Who This Is For
A Crypto Special Purpose Trust (Revocable Living Trust) is suited for individuals and families who want digital assets managed securely and passed on without disruption. This structure is especially valuable for:
- Crypto holders seeking probate avoidance and seamless incapacity planning.
- Founders, traders, and long-term investors managing assets across multiple wallets, exchanges, or chains.
- Families coordinating multi-beneficiary access and governance (including co-trustees for couples or partners).
- Executors/trustees who need explicit, legally recognized on-chain authority.
Why Choose a Crypto Revocable Trust?
- Avoid Probate: Private, efficient transfers to beneficiaries—no public court process.
- Continuity & Flexibility: Successor trustees act immediately; co-trustees can manage together (e.g., spouses/partners).
- Enhanced Security: Option to custody assets with a licensed professional trust company (U.S. or Switzerland) using cold storage and multi-layer controls.
- Custody Choice: Self-custody, institutional custody, or a hybrid model—documented and enforceable.
- Built for Modern Portfolios: NFTs, DeFi, staking/validators, and exchange accounts are integrated with clear SOPs.
- Tax-Ready Records: Proper basis/lot tracking and reporting hygiene.
Note: A revocable trust is generally not asset-protective while revocable. Where creditor protection is a goal, complementary structures (LLCs/FLPs, DAPTs, or offshore trusts such as Cayman or Cook Islands) may be layered in.
Structure & Roles
Grantor/Settlor (you): Maintain control during life—fund, amend, or revoke at any time.
Trustee & Successor Trustees: Operate wallets/accounts under written policies; co-trustee options for couples, partners, or family offices.
Beneficiaries: Receive assets under your instructions, structured for clarity and fairness.
Trust Protector (optional): Limited oversight—can replace trustees or approve major changes.
Entities & Custodians: Trust-owned LLCs and/or licensed professional trust companies (U.S. or Switzerland) as appropriate.
Custody & Key Governance
Crypto wealth is only as secure as the system behind it. We establish clear frameworks so trustees know how to manage, safeguard, and transfer assets:
Self-Custody – Enterprise hardware/HSMs, air-gapped creation, sharded backups, device lifecycle policies.
Multi-Sig/MPC – Threshold approvals by risk tier, role separation (proposer/approver/deployer), scheduled/emergency signer rotations.
Institutional Custody – Onboarding with exchanges/custodians and/or licensed trust companies; Authorized-Party forms; whitelists, time-locks, and withdrawal limits; exportable histories for tax.
Hybrid – Tiered hot/warm/cold storage and monitoring for policy breaches.
Deliverables include a Key Ceremony Record, Access Matrix, Incident-Response Playbook, and Annual Review Checklist—so the plan works when it matters.
Integration with Broader Planning
A Crypto Revocable Trust fits naturally into comprehensive planning.
It aligns with wills, powers of attorney, marital agreements, insurance, and tax strategy; coordinates with LLCs/FLPs to separate hot vs. vault operations; and, for cross-border families, can be paired with offshore planning (e.g., Cayman or Cook Islands trusts) to address additional risk or jurisdictional needs.
Regular reviews keep governance current with technology, regulation, and family circumstances.
Timelines & Scope
- Typical timeline: 2–3 weeks for standard matters; 3–6 weeks if offshore custodians or cross-border elements are involved.
- Scope: Trust drafting, custodian/Authorized-Party coordination, funding/retitling support, governance documentation, and alignment with tax/compliance requirements.
Top 10 Questions About Crypto Special Purpose Trusts
1) What is a Crypto Special Purpose Trust?
A Revocable Living Trust adapted to digital assets. It centralizes wallets, exchange accounts, and NFTs under one legal structure with custody and succession rules.
2) How is it different from a will?
A will is public and goes through probate after death. A trust avoids probate and provides continuity during incapacity.
3) Does this protect against creditors?
Not while revocable. Consider LLCs/FLPs, DAPTs, or offshore trusts for asset-protection goals.
4) Can it include NFTs, DeFi, and staking?
Yes—scheduled and governed with custody, validator key, and marketplace policies.
5) How do trustees access wallets and exchanges?
Through custodian paperwork and exchange Authorized-Party forms; self-custody access is documented via key ceremonies and signer policies.
6) What if a private key or device is lost?
Follow the Incident-Response Playbook: recovery procedures, backups, and signer rotations.
7) How are taxes handled?
Most revocable trusts are grantor trusts—income/gains reported by the grantor; step-up in basis may apply at death (jurisdiction-dependent).
8) Can I change or revoke it?
Yes—terms, assets, and fiduciaries can be updated; the trust can be revoked during the grantor’s lifetime.
9) How often should it be reviewed?
At least annually, and upon major portfolio, family, or legal changes (often includes signer rotation, address audit, governance updates).
10) Can custody be in the U.S. or Switzerland?
Yes—assets may be custodied with a licensed professional trust company in the U.S. or Switzerland, depending on fit and onboarding.
Contact Us
Considering a Crypto Special Purpose Trust (Revocable Living Trust) to protect, manage, and transfer your digital assets?
Call (212) 457-9797 or email info@dilendorf.com.
Dilendorf Law Firm represents crypto clients nationwide. For clients with significant digital assets, our work combines traditional estate planning with institutional-grade custody options and crypto-specific governance—to safeguard wealth today and secure legacies for the future.
