Michael B. Nelson

International Protector Services Ltd., IPS was created from the demands of clients, trust companies, attorneys and financial professional looking for learned and experienced representation in  reformation of trusts to protect from attacks both internally by trustee(s) and externally by creditors, beneficiaries and unknown claimants.  

“We are the only exclusive protector entity within the Cook Islands”, said Michael B. Nelson, principal. “We do not act as trustees, settlors, administrators, lawyers or accountants.  We only focus on the relation between the trust and the protector without the inherent conflicts of also acting in other capacities in the trust.  Our duties of loyalty and trust remains within the trust deed or private foundation instrument itself.

“In planning a trust or private foundation, it is a distinct advantage to retain the services of an offshore protection company outside the jurisdiction of United States courts.  We offer full protector services in trust administration, trust protection litigation, and the asset security.”

IPS was the first advocate of pet trust legislation in the Cook Islands and continues to represent pet trusts and also private pet foundations as the protector.  The firm provides (1) privacy from beneficiaries of a will or trust who may not agree with the pet owner’s intention after death or best use of the decedent’s estate (2) court challenge of the pet trust or foundation being overly funded for the life and/or benefit of the intended pet and (3) privacy from the public to protect the pet from theft, harm or ransom.

Mr Nelson explained that almost any international trust or private foundation requires a qualified protector in the unique judicial location of the Cook Islands. He stated that this “allows the protector to continue to represent the interests of the true settlor, grantor or founding member of the private foundation without being brought into the expensive and time-consuming court proceedings while continuing to accommodate changes in beneficiary circumstances and oversee the actions of the trustee or foundation members and advisors.”

He added that each client’s wishes are different and the applicable jurisdictions also vary. The firm has worked with over 85 different jurisdictions during the last 40 years.

“Many jurisdictions now have far-reaching laws that give them tax rights over people who inherit property from another country or where the deceased or the heir were/are resident, domiciled or hold nationality in another jurisdiction”, he elaborated. “We are very experienced with all aspects of the benefits and burdens of these treaties and welcome the opportunity to work with the client representatives to protect the assets of the trust or foundation.”

Discussing recent events with significance for trusts and estates, Mr Nelson highlighted three issues: cross-border inheritance tax obstacles within the European Commission; increased revenue demands of the new US administration from costs of foreign wars and loss of domestic jobs; and Brexit’s ramifications on property values, financial commitments, currency valuations and the ability to accumulate wealth. He stated that that all three issues require challenging planning.

Finally, Mr Nelson stated that “as people and capital become increasingly mobile, the number of international inheritance disputes is on the rise.”