Estate planning with traditional assets is challenging enough. Add cryptocurrencies, NFTs, and other digital assets, and you’ve stepped into uncharted territory that most estate planners simply aren’t equipped to navigate.
When the IRS classified digital assets as “property” in 2014, it seemed deceptively simple: buy low, sell high, and pay capital gains tax. This classification, however, planted a ticking time bomb in estate plans nationwide that’s now detonating.
Imagine this scenario: Your Bitcoin holdings appreciated 1000% since purchase. You transfer them to your children as part of your estate plan, and suddenly the IRS demands capital gains tax on the entire appreciation, even though no one received actual dollars to pay that tax bill.
If you own significant digital assets, your current estate plan likely contains critical gaps that could result in substantial tax liabilities, lost assets, or both. Conventional estate planning strategies crumble when applied to crypto and other digital assets.
Unlike stocks, bonds, or real estate, digital assets exist in a legal gray area where traditional structures, such as family LLCs, trusts, and inheritance mechanisms, don’t function as intended. Every transfer potentially triggers immediate tax consequences that can shatter carefully crafted plans.
What happens when your heirs inherit wallets they can’t access? Or when the IRS demands valuation documentation for NFTs with no comparable market?
At Allegis Law, we developed specialized strategies to address these unique challenges. We understand both the technical aspects of blockchain technology and the nuances of tax and estate law that apply to digital assets. This rare combination enables us to create solutions that traditional estate planners cannot offer.
We created this comprehensive guide because we’ve seen too many families lose significant portions of their digital wealth due to preventable planning errors. Whether you’re a crypto early adopter with substantial holdings or just beginning to explore the space, this guide will help you navigate the complex intersection of digital assets and estate planning.
Overview: The Definitive Guide to Tax & Estate Planning for Digital Assets – An exploration of how the IRS’s property classification creates unique challenges for digital asset inheritance and transfer.
Chapter 1:13 Tax & Estate Planning Strategies for Digital Assets
Actionable techniques to minimize tax burden and maximize asset protection.
Chapter 2: 5 Core Documents in Estate Planning for Digital Assets
Essential legal instruments every digital asset holder needs in their estate plan.
Chapter 3: Types of Digital Assets and Implications for Tax & Estate Planning
How different types of tokens, NFTs, and cryptocurrencies require different planning approaches.
Chapter 4: The DART: A Revocable Crypto Trust to Preserve Digital Wealth
An innovative trust structure specifically designed for digital asset holders.
Chapter 5: Crypto LLC vs Crypto Corp: Forming the Right Entity
Compare the legal and tax implications of different entity structures for holding digital assets.
Chapter 6: Structuring Your Crypto LLC for Operational Success
Best practices for creating a limited liability company that can effectively manage digital assets.
Chapter 7: Crypto LLC Naming and Trademark Issues
Navigate the legal considerations when naming and branding your digital asset holding company.
Chapter 8: Funding Your Crypto LLC: Avoiding Irreversible Mistakes
Critical steps to properly transfer digital assets to your entity without triggering unwanted tax consequences.
Chapter 9: Choosing the Best Jurisdiction for Your Crypto LLC
Strategic considerations for selecting where to form your entity based on legal and tax advantages. Coming Soon.
Chapter 10: Foreign Ownership of a US Crypto LLC or Crypto C-Corp
Special considerations for non-US persons who want to use US entities for digital asset holdings.
Chapter 11: Crypto LLCs in Estate and Business Succession Planning
How to use LLCs as vehicles for intergenerational wealth transfer of digital assets. Coming Soon.
Chapter 12: Legal & Tax Compliance for Crypto LLCs
Essential reporting requirements and compliance considerations for digital asset holding companies.Coming Soon.
Chapter 13:The Fundamentals of Crypto Trusts in Estate Planning
Core concepts every digital asset holder should understand about trust planning. Coming Soon.
Chapter 14: Choosing the Best Jurisdiction for Your Crypto Trust
Strategic considerations for selecting where to establish your digital asset trust. Coming Soon.
Chapter 15: Irrevocable Crypto Trusts for Digital Asset Protection
Advanced strategies for permanent asset protection and tax optimization. Coming Soon.
Chapter 16: Critical Roles Within Your Crypto Trust and How to Choose a Trustee
Finding the right people to manage your digital wealth after you’re gone. Coming Soon.
Chapter 17: Six Simple Steps to Structure Your Crypto Trust
A practical roadmap to establishing an effective digital asset trust. Coming Soon.
Crypto LLC Case Studies – Real-world examples of successful digital asset estate planning structures. Coming Soon.
Crypto Trust Case Studies – Learn from real examples of successful digital asset trust implementations. Coming Soon.
Disclaimer: This guide provides educational information only and does not constitute legal or tax advice. Please consult with qualified professionals regarding your specific situation before implementing any strategies discussed.
©
2025
Allegis Law, LLC. All Rights Reserved.
