As digital currencies like Bitcoin gain prominence, attorneys, financial advisors, and trustees must adeptly navigate the complexities of structured planning to manage, protect, and optimize these unconventional assets.
Bespoke’s Co-founder, Matt McClintock, demystifies estate planning for digital assets in this talk with BitDevs.
Here’s what the discussion covered…
The Benefits of Using Creative or Personal Names for Trusts
Using creative or personal names for trusts enhances privacy and security while adding a meaningful touch. By choosing a unique name—like a favorite landmark or character—you obscure your identity, protecting personal details from public records and reducing the risk of identity theft. This approach ensures confidentiality, making it harder for outsiders to connect the trust with your personal affairs. Additionally, a personal name adds significance to the trust, making the estate planning process more engaging and reflective of your values.
Understanding Revocable Living Trusts: Asset Protection and Tax Implications
A revocable living trust doesn’t offer asset protection from creditors or tax benefits. During your lifetime, creditors can access the trust’s assets since you control and can revoke it. Tax-wise, there are no advantages or detriments; assets remain part of your estate for tax purposes, and income or gains are reported on your personal tax return. The main benefitof a revocable living trust is efficient estate management. It helps avoid probate and allows for private, streamlined asset distribution and management in case of incapacity or death, ensuring a smoother transition of your estate.
Revocable Trust Structure: Protecting Assets for Spouse and Children
A revocable trust structure designed to protect assetsfor both your spouse and children allows your spouse to benefit from and manage the assets without full ownership, safeguarding against misuse. It also ensures that the assets remain in the trust and are available for your children if your spouse passes away first, avoiding disinheritance. Your spouse acts as trustee, balancing control with asset protection. This approach protects assets, supports your spouse, avoids probate, and simplifies transfer, with clear terms and effective family communication being key considerations.
Legal Limits on Trust Provisions
Drafting effective trust provisionsrequires balancing detailed instructions with legal and practical considerations. Legal limits include public policy restrictions that invalidate provisions based on religion, race, or illegal incentives, and adherence to the rule against perpetuities, which limits how long a trust can last.Practically, granting trustees broad discretion within clear guidelines helps them manage assets flexibly and adapt to unforeseen changes. Avoid overly complex provisions to prevent administrative difficulties and disputes. Collaborate with legal experts to ensure enforceability, communicate your intentions clearly to trustees and beneficiaries, and regularly review and update the trust to reflect evolving needs and circumstances.
Mechanical Transfer vs. Intentional Transfer
The key difference between mechanical and intentional asset transfers lies in the clarity and structure of the transfer process. Mechanical transfers, like handing over a vault combination without further instructions, can lead to uncertainty and unintended consequences. In contrast, intentional transfers involve detailed planning and legal structures, such as trusts, which ensure assets are managed, protected, and distributed according to the original owner’s wishes. Using trusts, clear instructions, and professional advice ensures assets are safeguarded, privacy is maintained, and tax implications are optimized, effectively achieving your estate planning goals.
Mastering Unconventional Asset Management
Structured planning for unconventional assets, like Bitcoin, requires a thoughtful and adaptive approach that integrates security, legal compliance, and asset management. By leveraging creative strategies—such as using personal names for trusts to enhance privacy or crafting intentional asset transfers through detailed estate planning—individuals can protect their assets while ensuring smooth transitions for future generations.
Whether dealing with digital currencies or more traditional assets, Bespoke is committed to help optimize estate planning and safeguarding your legacy.
Matt shares his professional background, highlighting his path and the experiences that shaped his approach to wealth management.
06:25 The Story of Bespoke Group
The founding and evolution of Bespoke Group, emphasizing the importance of tailor-made financial services.
15:00 How to Own VS Where to Own VS What to Own
Discussion on different aspects of ownership, focusing on strategic decision-making in wealth management.
16:55 How Estate Planning is an Act of Sovereignty
Framing estate planning as an exercise in personal sovereignty, offering control over one’s financial legacy.
