Crypto Millionaires Face Trustee Reluctance Over Offshore Wealth Structures

Wealthy crypto investors are turning to offshore trusts to preserve their assets and reduce inheritance tax exposure, but trustees remain hesitant due to concerns over price volatility, custody risks, and the source of funds.

According to a report by The Financial Times, lawyers and trust advisers have seen an increase in requests from individuals who made their fortunes through cryptocurrency trading, token investments, and digital asset businesses. These investors want to move some of their wealth into conventional trust structures, but finding trustees willing to accept the assets has proven challenging.

One reason for this reluctance is that trustees are responsible for protecting assets on behalf of current and future beneficiaries, including verifying the source of funds and ensuring they were not obtained through illicit means. This can be complicated when dealing with cryptocurrencies, which often involve complex transactions and transfers between wallets and exchanges.

Ronald Graham, a partner at Winston Taylor, noted that younger members of wealthy families have increasingly asked for trust assets to be invested in crypto, but some trust companies have hesitated over such requests due to the risks involved.