Whether you are appointed as a trustee of your own trust or someone else’s trust, you are now entrusted with certain roles and obligations concerning the crypto assets owned by the trust. Among these roles and obligations is the responsibility to manage the trust assets and communicate with the trust beneficiaries.
Understand the Trust Agreement
It’s important to read the trust document and understand the agreement. Failure to do so could lead to personal liability if fiduciary duties to trust beneficiaries are breached. As a start, you will need to understand the difference between principal and income and how to allocate those items in the administration of the trust, including the preparation of trust account statements.
Trust Beneficiaries
In administering the trust, you need to be aware of monthly, quarterly, and annual distribution requirements to the beneficiaries. Additionally, the crypto investments should be prudent and take into account the needs and obligations of the current and future beneficiaries of the trust.
Trustee Responsibilities
As a trustee, you need to hire a competent tax accountant familiar with crypto tax requirements. You must report the trust’s cryptocurrency activities. As the appointed trustee, the settlor of the trust has given you a vote of confidence and has deemed you trustworthy to administer the trust. Honor the trust and its beneficiaries. Protect the crypto assets within the trust as though they are your own. We can assist you with any questions you have along the way. If you prefer to use a third party trustee, our crypto trustee platform will be available soon for direct access to the best-in-class third party crypto trustees and their services.