20:00 The Flaws of Wills and Probate
Critique of traditional wills and probate processes, discussing common pitfalls and inefficiencies. Jacob shares a personal anecdote about the wills his late mother and father left behind.
21:50 Privatizing the Process
Why privatized methods to streamline estate management should not be overlooked.
25:45 Understand the Tax Law
Tax news and updates. Stay abreast to changes of the tax law that will affect current and future estate planning structures.
31:21 What Type of Impact Do You Want Your Wealth to Have?
Exploring the desired impact of wealth on future generations and society, stressing thoughtful planning.
37:54 Why Matt Hates the Word Estate Planning
Matt explains his aversion to the term “estate planning” and proposes a more holistic approach.
40:00 A Thoughtful Estate Plan is an Act of Love
Emphasizing that estate planning is an act of love and responsibility towards one’s family and legacy.
42:50 Where the Future of Money is Headed
Insight into the future of money, particularly the evolution of cryptocurrency and its implications.
46:40 Impact of Bitcoin’s Evolution
Discussion on how Bitcoin has emerged as a robust form of money and its role in modern financial systems.
54:02 Widening Delta Between Value of Assets and Value of Our Currency
Reflecting on the growing disparity between asset values and currency value, and its implications for financial planning.
Matt and Jacob underscore that estate planning and financial management are more than just technical exercises; they are about holistic life optimization and aligning financial strategies with personal values. They advocate for proactive and dynamic estate planning to ensure long-term well-being and effective wealth management.
We are witnessing remarkable advancements on secondary layers within the Bitcoin network. Bitcoin core developers are continually innovating to enhance the scalability and transaction capacity of the network, allowing it to perform a broader range of functions. These developments not only increase Bitcoin’s utility but also have the potential to significantly boost its value.
This blog post summarizes a recent talk our co-founder and executive managing director Matt McClintockshared with the Unchainedaudience. You can tune into the full video at the bottom of the page.
The Dynamics of Bitcoin Value
Predicting the spot price of Bitcoin in U.S. dollar terms remains a challenging endeavor. However, Michael Saylor’s assertion that “it goes up forever” captures a fundamental belief within the Bitcoin community: as Bitcoin’s network grows and its applications expand, its value is likely to increase. This upward trajectory is compounded by the depreciation of the U.S. dollar, which typically loses value at a rate of 2 to 8 percent per year. As Bitcoin appreciates and the dollar depreciates, the value gap between them continues to widen. This trend suggests that Bitcoin’s long-term value proposition remains robust. For the U.S. to fully leverage this potential, it might need to consider holding Bitcoin as part of its strategic economic reserves.
The Rise of Ideological Investing
Investors, especially the younger generations, are more inclined to align their investments with their personal values and worldviews. This trend is reflected in the growing interest in companies that demonstrate social responsibility, such as having women in the C-suite or implementing sustainable practices. Investors are now willing to prioritize ideological alignment over traditional financial metrics like alpha and beta.
At Bespoke Group, we help our clients uncover the deeper purpose behind their wealth. We explore questions such as: What does this wealth mean to you? How can it be used to express your values through investments and philanthropy? By addressing these questions, we guide our clients in making investment decisions that reflect their ideologies and contribute to a better world.
Planning for Transformative Wealth
Many individuals possess substantial Bitcoin wealth, which necessitates careful consideration of its implications for their families and communities. The case of Mircea Popescu, who allegedly held over a million Bitcoins and tragically drowned without clear succession plans, underscores the importance of strategic planning. Whether one owns 100, 1,000, or 10,000 Bitcoins, these assets represent transformative wealth that demands thoughtful succession and estate planning.
Bitcoiners, especially those who have weathered multiple market cycles and significant industry upheavals (such as the collapses of Three Arrows, Terra Luna, and FTX), often develop a mature and ideological perspective. They view Bitcoin not just as a store of value but as a revolutionary asset with the potential to transform their lives and the futures of their families. Structuring and managing this wealth strategically is crucial for its preservation and growth.
