US demand fuels record growth in Cook Islands trusts

US clients are driving a sharp rise in Cook Islands international trust registrations, with new trusts up almost 90% from two years ago and the sector adding jobs and revenue. The growth is strengthening a tourism-reliant economy and creating demand for more legal, compliance and technology talent.

Why it matters: - US demand for asset protection is making the Cook Islands financial services sector a bigger part of the economy. - Financial and insurance services contributed more than NZ$48 million in 2024/25, up from NZ$38 million in 2019/20. - The sector now accounts for 8.5% of real GDP, compared with 8.3% the year before. - The expansion is helping diversify an economy that has relied heavily on tourism. - The growth model is higher-value and lower-environmental-impact than visitor-dependent industries.

What happened: - New international trust registrations in the Cook Islands were up 42% in the past year to a record 433. - Registrations are now almost 90% above the level recorded two years ago. - Roughly 85% of licensed trustee company revenue comes from US clients, mainly through asset protection structures. - A new Cook Islands Government report captured the registration and revenue trends. - Industry experts link the surge to concern among US business owners and professionals about litigation, professional liability and broader commercial risks.

The details: - The Cook Islands has had asset protection trust legislation for more than four decades. - Individual providers administer billions of dollars in client assets through international trust structures. - Southpac Group, a Tauranga-based firm focused on international asset protection and trust administration, reports about US$4 billion under administration across its international operations. - Southpac Group CEO Mike Arand said the United States has driven much of the sector’s recent growth and remains its most important market. - Southpac Group lawyer and director of business development Matthew Smith said more business owners and professionals are treating asset protection as part of risk-management and succession planning. - Smith said the industry needs more specialist people, compliance systems and technology as structures become more numerous and complex. - The number of established roles across the wider financial sector rose from 257 in 2020 to 325 in 2025, an increase of 68 roles or about 26%. - The sector currently has 299 filled positions. - Dozens of roles remain vacant across legal, accounting, trust administration, compliance and technology. - Financial services contribute more than twice as much to the Cook Islands economy as agriculture, fishing and construction combined. - The sector can operate remotely during disruptions to international travel. - New Zealand lawyers, accountants and compliance specialists could benefit from the demand because of the close relationship between the two countries and a shortage of specialist workers in the Cook Islands. - Southpac combines trustee operations in the Cook Islands and Nevis with group oversight and support from Auckland. - The Cook Islands is self-governing in free association with New Zealand, uses the New Zealand dollar and its people hold New Zealand citizenship. - New Zealand has a larger Cook Islands population than the islands themselves, which could provide a pool of professionals to return home, work remotely or support firms from New Zealand.

Between the lines: - The Cook Islands is trying to turn a niche legal advantage into a broader services economy. - The data suggest demand is coming not just from trust registrations, but from the surrounding ecosystem of compliance, identity verification, cybersecurity, payments and regulation. - Smith and Arand both frame the next challenge as capacity, not demand. - The sector’s credibility appears tied to its long legal track record and its appeal to US advisers seeking non-US structures. - The growth also creates a talent bottleneck that could pull in more professionals from New Zealand and encourage fintech and regtech firms to enter the market. - Asset protection trusts are intended for lawful planning before claims or disputes arise and do not override tax, criminal, insolvency or disclosure obligations.

What's next: - The Cook Islands industry is expected to keep investing in specialist staff, compliance systems and technology. - Future growth will likely depend on attracting more technology, expertise and investment to the islands. - Industry watchers expect more opportunity for fintech and regulatory-technology firms serving trust administration and international client servicing. - New Zealand may become a deeper source of skills and support for the sector. - The next phase is likely to be about scaling infrastructure and workforce capacity as much as adding new trusts.

The bottom line: - US demand is turning Cook Islands trusts into a faster-growing export industry, but the sector’s next constraint may be skilled labor and infrastructure, not client interest.