The Cook Islands, located in the South Pacific, have garnered a reputation for robust asset protection, largely due to the Cook Islands International Trusts Act of 1984. However, the true testament to the strength of Cook Islands Trusts lies not just in their statutes but in the case law that has rigorously tested these trusts over the years. Delving into these court cases offers invaluable insights into the practical application and resilience of these trusts when faced with challenges.

a row of law cases books

FTC v. Affordable Media, LLC (“Anderson Case”)

In the late 1990s, the Anderson Case emerged as a pivotal lawsuit that put Cook Islands Trusts in the spotlight. The Andersons, embroiled in a telemarketing venture that was later revealed to be a Ponzi scheme, faced legal repercussions from the U.S. Federal Trade Commission (FTC). Despite their decision to name themselves as co-trustees, which was a significant oversight, the Cook Islands’ legal framework shielded the Andersons’ trust assets. This case underscores the importance of proper trust structuring and the resilience of the Cook Islands against foreign judgments.

Branch Banking & Trust Co. v. Hamilton Greens, LLC (“Bellinger Case”)

This case revolved around a loan default involving Bellinger. After failing to honor a loan repayment, Bellinger, who had assets in a Cook Islands Trust, was taken to court. Despite U.S. court orders, the Cook Islands Trustee stood firm, refusing to repatriate the assets. This case emphasizes the robustness of the Cook Islands’ asset protection laws, especially when trusts are properly established.

High-Profile Examples:

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  • Nadya Suleman (Octomom): In a lawsuit against her doctor, the defendant’s assets were safeguarded in a Cook Islands Trust. The absence of a case record suggests that the trust’s presence likely deterred recovery or led to a favorable settlement for the defendant.
  • Kevin Trudeau: Despite facing a $37 million judgment from the FTC, Trudeau’s assets, held in a Cook Islands Trust, remained untouched. This case accentuates the challenges creditors face when trying to access assets protected by Cook Islands Trusts.

The Deterrent Effect

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The limited litigation involving Cook Islands Trusts is not indicative of their ineffectiveness. Instead, it highlights their strength. Creditors are often deterred by the rigorous legal framework, the requirement to post a bond, and the challenges of re-litigating claims in the Cook Islands. The few cases that do arise often culminate in settlements or remain unresolved, attesting to the formidable protections offered by these trusts.


The Cook Islands have solidified their standing as a premier jurisdiction for asset protection. The limited but significant case law provides a window into the reliability and resilience of Cook Islands Trusts. Whether confronted with domestic or international legal challenges, these trusts have consistently showcased their prowess in asset protection, making them a prime choice for those in search of robust asset preservation solutions.