The Generational Shift and Social Upheaval
Our client base is largely composed of individuals younger than 50, reflecting a significant generational shift in attitudes towards wealth and investing. Younger generations, including Gen X and Millennials, are more ideologically driven compared to the Baby Boomers. They possess significant wealth, often accumulated through unconventional means like cryptocurrency investments, and are motivated by a desire to make a positive impact on the world.
This generational shift coincides with a period of significant social upheaval in the United States. The “Fourth Turning,” a concept popularized by William Strauss and Neil Howe, suggests that American society undergoes a major transformation every 80 to 100 years. We are currently in a crisis phase, characterized by societal reimagining and reorganization. This period of transformation is driving affluent individuals to align their wealth with their values, whether through investments, philanthropy, or family legacy planning.
The Role of Bitcoin ETFs
The introduction of Bitcoin ETFs has been a significant milestone, signaling growing acceptance of Bitcoin as a legitimate alternative asset class. While Bitcoin ETFs provide an easier access point for retail investors, there are concerns that they might simplify Bitcoin ownership to the point where investors miss out on understanding its deeper value. The influx of Bitcoin into ETFs could potentially centralize control, but the high HODL rates suggest that many Bitcoiners are committed to maintaining their holdings.
Global Strategies and Regulatory Risk
Navigating regulatory risks within the United States is a critical concern for many Bitcoin holders. At Bespoke Group, we help clients plan for these risks through global custodial relationships and structures, such as trusts in the Cook Islands or foundation companies in Switzerland. These structures can protect Bitcoin assets from regulatory reach while allowing clients to maintain control and benefit from their investments.
Our Approach at Bespoke Group
One of our specialities is sophisticated wealth management tailored for Bitcoin holders. We embrace a Bitcoin-centric ethos and understand the unique complexities and needs of our clients. Our approach is designed to balance traditional wealth management principles with the distinctive nature of Bitcoin assets.
We recognize that many Bitcoiners are ideological about their investments, especially those who have been involved for several years. These individuals often possess a long-term vision for their wealth, viewing it as a means to not only secure their own futures but also to make a positive impact on their families and communities. Our goal is to help these clients strategically plan for the future, ensuring that their Bitcoin wealth is managed and preserved in a way that aligns with their values and aspirations.
The following information is intended for general educational purposes only and should not be construed as legal or investment advice.
When it comes to financial planning, many people have diversified portfolios that include traditional assets like real estate, equities, and private equity. However, as the world of finance evolves, more people are incorporating cryptocurrency into their investment strategy. While digital assets offer exciting opportunities, they also present unique challenges, particularly in the realm of estate planning.
In this conversation, Bespoke’s Co-Founder Matt McClintock and Chief Investment Officer, Samara AlphaAdil Abdulali uncover just that. Tune into the full conversation and summary below.
The Importance of Access to Assets
Access to assets is crucial in any investment strategy, and cryptocurrency is no different. If you can’t access your crypto assets when you need them, you miss out on potential opportunities. As the market moves, so should your ability to respond and adapt.
IRS and Blockchain Awareness
Crypto investors must be aware of the increased scrutiny from the IRS and the federal government. The blockchain’s immutable ledger makes it easier for authorities to track transactions and ownership. As a result, the government is becoming more proficient at understanding how blockchains work and is effectively managing confiscated crypto assets.
Estate Planning with Cryptocurrency
When it comes to estate planning, crypto presents a unique set of challenges. While traditional assets can be easily transferred to heirs, digital assets require careful planning. Passing on your keys to someone else without proper documentation can lead to complications, including potential legal issues and tax liabilities.
For instance, if you leave crypto assets to your spouse or children, they may face challenges when trying to monetize the assets. They could encounter Know Your Customer (KYC) requirements, which may lead to questions about the source of the assets and potential tax implications.
