Six new trusts have collaborated with Grayscale, including those for Chainlink and Tezos, two well-known cryptocurrency asset managers. Chainlink (LINK) and Tezos (XTZ) token-linked trusts have been added to Grayscale's list of trusts.
Delaware Trust Company, Grayscale's "statutory trustee," has recently established trusts for the company.
Basic Attention Token (BAT), Decentraland (MANA), Livepeer (LPT), and Filecoin (FILE) are the other four trusts (FIL). Except for the FIL trust, which was founded in October, all six trusts were established in December.
As CEO of Grayscale Investments, Michael Sonnenshein said to The Block, the trust formations do not imply that Grayscale will introduce these new products.
"Grayscale is constantly on the hunt for new methods to better serve the needs of its investors and customers. We do make reservation filings from time to time, but this does not guarantee that a product will be released to the market. Since Grayscale's inception, the company has and will continue to inform investors of the availability of new goods "in the words of Sonnenshein.
In the area of crypto asset management, Grayscale is the biggest player. Through its various products, it oversees more than $25 billion in assets. The company's bitcoin product, on the other hand, accounts for more than $21 billion in AUM.
What is Trust?
In a trust, a third person, known as the trustee, holds assets on behalf of a designated beneficiary or beneficiaries. It is up to the trustee to decide how and when the assets in a trust are distributed to the intended beneficiaries.
Beneficiaries of a trust may have quicker access to their assets than those of a deceased person's estate since trusts skip probate. A smaller amount of taxes may be required following your death if your estate is held in an irrevocable trust rather than a will.
Assets held in a trust can avoid probate, which saves time, court costs, and perhaps even estate taxes in the long term.
Trusts provide the following additional advantages:
Take charge of your financial situation. The terms of a trust can be defined carefully, allowing you to regulate when and to whom distributions can occur. Revocable trusts can also be set up such that trust funds can be accessed during your lifetime while you designate who will receive the trust's residual assets after your death, even if you have children from many marriages.
The preservation of your heirlooms and your legacy. If your trust is set up correctly, it can shield your assets from the creditors of your heirs or beneficiaries who aren't very good with money.
Savings on the probate process while maintaining personal privacy. Unlike probate, which is open to the public, a trust may allow assets to be transferred without going through the courts and so avoid the costs of court fees and taxes.
Including cryptocurrencies like Bitcoin and other Blockchain-based assets (like NFTs) in your estate plan should be a no-brainer. There are numerous stories of Bitcoin investors who leave behind a large fortune but no method for their loved ones to retrieve it. Without access to crypto accounts or wallets and passkeys, even the most technologically knowledgeable recipients are powerless.
Leaving bitcoin in a will, along with instructions on how your loved ones can access it, is one way to ensure that your assets will pass to them. Cryptocurrency can also be transferred by establishing a trust.
The use of trust has numerous advantages. A trust, for example, can help ensure that your cryptocurrency is not lost when you die.
Probate avoidance saves time and money for your beneficiaries.
A safe and secure way to store your cryptocurrency away from the prying eyes of scammers and hackers.
Relieves the responsibility of managing your Bitcoins from those who will inherit them.
Your loved ones will know about your cryptocurrency holdings if you store them in a trust.
Because the trust records the existence of your cryptocurrency, it is less likely that your cryptocurrency will be discovered after your death if it is placed in a trust. To put it another way, unlike other forms of property, cryptocurrencies cannot be easily tracked down. Your loved ones will have a tough time finding your will after your death because there is little to no paper trail for them to follow. They may never realize you have cryptocurrencies if they don't already know about them and how to use them.
A trust can help protect your bitcoin because it has a will and you've made plans for what will happen to your cryptocurrency after your death. When a successor trustee is appointed, he or she should be made aware of the existence of your cryptocurrency, where to find it, and how to access it. As a result, the likelihood of your bitcoin being lost in the event of your death is considerably reduced.
It's up to you whether or not you disclose the specifics of your cryptocurrency to your successor trustee (and who should receive it) in your trust document. You should instead write a separate document outlining exactly how to locate and access your cryptocurrency. Alternatively, you can leave this "access plan" for your successor trustee or whoever will be responsible for accessing your money or assets after your death.
Cryptocurrency Trusts Maintain the Privacy of Cryptocurrency.
Adding bitcoin to a trust allows you to keep your beneficiaries' and your information more private. During the probate procedure, a will is submitted to the court and may be made public. ' You may not be able to keep the information about your bitcoin private even if you left it in your will.
Large cryptocurrency holders will find this idea unpleasant. There would be an easier target for hackers and scammers if you make your cryptocurrency's details public.
Only your successor trustee needs to know about your cryptocurrencies, as trust documents aren't public records. This additional layer of privacy will assist you and your beneficiaries keep your Bitcoin safe.