The True Cost of Setting Up a Cook Islands Trust
notTL;DR- Setup fee: $25,000 (one-time) - includes trust, LLC, bank account coordination, and all documentation.
- Annual fee: $7,000 - covers trustee administration, Blake Harris Law legal support, and trust protector.
- Tax prep: Budget $1,500-$3,000/year for a CPA to file Forms 3520, 3520-A, and FBAR. Cook Islands trusts are tax-neutral - not tax-free.
- Hidden costs to watch for: Other trustees charge $500-$1,500 per asset transfer, per amendment, per distribution. Atlas Trust Company includes all of this in the flat annual fee.
- Bottom line: First-year total runs ~$32,000. For a $5M portfolio, that’s 0.64% of protected assets - compared to potentially losing everything.
Initial Setup Cost: $25,000
Cook Islands asset protection structureoffshore asset protectionWhat’s Included in Your $25,000 Initial Fee:Cook Islands TrustCook Islands LLCAffidavit of SolvencyAsset Protection SupplementFunding Templates for Trust Property TransferMemorandum on IRS and FinCEN Reporting RequirementsOffshore Bank/Brokerage Account Opening by TrusteeIntroduction to Trustee, Protector, and Global NetworkTimeline: 15 Days to Establishment, 15-60 Days to Banking
Annual Maintenance Fee: $7,000 - And What It Really Includes
Breakdown of Your $7,000 Annual Fee:$5,000 Annual Trustee Fee$1,500 Annual Law Firm Fee$500 Trust Protector FeeUnlimited Access to Our Global NetworkTax Implications: Compliance, Not EvasionNo Tax Savings (But That’s Not the Point)Required IRS Reporting (Budget $1,500 to $3,000 Annually)FATCA Compliance (Included in Trustee Fees)Additional Costs to ConsiderAsset Transfer Expenses: $1,000 to $5,000+Major Trust Restructuring: May Incur Additional FeesThird-Party Professional FeesHidden Fees Other Trustees Charge- Asset transfers into the trust: $500 to $1,500 per transfer
- Asset transfers out of the trust: $500 to $1,500 per transfer
- LLC manager appointments or changes: $750 to $1,000 each
- Trust amendments: $1,000 to $2,500 per amendment
- Adding or removing beneficiaries: $500 to $1,500 per change
- Opening new bank accounts: $750 to $2,000 per account
- Distribution processing fees: $250 to $750 per distribution
Frequently Asked Questions
How much does a Cook Islands Trust cost to set up?
Through Blake Harris Law, a Cook Islands Trust costs $25,000 to establish. This covers the complete trust agreement, a Cook Islands LLC, an affidavit of solvency, funding templates, IRS reporting guidance, offshore bank account coordination, and introductions to the trustee and global network. The fee is earned upon receipt and non-refundable.
What are the annual fees for a Cook Islands Trust?
The annual fee through Blake Harris Law is $7,000, which breaks down as: $5,000 to the trustee (covering asset transfers, LLC management, amendments, and distributions), $1,500 to Blake Harris Law for ongoing legal support and annual plan reviews, and $500 to the trust protector. This fee is due 30 days before each anniversary of your trust’s registration date.
Are there tax benefits to a Cook Islands Trust?
No - and be wary of anyone who claims otherwise. A Cook Islands Trust is a grantor trust for U.S. tax purposes, meaning you still report and pay taxes on all trust income on your personal return. The structure is tax-neutral, not tax-free. You will also need to file IRS Forms 3520 and 3520-A annually, plus an FBAR if foreign accounts exceed $10,000. Budget $1,500-$3,000 per year for a CPA to handle these filings. Anyone promising tax savings from an offshore trust is describing illegal tax evasion.
How does a Cook Islands Trust compare to a domestic asset protection trust?
Domestic asset protection trusts (DAPTs) cost less - typically $8,000-$15,000 to set up with $2,000-$4,000 in annual fees. But they remain subject to U.S. court jurisdiction. A domestic judge can order a domestic trustee to hand over assets with a single court order. A Cook Islands Trust operates under Cook Islands law, which does not recognize U.S. judgments. Any creditor must relitigate their claim locally, post a $100,000+ bond, and navigate laws specifically designed to defeat them. The cost difference is small. The protection difference is enormous. See our breakdown of domestic asset protection trust risks.
What happens if I stop paying the annual fee?
If annual fees are not paid, Blake Harris Law may withdraw as counsel, which can cause your planning to become ineffective. The trustee retains a fiduciary obligation to hold your assets, but you lose legal support, annual plan reviews, network access, and active defense if a creditor attacks the structure. The $7,000 annual fee is not optional maintenance - it keeps your protection active and ready to deploy when it matters.
Next Steps: Schedule a Confidential Consultation