In 2002 the Cook Islands were removed from the OECD blacklist (See, APN, XI, No. 2), and, on May 7, 2003, the Parliament of the Cook Islands passed a suite of Acts to update its money laundering prevention laws and procedures with the expectation of also being removed from the FATF blacklist.
With this issue we continue our periodic review of selected offshore jurisdictions. These reviews cover such factors as the legal system, the geographic location, communications facilities, availability of professional services, and other items we deem pertinent.
This article will focus on just what the title indicates: how and why offshore trusts are used in asset protection planning. The article will review certain aspects of domestic law which limit the ability of a domestic trust to provide meaningful asset protection, and will compare those laws with the laws of certain offshore jurisdictions which address the same issues in a different way, with vastly different results. In addition, the article will highlight selected trust clauses which can enhance the protection afforded by careful selection of a situs jurisdiction.