Crypto Asset Protection FAQs

Will the crypto asset protection prevent my assets from being seized or attached?

As long as you follow the funding instructions we provide, your crypto assets are protected from any attempt to collect by any creditors and other third parties. 

Is Crypto Asset Protection legal?

Yes. We use legal structures and available laws that are available to everyone. There are two systems of crypto asset protection: one for the informed, and one for the uninformed.

How long does it take for my crypto assets to be protected?

With our structures, your crypto assets are protected immediately. There is a 2-year vesting period for a Nevada Domestic Asset Protection Trust. But if combined with domestic and offshore LLCs, you have immediate asset protection.

When does the two-year period end?

Here’s a nice touch under Nevada law: The pertinent date is not when a liability occurs, such as an accident for which you’re at fault, but when a complaint is filed for the accident. Since there is always a lag in time between a liability occurring and being sued over that liability, in practice, it’s less than two-years before you’re out of the woods. For example, if you’re at fault in an accident 18 months after you’ve set up your asset protection trust and have transferred your assets into it and get sued 12 months later. Are you safe? Yes, the complaint was filed six months after the two-year window closed and your assets are completely protected!

What is a domestic asset protection trust?

It is a legal trust in the US in which you can be the trustee and beneficiary. You maintain 100% control, use, and benefit of all trust assets during your life. After 2 years of your contribution of your crypto to the trust, no creditor or third party can ever attach or seize your cryptocurrencies.

Why set up a Nevada Asset Protection Trust as opposed to an asset protection trust in another state?

Nevada is recognized as having the strongest and best asset protection laws in the country, ranking above Delaware, Alaska and South Dakota as the next runners up. The Nevada statutes for asset protection trusts were enacted in 1999 and are tried and true.

I have a revocable living trust that owns my crypto. Does my revocable living trust provide asset protection?

Unfortunately a revocable living trust offers ZERO asset protection. A revocable trust is simply a will substitute which can avoid probate and control how your assets are distributed upon your demise, but has no asset protection benefits during your life.

Why is a domestic asset protection trust irrevocable?

An irrevocable trust is a good thing. In order to achieve the amazing asset protection features of the trust, state law requires that it be irrevocable. Our structures still allow you to be in control even though the trust is irrevocable.

I’m not a resident of Nevada, can I still create a Nevada Domestic Asset Protection Trust?

Yes. One of the requirements is that you name a Nevada trustee for your trust, which has very limited powers over your trust. Your Nevada trustee has no access to nor control over any of your assets held in trust. We give this person the minimum touches under Nevada law to give Nevada jurisdiction. You can remove and replace your Nevada trustee at any time. We offer a Nevada trustee for every client, and the first year fee is included in our price. The annual fee thereafter is $300. This fee is waived when you sign up for the annual trustee training platform.

Do I need to obtain a Federal Employer Identification Number (EIN) for my domestic asset protection trust?

It’s not necessary, but it’s recommended. Your trust is established as a grantor trust, and you can use your SSN if you ever need it to establish any bank account for your trust. We recommend obtaining a new EIN for your trust to maintain separate identities and to preserve the privacy of your SSN.

If I get an EIN for my trust, will I need to file a tax return for my trust?

No. As a grantor trust, you can still simply report all income directly on your individual income tax return.

Since the trust is irrevocable, can I change the beneficiaries or trustees?

Yes. We provide you with language in the trust to make any necessary revisions to your trust. You can buy and sell assets anytime you like with no restrictions. You can remove and replace trustees whenever you like. You can change the beneficiaries whenever you like. You don’t lose any control over your trust.

What if I already have a living trust?

Does the asset protection trust replace my living trust? No. Your estate planning done through your living trust is still valid. We can direct that the assets held in your Nevada asset protection trust pass pursuant to the provisions of your living trust when you pass away.

Does a limited liability company (LLC) offer asset protection against creditors?

If formed and managed correctly, an LLC is an excellent entity to hold your crypto assets. In the best jurisdictions, the ownership and assets of the LLC cannot be disclosed, and a creditor cannot force the sale, distribution, or liquidation of your cryptocurrencies.

Why do I need an asset protection trust if my LLCs will protect my crypto assets immediately?

An asset protection trust provides the strongest asset protection available in the US, even stronger than LLCs. There is an advantage of “layering” your asset protection to provide for the best asset protection immediately with your LLCs and the strongest asset protection available with your Nevada asset protection trust after two years. Not only is your Nevada asset protection trust much stronger than your LLCs after it’s seasoned, it is also much broader in scope.  The trust can own your home, savings, investments, businesses, rental properties and any other assets that you’d like to protect in addition to your crypto assets.

Is it difficult to transfer my crypto assets into my trust?

No. It’s simply a matter of changing the title on the asset from your name to you as trustee of your trust. We also provide an additional layer of protection using LLCs to own your crypto and manage your private keys.

Can’t I just purchase a cyber insurance policy to cover my cryptocurrencies?

Good luck finding an insurer with a policy designed for your crypto holdings or an insurer willing to cover your claim. Insurers hate paying out on filed claims. Also, insurance acts as a lightning rod for bad guys. If they think you have deep pockets or insurance, it’s likely you may become a target.

How do I avoid being sued or becoming a target?

You use our structures to legally appear that your crypto holdings are judgment proof.

If I transfer my crypto offshore, my crypto is protected, right?

Not exactly. If not structured properly, you have to give up control of your crypto to an offshore entity or third party custodian. This compromises control and increases your costs. Also, you may have to report your crypto holdings outside the US under current or future FBAR and FATCA reporting requirements.

What are the tax consequences of your crypto asset protection strategies?

None. We use structures that minimize tax consequences, and even provide better tax situations for your crypto holdings.

Do I need to file an income tax return for my Nevada asset protection trust?

No. We set up your asset protection trust as a “grantor trust”, meaning that it’s tax neutral—it neither helps nor hurts. The IRS treats the trust for income and estate tax purposes as if the trust didn’t exist. You report all income generated on trust assets directly on your personal income tax return as if the trust didn’t exist. The trust is 100% effective for asset protection, yet it has no adverse effects for taxes.

Do you offer payment plans?

We are willing to provide payment plans – let’s discuss during your initial consultation. We require a deposit of one-half of our fees when you engage our services, and the remaining fees and costs are due immediately upon receipt of the final invoice and delivery of your documents.

Do you store my documents?

We store online versions of your documents in your client portal using the most secure storage policies and encryption methods. We will delete any of your files upon request.

Do you request access to my crypto holdings?

Never. We believe it’s your crypto. We never request or obtain access to your private keys, passwords, or other logins for any of your cryptocurrencies.