The Risks of Negligence
Failing to report the transfer of crypto assets can result in penalties, interest, and even criminal fraud charges. It’s essential to treat digital assets with the same level of respect as other significant assets, such as real estate or private equity.
Founders and Crypto Wealth
Founders of new crypto protocols face additional challenges when it comes to estate planning. If your project gains traction and your tokens increase in value, it’s essential to plan accordingly. Estate planning should be part of the founder’s mental checklist, just like developing their project and managing the business.
Conclusion
As the world of finance continues to evolve, so too must our approach to estate planning. Crypto assets are real-world assets that hold significant value, and they require careful planning and consideration. By treating your digital assets with the same respect as traditional assets and planning for the future, you can ensure a smooth transfer of wealth and minimize potential legal and tax complications.
Incorporate estate planning into your overall financial strategy to protect your legacy and ensure your loved ones are well-prepared for the future.
Bespoke aims to highlight the importance of planning and foresight when it comes to dealing with cryptocurrency, as well as the potential complications that can arise without proper preparation.
This information is intended for general educational purposes only and should not be construed as legal or investment advice.
Debunking myths surrounding asset protection, tax strategies, and privacy safeguards; ditching the traditional hourly fee structure and opting instead for a more client friendly approach; viewing estate planning from the viewpoint of a Bitcoiner… These are a handful of dynamic perspectives you wouldn’t hear from your typical multi-family office, but you can count on hearing them from Bespoke Co-Founder Matt McClintock.
Your assets are nothing if you ignore the strategies necessary for their effectiveness, which can be measured by means of management and protection. This philosophy lies at the heart of our work, prioritizing the nuances of HOW and WHERE to own assets before delving into the specifics of WHAT to own, listen to what this looks like in practice and tune in here.
Unfortunately, in our field it is commonplace to put the cart in front of the horse. Plan for your wealth in the right order: employ creative jurisdictional strategies, identify optimal custodians, and lay a robust foundation for long-term wealth preservation and growth.
Matthew McClintock, Bespoke Group Founder and Executive Managing Director, joins Marty Bent, Jesse Myers (COO of Onramp), and Michael Tanguma (CEO) on On Ramp’s Podcast The Last Trade: The Bitcoin Heritage Blueprint with Matt McClintock. Tune in!
This information is intended for general educational purposes only and should not be construed as legal or investment advice.
Bitcoin holds power to improve America’s fiscal position, maintain global power, and solve economic issues. Tune into the discussion of Bitcoin’s role in addressing economic challenges faced by the government and society. Onramp’s podcast episode Multigenerational Security for Bitcoin with Matt McClintock touches on market headlines, the possibility of a Fed soft landing, and challenges in the bond market, oil, gold, inflation, and interest rates. The podcast highlights Bitcoin’s growing acceptance by the traditional financial world and its potential to drive a new industrial revolution.
Matthew McClintock, Bespoke Group Founder and Executive Managing Director, joins Marty Bent, Jesse Myers (COO of Onramp), and Michael Tanguma (CEO) on On Ramp’s Podcast The Last Trade: Multigenerational Security for Bitcoin with Matt McClintock. Tune in!
Multigenerational Security for Bitcoin
McClintock discusses the impending transfer of generational wealth from baby boomers to millennials and Gen Z, emphasizing the logical shift towards digital assets for the digital-savvy younger generations. The conversation shifts to the geopolitical implications of Bitcoin’s rise, with innovation hubs in countries like Switzerland, Singapore, and Dubai potentially challenging the US’s economic leadership.
The episode delves into Bitcoin’s integration into estate planning, emphasizing the need for innovative approaches to wealth succession. McClintock explains how Bitcoin can be integrated into trust structures, offering better technology for wealth management than traditional wills. The discussion touches on estate taxes, revocable and irrevocable trusts, and the protection of assets for future generations.
