Crypto Tax Planning, Custody & Reporting Lawyers

How do I include digital assets in my Will?

Digital assets require more than a simple clause in a Will. A comprehensive Digital Asset Estate Plan is needed, which includes a separate, secure protocol for transferring access to private keys to your executor.

Is a seed phrase in a safe a sufficient estate plan?

No. This is a common and critical error. Without a formal legal plan and clear authority, your executor will be unable to legally access or distribute the assets, likely resulting in their permanent loss.

What is the most secure way to hold digital assets?

The most secure method is “institutional-grade custody,” which blends legal structures like trusts with technical solutions like multi-signature wallets. This creates a resilient system that is not dependent on a single individual or device.

How can a trust own digital assets?

A bespoke trust can be drafted to legally own digital assets. The trust deed must contain specific clauses authorising the trustee to hold this asset class and outlining the protocols for its secure management and custody.

How are digital asset transactions taxed?

Digital assets are typically treated as property for tax purposes, and transactions are subject to Capital Gains Tax. Complex activities like staking, airdrops, and DeFi lending have unique tax consequences that require expert analysis.

What happens if I lose my private keys?

If you lose your private keys, the assets are permanently and irretrievably lost. This is why a robust succession and custody plan, which is not dependent on a single point of failure, is absolutely critical.

How do I report income from DeFi or staking?

Income from staking and DeFi protocols is generally considered taxable income. The complexity lies in valuing these rewards and reporting them correctly, which requires specialised knowledge of current tax authority guidance.

Can my executor legally access my crypto?

Only if you have a specific, legally-binding plan that gives them the authority and the technical means to do so. Without this, an executor attempting to access your assets could be acting unlawfully.

Are digital assets legally considered property?

Yes, in most major jurisdictions, digital assets like cryptocurrencies are legally recognised as a form of property. This means they can be owned, transferred, and form part of a deceased estate.

How should a family office approach digital assets?

A family office must approach digital assets with an institutional framework. This requires a formal investment mandate, clear risk protocols, and a professional custody solution before any capital is deployed.

What is a “qualified custodian” for digital assets?

A qualified custodian is a regulated financial institution that securely stores digital assets on behalf of clients. They offer an institutional-grade alternative to self-custody for large, complex portfolios.

How do you prove ownership of assets in an estate?

Ownership is proven through control of the private keys. A key part of a Digital Asset Estate Plan is creating a secure and verifiable process for demonstrating this control to a court or tax authority.