How Nevis Foundations Compare to Panama and Cook Islands Structures

Nevis foundations differ from Panama and Cook Islands structures in terms of legal design, asset protection, and flexibility for estate planning.

This article explores how Nevis foundations stack up against Panama private interest foundations and Cook Islands trusts or LLCs, highlighting key differences that matter to expats and asset holders.

You’ll learn about:

• What is a Nevis foundation?
• Does Nevis foundation offer multiform flexibility?
• What are the advantages of a Nevis foundation?
• What is the difference between a Nevis LLC and a Cook Islands Trust?
• Is Panama foundation the same as Panama trust?
• Which should you choose among the Nevis, Panama, and Cook Islands structures?

My contact details are hello@adamfayed.com and WhatsApp ‪+44-7393-450-837 if you have any questions.

The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.

Nevis Foundation

A Nevis foundation is a hybrid legal entity created under the Nevis Multiform Foundation Ordinance, offering both corporate and trust-like features.

It is often used for:

• Asset protection
• Estate planning and succession
• Philanthropy
• Tax-neutral offshore structuring

Key features of a Nevis foundation include:

• Legal personality: Can own assets in its own name
• No shareholders or owners: Similar to a foundation in Panama
• Confidentiality: Minimal public disclosure
• Flexible governance: Managed by a foundation council or board
• Strong asset protection: Creditors must post a bond before initiating legal action
• Multiform flexibility: Can morph into a trust, LLC, or partnership structure

Compared to Panama, Nevis foundations offer stronger asset protection features (such as mandatory creditor bonds) and more flexible legal structuring.

Compared to the Cook Islands, they are more entity-based and less dependent on trustee discretion.

Here is a side-by-side comparison:

How do Nevis Foundations offer multiform flexibility?

Nevis foundations can take the form of a trust, LLC, partnership, or conventional foundation.

This allows high-net-worth individuals to customize their structure based on evolving needs, such as tax strategy, regulatory compliance, or succession goals.

Unlike traditional foundations, a Nevis multiform foundation can transform over time without needing to dissolve and re-establish a new entity.

What are the benefits of a Nevis trust?

Benefits of setting up a Nevis trust include:

• Strong protection from foreign judgments
• Two-year statute of limitations for creditor claims
• Confidential structure with no public registry
• Ability to include trust protectors and reserve settlor powers
• Favorable tax treatment for non-residents

Compared to foundations, Nevis trusts offer more flexibility in terms of how assets are managed and distributed, particularly for family estate plans.

However, they lack the separate legal personality that a Nevis foundation provides.

How much does a Nevis trust cost?

A Nevis trust is generally more affordable than a Cook Islands trust:

• Initial setup: USD 2,000 to USD 5,000
• Annual maintenance: USD 2,000 to USD 4,000

Pricing depends on the complexity of the trust, use of protectors, and the number of parties involved.

This cost efficiency makes Nevis trusts a popular choice for clients seeking offshore asset protection without the high price tag of Cook Islands options.

What is the difference between a Cook Islands Trust and a Nevis LLC?

While a Nevis LLC is typically used for business or asset holding, the Cook Islands trust is more tailored to long-term estate planning and protection from lawsuits or creditors.

• Structure: A Cook Islands Trust is based on a legal relationship between a settlor, trustee, and beneficiaries. A Nevis LLC, on the other hand, is a limited liability company with members and managers.
• Legal Personality: The Cook Islands Trust does not have its own legal personality; the trustee holds legal title. A Nevis LLC is a separate legal person, capable of entering contracts and holding property in its own name.
• Parties Involved: Trusts involve a settlor, trustee, and beneficiaries. LLCs involve members (owners) and managers.
• Asset Protection: Cook Islands Trusts offer some of the world’s strongest asset protection from creditors. Nevis LLCs also offer strong protection, particularly through charging order limitations.
• Reporting Requirements: Both structures have minimal reporting obligations, especially when structured for non-resident use.
• Common Uses: Cook Islands Trusts are typically used for estate planning and long-term asset protection. Nevis LLCs are more often used to hold assets or operate offshore businesses.

How much does a Cook Islands Trust cost?

The cost of setting up a Cook Islands trust varies by service provider but typically includes:

• Initial setup: USD 12,000 to USD 25,000 (though some US based companies charge upwards of $40,000 to $100,000)
• Annual maintenance: USD 5,000 to USD 8,000

Factors that affect the cost include the complexity of the trust deed, number of beneficiaries, protector clauses, and any additional legal structuring.

Though more expensive than Nevis or Panama options, Cook Islands trusts are considered the gold standard for asset protection, particularly against foreign judgments and litigation.

What is the Cook Islands Trust Act?

The International Trust Act 1984 governs Cook Islands trusts.

It provides one of the strongest legal frameworks in the world for asset protection.

Key features include:

• Non-recognition of foreign judgments
• Strict confidentiality rules
• Short statute of limitations for creditor claims (as little as 1 year)
• Discretionary trust structures that allow flexibility in beneficiary distributions
• Trust protectors and reserved powers options for settlors

This act is why the Cook Islands consistently rank as a top-tier jurisdiction for asset protection.

Is a Panama Foundation a trust?

No. A Panama Private Interest Foundation is not legally a trust, although it shares some similarities.

Like a trust, it can be used for asset protection, estate planning, and managing wealth for beneficiaries.

However, unlike a trust, it is a separate legal entity without owners or shareholders.

The founder transfers assets to the foundation, and a council manages them according to the foundation charter and regulations.

This structure offers more independence than a trust, as the assets are owned by the foundation itself, not by the founder or beneficiaries.

Nevis Foundations vs Panama and Cook Islands Structures: Which Should You Choose?

Here’s a side-by-side comparison to help you evaluate the options:

• Choose Nevis if you want flexible structuring with strong asset protection and low disclosure.
• Choose Panama if you’re looking for a simple estate planning structure with legal personality and lower costs.
• Choose Cook Islands Foundation if you want maximum asset protection combined with legal personality and confidentiality.
• Choose Cook Islands Trust if your priority is lawsuit shielding and trustee-led asset protection without the need for legal personality.

Conclusion

Nevis foundations provide a versatile, protective, and cost-effective alternative to Panama foundations and Cook Islands trusts.

Each jurisdiction has strengths: Panama for simplicity, Cook Islands for bulletproof asset protection, and Nevis for structural flexibility and privacy.

Choosing the right one depends on your priorities—control, cost, privacy, or litigation risk—and with the right guidance, each can serve as a powerful tool in your global wealth strategy.

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Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.