Crypto Assets
Digital assets – ignition material in estate planning

Digital assets are increasingly becoming a fixed portfolio component of a demanding international clientele. In terms of effective estate planning, however, digital assets still lead a wallflower existence today.

July 11, 2022

Estate planning that is not implemented is pointless. Not planning one's estate at all is ruthless – wrong and (often) disastrous, especially in the case of digital assets.  

 

«Social media and email accounts and associated privacy and data protection rights are one thing. Large tech companies are based abroad, so it is not easy for private individuals to know how inheritance law works», explains Dimitar Jauch, CEO at Leo Trust Switzerland. «The other thing is digital assets, such as coins and tokens. If you fail to integrate your digital assets into your estate planning, you make it unnecessarily, if not impossibly, difficult for your heirs.»

Ownership, rights of disposal

In the case of cryptos, to stay with the example, ownership is documented in a decentralised register (blockchain). Thus, there is no central provider where heirs can exercise their right of disposal. Problems like these can be avoided, however, if heirs have the corresponding login data, i.e. private keys to non-custodial wallets.

 

In other words, to prevent access to cryptos from being lost upon death, it is essential that the testator specify in a testamentary disposition which cryptos exist, how they are managed – and how their «crypto assets inventory» can be accessed. In addition, concrete instructions on how to deal with digital data are helpful. Of course, it is even better if digital assets are already included in the estate planning.

 

Estate planning with digital assets becomes no less tricky in the event of incapacity. «An incapacity does not necessarily have to be preceded by a long illness. An accident is enough and suddenly a person is incapable of judgement», explains Dimitar Jauch and adds the question: «What do you do if no one can remember the passwords?»

Leo Trust and the pioneering role

Digital assets have long since ceased to be a fad, but are increasingly becoming an integral part of the portfolios of a demanding international clientele. «Settlement, separation, inventory, valuation, taxes, governance, donation, provision, informing all stakeholders – everything that has to be considered in effective estate planning is often underestimated. Or the necessary experience is simply lacking», says expert Dimitar Jauch.

 

Leo Trust is a pioneer in the field of digital assets and has built up valuable know-how over the past years. CEO Dimitar Jauch says: «Trusts and foundations are classic instruments in forward-looking wealth and estate planning. Leo Trust is among the first to fuse these same classic options with digital assets.»

 

It is an exclusive service that is not only gladly taken up, but more and more!

Do you have any inquiries? Dimitar Jauch, Chief Executive Officer, will provide you with the information you need.

This article is aimed at providing a general overview and summary of the issue. It is non-binding, and does not and should not be taken to constitute legal advice.

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