Multi-signature (multi-sig) arrangements are explored in the context of trust-centered planning, focusing on the mechanics of key management and qualitative aspects of long-term wealth preservation. The need for qualified custodians and the maturation of the Bitcoin market are highlighted, along with the role of organizations like OnRamp and Bespoke as bridges between the current financial system and the emerging Bitcoin-based future.
McClintock reviewed the new FinCEN tax exemption regulations beginning January 1, 2024 and their impending impact on privacy. The podcast concludes by discussing the growing interest of fiat whales in Bitcoin and the shift towards non-US denominated fiat wealth and other non-fiat assets.
In summary, the podcast covers a wide range of topics related to Bitcoin’s role in solving economic challenges, its integration into estate planning, the importance of trust structures, the maturation of the Bitcoin market, and the changing landscape of global finance.
Onramp solves for the three pillars of bitcoin ownership; facilitate accumulation of the asset, orchestrate the optimal custody solution, and educate holders to appreciate the long-term signal value of the asset while ignoring the short-term noise that twitter and mainstream media propagate.
Onramp was designed from the ground up for HNWI, Family Offices, Investment Funds, Corporations, and Institutions that want best-in-class custody without any tradeoffs, but are not yet ready to take on the responsibility of self-custody.
This information is intended for general educational purposes only and should not be construed as legal or investment advice.
How to build trust in an increasingly digital world? With the rapid advancements in technology, the podcast episode: e-State Planning for Bitcoin and Other Crypto Assets explores how trust is both essential and challenging to establish and maintain in various aspects of our lives. Jonathan Mintz, Senior Managing Director of Bespoke Group, delves into the crucial topic of building trust in an increasingly digital world on the “Trust Me” podcast with Kevin Bryce Jackson.
This blog post is a summary of their conversation.
Trust in the Digital Landscape
The conversation is kicked off with discussion surrounding the importance of trust in today’s digital landscape. Jonathan highlights how trust forms the foundation for successful relationships, transactions, and collaborations, emphasizing its impact on businesses, institutions, and individuals.
Trust – Eroding Challenges
Drawing on insights from industry experts and thought leaders, Jonathan and Kevin explore the challenges posed by cybersecurity threats, data breaches, and privacy concerns that erode trust in the digital realm. As well as discussing perspectives on the measures individuals and organizations can adopt to protect their data.
The podcast also delves into the role of trust in the context of social media and online platforms. It examines the spread of misinformation, fake news, and the manipulation of online content, shedding light on the critical need for platforms to prioritize trust and integrity.
Rebuilding Trust
Throughout the episode Jonathan discusses practical strategies for rebuilding trust and fostering transparency. He explores the significance of accountability, authenticity, and ethical behavior in cultivating trust among consumers, clients, and partners. Additionally, the podcast discusses the role of technology itself in facilitating trust, such as blockchain and decentralized systems.
“Trust Me” aims to equip listeners with a deeper understanding of the importance of trust and its influence in our digital lives. By addressing the challenges and providing actionable insights, the episode offers a valuable resource for individuals and organizations striving to establish and maintain trust in an ever-evolving digital landscape.
The following information is intended for general educational purposes only and should not be construed as legal or investment advice.
If you want to be the only person in the world who has access to your Bitcoin while you’re still alive, then how do you make sure it’s handled correctly when you pass away? How do you ensure it’s passed along the right way and that you’re not passing along just a fraction of the wealth you left due to taxation and poor wealth management?
Why is estate planning so important?
So you have your stack and plan on passing the keys to your kids before you die. If that’s as far as your digital asset legacy planning goes, it’s an inadequate solution. Why? It’s naïve.
The government has created default rules that will dictate how your property will be distributed when you die. If you don’t intentionally create a plan to privatize this process, one that the law recognizes, odds are the decisions made on your behalf are not the ones you’d make for yourself. Proactive, intentional estate planning is the ultimate exercise in self sovereignty.
For more about why estate planning is so important click here.
Where to begin with estate planning?
Pick a trust. Why? A will, on the other hand, guarantees a probate process. The probate process, across the country, is a public process. Courts will step in when you pass away.
