How the Ultra-Wealthy Protect Their Assets: DIFC Foundations vs. Cook Islands Trusts

By Eva Maria Kullmann, Chairwoman of Ancova Capital Management, and Enis Sljivo, Managing Partner of Ancova Associates

DUBAI, UAE / ACCESS Newswire / March 14, 2025 /For many high-net-worth individuals, setting up an offshore company in jurisdictions like the British Virgin Islands (BVI) or a UAE free zone is often seen as a solid asset protection strategy. However, seasoned investors and wealth managers know that these structures alone do not offer real protection.

According to Eva Maria Kullmann, Chairwoman of Ancova Capital Management, asset protection requires more than just offshore registration, it demands strategic legal structuring. The world 's wealthiest individuals rely on advanced frameworks like DIFC Foundations in Dubai and Cook Islands Trusts, which provide stronger safeguards against lawsuits, creditors, and regulatory risks.

"If you 're only using a basic offshore company, you 're exposing your wealth to unnecessary risk.

The key is structuring assets in a way that legally separates ownership while keeping control," explains Enis Sljivo, Managing Partner at Ancova Associates.

With financial regulations tightening and lawsuits becoming more common, understanding the advantages of DIFC Foundations and Cook Islands Trusts is essential for anyone serious about long-term wealth preservation.

Why DIFC Foundations and Cook Islands Trusts Offer Stronger Protection

A traditional offshore company remains directly linked to its owner. If legal claims arise, assets can be frozen, seized, or heavily taxed. By contrast, structures like DIFC Foundations and Cook Islands Trusts create a legal separation between individuals and their holdings.

• DIFC Foundations allow assets to be held under a legally independent entity, shielding them from personal liability.

• Cook Islands Trusts provide one of the world 's strongest legal defenses against lawsuits and creditor claims.

• Both structures help with succession planning, preventing probate disputes and inheritance issues.

• Assets held under these structures can benefit from tax efficiency, depending on jurisdictional regulations.

"For those serious about protecting generational wealth, the right legal framework makes all the difference," says Eva Maria Kullmann.

DIFC Foundations: A Secure Wealth Holding Structure

Dubai 's DIFC (Dubai International Financial Centre) Foundations are becoming an increasingly popular asset protection tool for investors. With a robust legal framework based on common law principles, a DIFC Foundation provides a high level of security for financial and non-financial assets.

Key Advantages of DIFC Foundations

• 0% tax on all holdings and earnings, making it a tax-efficient structure.

• Legally owns assets, preventing direct ownership risks.

• Recognized under UAE and international common law, ensuring broad legal credibility.

• Helps bypass probate and forced heirship laws, simplifying wealth transfer.

Assets That Can Be Held Under a DIFC Foundation

• Business shares and corporate holdings

• Dubai and international real estate

• Financial securities, including stocks, bonds, and investment funds

• Intellectual property rights

• Cash and bank deposits

A DIFC Foundation can also hold ownership of a UAE company, providing a structured approach to managing investments across multiple jurisdictions.

"Wealthy families, financial institutions, and corporate investors are increasingly structuring assets through DIFC Foundations to benefit from Dubai 's stable and tax-friendly environment," notes Enis Sljivo.

Cook Islands Trusts: An International Shield for Wealth Protection

While DIFC Foundations offer strong asset protection, Cook Islands Trusts are widely regarded as one of the most secure legal structures available. Located in the Cook Islands, a jurisdiction known for its strong asset protection laws, these trusts provide a nearly impenetrable barrier against lawsuits and creditor claims.

Why Cook Islands Trusts Stand Out

• Lawsuit-resistant - Any legal claims must be filed in the Cook Islands, where foreign court rulings are not recognized.

• Strict time limits for creditors - If assets have been transferred into the trust for more than two years, legal claims against them are automatically barred.

• Global asset protection - Can hold assets such as real estate, bank accounts, stocks, and private businesses.

• Privacy and confidentiality - Trust structures are not publicly registered, ensuring discretion.

"A Cook Islands Trust is one of the strongest defensive strategies available for protecting wealth against legal claims," says Eva Maria Kullmann.

Combining DIFC Foundations and Cook Islands Trusts for Maximum Security

While DIFC Foundations and Cook Islands Trusts each offer strong benefits, the real advantage comes from using them together. Many sophisticated investors and corporate entities employ a layered approach to wealth protection, ensuring both tax efficiency and legal security.

How a Combined Structure Works

• A DIFC Foundation holds a UAE-based company that owns assets.

• The foundation manages global investments, such as Dubai real estate, foreign stocks, or business holdings.

• Instead of direct ownership, the DIFC Foundation is structured with a Cook Islands Trust in the background.

• The Cook Islands Trust serves as a legal firewall, making it nearly impossible for lawsuits or creditors to penetrate the structure.

If a legal challenge arises, this multi-layered structure ensures that:

• The foundation, not an individual, owns the assets.

• The Cook Islands Trust provides an additional layer of legal protection.

• Even in case of disputes, assets remain shielded under international law.

"The DIFC Foundation and Cook Islands Trust combination offers a structured, compliant, and highly effective asset protection strategy," explains Enis Sljivo.

Tax Efficiency Without Compromise

A common concern about offshore structures is whether they attract additional taxation. However, both DIFC Foundations and Cook Islands Trusts offer strong tax efficiency when structured correctly.

• DIFC Foundations pay 0% tax on corporate and investment earnings.

• Cook Islands Trusts are tax-neutral, with no local taxation on foreign assets.

• A UAE company owned by a DIFC Foundation benefits from 0% corporate tax on foreign income.

• Dividends and distributions can be structured in a way that minimizes tax exposure.

"For international investors looking for tax-efficient wealth preservation, the DIFC Foundation is becoming a top choice," says Eva Maria Kullmann.

Why Asset Protection Strategies Are Becoming More Critical

With global financial regulations tightening, offshore banking restrictions increasing, and lawsuits on the rise, wealth structuring has become more than just a strategy, it is a necessity.

"The best time to create an asset protection structure was years ago. The second-best time is today," advises Enis Sljivo.

For those serious about securing their wealth, understanding the role of DIFC Foundations and Cook Islands Trusts is essential.

About Ancova Capital Management

Ancova Capital Management is a leading advisory firm specializing in offshore wealth structuring, investment management, and luxury real estate. With expertise in DIFC Foundations, Cook Islands Trusts, and global tax optimization, Ancova Ancova Capital Management provides strategic wealth solutions for high-net-worth individuals and corporations.

Media Contact:

Contact Person: Maureen Manlugon,
Title: Operations Manager
Email: mrm@ancovacapital.com

SOURCE: Ancova Capital Management

View the original press release on ACCESS Newswire

© 2025 ACCESS Newswire. All Rights Reserved.