You’ve already worked out technical asset protection through the secure management of your private keys — but what have you done to reduce your off-chain risk footprint? The reality is that wealth of any kind — either conventional or decentralized — can be targeted by others via lawsuit, regardless of the merit of their underlying claims. Between potential liability claims and property division demands from a future ex-spouse, are you prepared?
New layers of taxation can await the newly successful. For example, for U.S. taxpayers, the federal gift, estate, and generation-skipping tax is a tax on non-charitable asset transfers which applies in addition to capital gains tax and income tax. With the extreme volatility of crypto assets, the threshold trigger for these transfer taxes can be reached surprisingly quickly, even if seemingly distant today. Prescient early adopters who leverage the old-school smart contract framework of modern trust law can benefit from powerful and legally tax-minimizing options — options that can be significantly more effective if acted upon before the next crypto bull run.
Governments, both around the world and within the U.S., vary in their level of encouragement towards the new technology of decentralized digital scarcity. Early cryptocurrency adopters need to engage in a thorough cost-benefit analysis associated with their decision not to move. Sweetwater Digital Asset Consulting’s network and experience can help to ensure that your jurisdictional analysis is balanced and complete.
The vast majority of professionals involved with wealth management – including trust and estate planning attorneys, accountants, appraisers, tax attorneys, corporate trustees and fiduciaries, financial advisors, and retirement planning specialists – are generally unaware of the unique circumstances and needs of early crypto adopters. Sweetwater Digital Asset Consulting constantly seeks out exceptional professionals in these fields who “get it” when it comes to decentralized digital assets – saving you time and money as you build your network of professional advisors.
Retaining Sweetwater Digital Asset Consulting, LLC gives early adopter clients access to a highly personalized and independent source of guidance, facilitating the goal of legal jurisdictional optimization while building a cost-effective network of crypto-savvy attorneys, accountants, and fiduciaries.