With a revocable trust or living trust, this is not the case. The transfer of wealth to the successor trustee can almost seamlessly take control of those assets, privately.
Developing a trust is a process in which you articulate what you want to happen to your property in the case something happens to you. You decide who you want to manage the assets and how you want them to manage them. This applies to those with a couple hundred thousand of wealth and a couple hundred millions.
With Bitcoin, in addition to transitioning the private key material, there are still strategic provisions the trust should contemplate. You can learn more about those specifics by joining the conversation here.
Level up estate planning from more than a will or a trust.
A whole world of complex estate planning is out there. Check out this example:
A revocable trust is simply a way to privatize your asset decision making down the road, but it gets you zero tax and asset protection during your life.
Perhaps you want to shift some of your Bitcoin wealth out of your estate, for tax reasons. Maybe you’ll want to look at putting the Bitcoin in an irrevocable trust, so that growth is happening outside of your estate for tax purposes.
For more information on the many options to level up your estate planning from more than a will or a trust, click here.
Title and possession
What’s the difference between title and possession, and what’s the significance of these components within estate planning?
This conversation starts with severance of unilateral control. At Bespoke, we believe the use of a qualified custodian makes the most sense. If you aren’t paying for custody, then you are the product. Learn more about severance of unilateral control, title vs possession here.
How to identify an estate planner
Interviewing estate planners in your area? Here are some questions to help you evaluate them and ensure you’re selecting the right estate planner.
How do they view planning? Is it a simple transaction or relationship that evolves over time?
Fixed fee engagement or hourly? It’s important to know your all-in cost before committing to anything.
Is estate planning a main focus of their company?
Do they understand the nuances of dealing with Bitcoin?
This blog post is a summary of the Unchained Webinar Episode: Estate Planning on a Bitcoin. featuring our Co-Founders Matthew McClintock & Jonathan Mintz, Bespoke Co-Founders joined. Grab the full conversation here.
The following information is intended for general educational purposes only and should not be construed as legal or investment advice.
Look back at events in the past decade – why crypto emerged
Major solutions around digital technologies in the last 2 decades have emerged. Semiconductors unlocked software, which made way for the smartphone/desktop economy, creating the app economy, and then emerged the digital economy. With digital realities, generational wealth was created with those early investors. Digital assets are a natural extension of the technology and finance industries. So where’s the next big lift? What bottlenecks are holding us back?
Implications of building wealth at unprecedented speeds
These individuals are visionaries, with eyes on the world they envision they are still left with the world as it is today. Dealing with matters like security and taxes, among other necessities to protect those digital assets.
Switzerland is far ahead of the US in crypto regulations. There are ancient elements ingrained in Swiss culture, business, and banking that align with the values of crypto. Here are a couple ways core Swiss concepts speak to the ethos of crypto:
True Swiss banks are custodian banks.
Collaborative approach to building crypto regulations
2 fully regulated digital asset banks
Suite of service providers
Souq (platform for buying and selling goods using cryptocurrencies)
In the final portion of the webinar you’ll learn about the less obvious areas of crypto to keep an eye on and what’s to come, from Bespoke experts Matt McClintock and Sune Sorensen.
Access the full webinar below.
The following information is intended for general educational purposes only and should not be construed as legal or investment advice.
Stephan Livera Podcast: UHNW Bitcoin Strategies Matthew McClintock, executive managing director of Bespoke Group joined Stephan Livera on his podcast to chat about Bespoke’s multi-family office and private trust company services for ultra-high net worth US clients. They discuss:
What level of wealth qualifies for a family office?
What are the concerns of Bitcoin-affluent families?
What kind of structures can they use?
Benefits of these structures
Trade offs of the approach
How the Sovereign Individual thesis may play out
Should UHNW Americans consider staying out of these structures?
What’s needed from a technology and culture perspective?
Check out the podcast on Apple, Android, or by clicking the link below.
