Cryptocurrency and trusts/foundations

[Onassis]

Does anyone have any experience regarding holding crypto in a trust or a foundation?

There are not that many articles available online, but here are a few:

https://www.forbes.com/sites/forbes...imate-asset-protection-tools/?sh=deed65078069
https://freemanlaw.com/asset-protection-trusts-for-cryptocurrency-and-digital-assets/
https://www.withersworldwide.com/en...stees-powers-obligations-and-responsibilities
https://www.evercorewealthandtrust.com/protecting-cryptocurrency-trusts/

Last edited: May 11, 2023

 

[Gediminas]

Hey,

Trust or foundation can own crypto assets and all basic principles are the same as owning any other assets by trust of foundation. Generally set up model mainly depends on the tax residency country of the UBO.

In most countries, if the foundation is revocable and non-discretionary (i.e. beneficiaries can manage the foundation) ”“ it becomes tax transparent. The same “transparency” might be applied to legal claims.

Of course, all depends on nationalities, circumstances, and purpose, but generally discretionary and irrevocable foundation with proper structuring in the country which is not part of the Lugano convention (relevant for legal claims) works well for significant size asset management. It allows to distance a person from the assets, protects privacy, taxes on capital gains doesn't apply, and protects assets from legal claims.

A properly done structure is rather expensive to set up and maintain.

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[Onassis]

Gediminas said:
but generally discretionary and irrevocable foundation with proper structuring in the country which is not part of the Lugano convention (relevant for legal claims)
Click to expand...

Could a councillor who is resident of a country part of the Lugano convention potentially pose a risk to the foundation? What if there is a protector with veto powers who is resident offshore?