Just a few critical years ago, you had the intelligence to understand the mechanics of Nakamoto consensus, the foresight to envision the growth of your cryptocurrency’s community, and the courage to act financially on your convictions. You’ve figured out a robust personal solution for self-custody and have avoided the many technical pitfalls that have trapped others along the way. But are you ready for the world outside of crypto?
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 an tax on asset transfers which applies in addition to capital gains and income taxes. 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 legacy “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.
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 “sherpa” service guiding early adopters to optimize the jurisdictional structure of their assets while building a cost-effective network of crypto-savvy attorneys, accountants, and fiduciaries.