that the assets were transferred into the trust in order to defraud the creditor
-	Cook Islands statute of limitations for bringing a claim for a fraudulent transfer is two years. Therefore, by the time the lawsuit in the US is completed, the statute of limitations is likely to have already expired in the Cook Islands.
-	Full privacy
-	“Trust Protector” individual serves as important control mechanism over offshore trustee; carries authority to remove trustee

The advantages of a Nevis LLC include, without limitation:

-	Complete privacy, records of corporation may be kept anywhere in the world
-	Limited liability (eg, no personal liability) to LLC members for debts/obligations of LLC
-	No Nevis taxes; flow through taxation for US tax purposes
-	No limitations on form or amount of stock

The Nevis LLC would be the discretionary beneficiary of the trust. An independent person or company whom you trust serves as the “Trust Protector” – with full authority to remove the Trustee. The Trustee is a licensed, highly trained agency residing in the Cook Islands.

The trust agreement is written such that the Trustee is legally bound to remove the Manager of the LLC when the LLC comes under the “legal duress” – generally speaking, when a creditor has acquired a US judgment and is seeking to enforce it. The Trustee then appoints itself the Manager of the LLC. Your firm may be retained by the trustee as an investment advisor with securities trading authority. The Trustee is bound to accept legal advice from your independent legal advisor. Since an LLC is a “pass through” entity, any seizure of assets must come via an action against the Trust, in the Cook Islands. Moreover, the Trustee will act to change the situs of any assets to the Cook Islands – bank, brokerage accounts, etc (if not already there). Obtaining a seizure of assets in the Cook Islands is exceedingly difficult as explained above. Once the legal duress has passed, the Trustee is under an obligation to restore your firm to the Manager position.

I hope this helps. Please let me know if you have any questions.