Timing
Before any claim
The most important variable
Easiest
Cash and securities
Days
Hardest
Real property
Conveyancing adds weeks
Can stage
Yes
Fund liquid assets first
When to fund
As long before any foreseeable dispute as possible. Once a cause of action exists the section 13B limitation clock starts. A transfer made after the clock is running can be challenged within the window, and one made while a claim is live faces the strongest possible inference about intent. The trust exists after execution and registration; funding can happen in stages.
How funding works
Each asset is transferred to the trustee. Cash and securities: account retitling or new accounts in the trustee name. Private company shares: stock transfer and register update. Real property: conveyancing in the country where it sits. LLC membership interest: assignment agreement and register update. The trustee reviews and accepts each asset individually.
Asset by asset
| Asset | Mechanism | Timeline |
|---|---|---|
| Cash | Wire transfer to trustee account | Days |
| Listed securities | Account retitling or transfer instruction | Days to one week |
| Private company shares | Stock transfer, register update, co-shareholder consent if required | Two to four weeks |
| LLC membership interest | Assignment agreement and register update | One to two weeks |
| Real property | Conveyancing in the property jurisdiction | Weeks to months |
| Cryptocurrency | Key transfer to trustee custody arrangement | Varies by trustee |
Staging
Fund liquid assets first. The trust is established and protective provisions attach on registration. Cash and securities move in days. Property and company transfers run in parallel. This removes the slowest assets from the critical path.
The solvency requirement
The trustee requires a sworn solvency statement and personal balance sheet before settlement. Retained assets are valued at the date of transfer, not the date of litigation. Retain enough outside the trust to meet any reasonably foreseeable claim, and document that retained position thoroughly at the time.
See which assets a trust can hold and what the trustee requires.
(Review & sourcing)
Written by
Connor Steens
BBus, business development
Reviewed by
John Evans
20+ years, offshore structuring
Last updated
General information
Sourced from
ITA 1984 and trustee practice
s.13B
01International Trusts Act 1984 — consolidated text.
02s.13B factsheet — limitation periods and burden of proof.
(COMMON QUESTIONS)
Frequently asked questions about funding a Cook Islands trust
As long before any foreseeable dispute as possible. The section 13B clock starts once a cause of action exists.
No. Staging liquid assets first while property or company transfers run separately is common and usually faster.
Cash and listed securities, transferable in days.
Real property, requiring conveyancing in the property jurisdiction.
Not every trustee accepts it. Those that do review provenance and establish key custody.
Enough to meet any reasonably foreseeable claim. A transfer leaving you unable to satisfy a claimant goes to the second statutory limb.
Section 13B(2) values retained assets at the transfer date. A contemporaneous balance sheet is the strongest evidence the second limb cannot be satisfied.
Yes. The trustee reviews each additional asset the same way as the original funding.
(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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