OUR SERVICES
Home > > Comparison of Cook Islands and BVI Trusts
COMPARISON: COOK ISLANDS (CI) V. BRITISH VIRGIN ISLANDS (BVI)
Comparison Cook Islands British Virgin Islands
Perpetuity period Perpetual 360 years
Settlor residency requirement None None
Beneficiary residency requirement The beneficiaries must at all times be non-resident. None
Reservation of Investment Powers by the Settlor The trustee may be the director or one of the directors of the underlying company. The Settlor can reserve part of powers of investment or asset management functions under the trust. For BVI Standard Trust, the trustee may be the director or one of the directors of the underlying company. The Settlor can reserve part of powers of investment or asset management functions under the trust. For BVI VISTA Trust, the trustee is prohibited from directly interfering in the management of an underlying company. The Settlor or the person designated by the Settloras the director of the underlying company will be in charge of its management.
Rule in Saundersv Vautier(All beneficiaries, if they are adults and of sound mind, may request the trustee to end the trust and distribute the trust assets ) None For BVI Standard Trust, the rule applies. For BVI VISTA Trust: application of this rule may be suspended for up to 20 years.
Control of Influence by the Settlors of the Trustee’s Exercise of Power Influence possible through therole of protector and reserved powers Influence possible through the role of protector and reserved powers
Disclosure Requirements at Establishment Upon registration of the trust in the CI:

  • name of the trust
  • date of the trust agreement, and
  • the name of the trustee must be disclosed to the Registrar of international trusts.
 None
Tax Position
  1. No taxation of the Trust inthe Cook Islands.
  2. No stamp duty requirements attach to the trust agreement.
  3. Registration and annual registration required.

 
  1. No taxation of the Trust in the BVI.
  2. USD 200.00 stamp duty required for all BVI trust agreements (including those that change to the law of the BVI from another jurisdiction)

 
Transfer tax on transfer of assets into Trust None None

 

Contact us to discuss on the Cook Islands Trust.