In January 2020, only 4% of Brits had personally invested in cryptocurrency. By August 2022, this figure had risen to just over 10%, according to YouGov. It’s clear from this that cryptocurrency usage is only in its infancy, but its potential continues to dominate headlines.
If you have invested in cryptocurrency, or even plan to invest in crypto, have you planned how you’re going to protect and pass on your crypto assets to the next generation?
Cryptocurrency assets are often considered less ‘safe’ than traditional assets, which means you’ll want to ensure you’re taking the right steps in protecting it. Crypto is often famed for its anonymity, but the truth is, cryptocurrency is viewed as personal property, and could be seized in the same way as a house, supercar or yacht.
The best way to protect your crypto assets is to set up an asset protection trust. Asset protection trusts are a form of life interest trust but overlap with trust wills as the trust will be named in your will. The cost of setting up lifetime trusts depends on the complexity and value of the assets you want to transfer into the trust alongside the tax liability of the assets.
With an asset protection trust, probate is no longer necessary, so the administration of the assets can be dealt with quickly. Having a trust may also have tax advantages, including an inheritance tax exemption if the value is below the threshold. This is often more cost-effective than gifting assets.
If you’re ready to ensure your crypto assets are protected, get in touch with us today.