Trusts: A medieval legal construct to protect 21st century digital assets
Many of us in crypto have digital assets scattered in various wallets, some held in personal name, some amalgamated in a holding entity, mixed with all kinds of other assets.
However, even when held in name of such holding entity, assets are not genuinely immunized against creditors, lawsuits, divorces, the government, or plain bad luck.
Trusts are first and foremost a way to protect your assets: based on the force of centuries of legal precedent and the flexibility of common law, Asset Protection Trusts, the focus of this issue of The Otonomist, are the pre-eminent structure to protect your assets.
Part I - Basic concept and typical trust stack
In this first part, we explain the basic concept of a trust and share a typical trust stack and the various parties and entities involved : the trust itself, the trustee, and the beneficiaries.
We show how a trust, if properly set up, can still provide anonymous title to property and legally ring-fences your assets by leaving them disconnected.
Part II - Dissecting the trust agreement clause by clause ($)
In this premium contents part, we share an editable, downloadable and fully annotated version of a typical trust instrument, the document that effectively allows you - in certain jurisdictions - to unilaterally settle a trust.
We also share the standard operating agreement for the trustee entity and a template asset pledge letter.
Part III - Use cases: How to make a trust work for you
In this third part, we discuss some common use cases for trusts with both US and non-US assets, with a focus on Web3 users.
We will see that the trust construct, with its roots in medieval times, is eminently suitable for holding 21st Century digital assets, especially self-custodied ones.
Part IV - Where to settle a trust if you're from the U.S. or from abroad
Part IV then focuses on a major offshore trust stack, the so-called VISTA trust in the British Virgin Islands.
Similar to Wyoming and some of the other US trust locations, the BVI VISTA trust offers a way for the settlor of a trust to also be the owner of the trustee, allowing you full control over the assets held in trust.
However, the VISTA trust also has some restrictions and in our conclusion, we share some of the inside on why, even if you are not a US resident, a US trust may ultimately be a better option for you than an offshore trust.
> Let Otonomos guide you towards the right entity kit for your needs. Book a FREE 30-mins call with our Americas, Europe or Asia desk today!
DEVELOPMENT UPDATE
Get an EIN and US mailing address from within your Otonomos dashboard, marvel at our stunning invoices, and log in without friction
We kept the pace at our dev desk in October with three new features:
- EIN and Texas or Miami mailing address
You can now fill out and submit your application for a US Employer Identification Number straight from within your Otonomos dashboard.
Just fill out the required fields and our software completes the form and sends it off. US clients with an SSN get their EIN quasi instantly, for international clients we managed to compress the issuance to an average of 2 weeks.
An EIN is required i.a. when you want to open a bank account in the US. You will need to provide a contact and a mail address, and we now have the option to choose between a Miami or Texas address, with San Francisco to follow.
- Good looking invoices
Paying an invoice is not typically a delight, except when the invoice just looks stunning!
We have a theory that good looking invoices get paid faster, so order online from Otonomos now to get to see one!
- Easier login
Feedback from users prompted us to review how you log in to the Otonomos Dashboard with your registered email.
Equally secure as before but just easier, you now simply get an authentication code emailed to you to access all your entities in one place.
If you're using a new device, an extra authentication link will first be emailed.
> Access your dashboard today to see all your entities in one place, order new ones or add services. All payable in crypto as well as card!
