Governing law
Cook Islands
ITA 1984
Must name
Licensed trustee
At least one
Must include
Anti-duress clause
If protection is the goal
Cannot bind
Letter of wishes
Defeats independence
What the deed is
The trust deed is the founding instrument. It names the parties, defines the beneficiaries, sets out trustee powers and duties, and states the governing law. It is governed by the International Trusts Act 1984 and cannot override it. Every Cook Islands trust case that has failed has turned, at least in part, on what the deed said or did not say.
What must be in it
Three threshold conditions: at least one licensed Cook Islands trustee must be named; no beneficiary may be Cook Islands resident; and the trust property must not include Cook Islands land. Beyond those the Act gives considerable drafting freedom, which is both an opportunity and a risk.
The five provisions that matter most
The anti-duress clause. Directs the trustee to disregard instructions given under compulsion. A trust without one lacks the primary mechanism for holding assets against foreign pressure. See duress clause.
Protector provisions. Define who holds the role, their powers, and succession. A settlor serving as own protector created the structural failure in FTC v Affordable Media.
The beneficiary class. Who can benefit and what trustee discretion over distributions looks like. See beneficiary class.
The governing law clause. Must explicitly confirm Cook Islands law. Not automatic on registration.
Reserved powers. What you keep, stated explicitly. See reserved powers.
What it cannot contain
A binding letter of wishes removes the trustee genuine discretion. The power to revoke the trust or remove the trustee at will, held by the settlor, is a power of ownership that courts treat accordingly. Both can be held by a genuinely independent protector. Neither can safely be held by the settlor.
Who drafts it
The trustee counsel drafts the deed as part of accepting the settlement. You may review the draft and propose amendments. What matters is that the five provisions above are not left to a generic default built for a non-litigated trust.
See duress clause, reserved powers and trustee requirements.
(Review & sourcing)
Written by
Connor Steens
BBus, business development
Reviewed by
John Evans
20+ years, offshore structuring
Last updated
General information
Sourced from
Primary statute
ITA 1984 and trustee practice
01International Trusts Act 1984 — consolidated text.
02Trustee Companies Act 2014 — licensing requirements.
(COMMON QUESTIONS)
Frequently asked questions about the Cook Islands trust deed
At least one licensed trustee, confirmation that no beneficiary is Cook Islands resident, and exclusion of Cook Islands land. Everything else is a choice.
The anti-duress clause, which authorises the trustee to refuse a repatriation order without breaching its duties.
No. The trustee counsel drafts it. You may review and propose amendments.
Binding the letter of wishes, giving the settlor power to revoke or remove the trustee at will, and retaining control that makes the trustee look like an agent.
No. The governing law clause must state it explicitly.
If the five material provisions are properly included rather than left to generic defaults, yes.
It can be amended while the trust is operating, but amendments after a dispute arises are scrutinised for intent.
The trustee, who takes on the duties it specifies. The settlor transfers assets and retains whatever powers the deed carves out.
(MORE ON THE SETUP)
References and articles on the Setup
References
In-depth reference pages on the Setup.
1 min
Cook Islands Trust Beneficiary Class
Who can benefit, why their discretionary interest is not attachable property, and the drafting choices that preserve flexibility.
1 min
Cook Islands Trust Letter Of Wishes
Non-binding guidance to the trustee. Why it must not be binding, what it should say, and how often to update it.
1 min
Cook Islands Trust Registration
What gets filed, what remains private, and why registration triggers the protective provisions rather than deed execution.
1 min
Funding A Cook Islands Trust
Learn how to fund a Cook Islands trust, including asset transfers, timing, and key considerations for effective protection.
1 min
Reserved Powers In A Cook Islands Trust
What you can keep without undermining the structure, what you should not, and the audit question every power must pass.
1 min
The Cook Islands Trust Deed
What must be in the deed, the five provisions that matter under pressure, and what cannot be included.
1 min
The Cook Islands Trust Duress Clause
Authorises the trustee to refuse a repatriation order. What it protects and what it cannot, explained through Anderson.
1 min
The Cook Islands Trust Jones Clause
Names a known creditor and authorises payment. The counterintuitive tool that weakens the fraudulent intent argument.
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