Theoretically, a Digital Blockchain Trust or DBT for short, is a type of digital instrument that holds information. The information tracks your crypto holdings and acts based on certain information. For example, if you were to pass away, the DBT, once it verifies your demise as a Verifiable Death Event (VDE), would instantly preform a set of preset instructions. You may set up the DBT to instantly split 20% of your crypto holdings and send it to a charity of your preselected choice. The other 80% being split amongst your children who will receive an email, text, or additional type of communication that prompts them to set up a password to access their Sub Trust Wallet (STW). The STW would require them to verify their identity through a set of pre-scripted identity verification points (IVPs) and set up their password and two factor authentication methods to access their very own digital crypto wallet. An alternative to this would be to send their percentage of your crypto in the DBT to their existing crypto wallet. Let’s say you have college age children and don’t want to give them everything all at once. You can easily build your DBT to make deposits to the STW for each child over time, let’s say a period of years. You may choose to giver the 10% of their share per year for the next 10 years starting when they reach 25 years of age. Walla, your trust has been administered.
What is missing here? Well, a human trustee would generally handle all the trust administration. However, in a DBT the trustee is essentially the information or set of instructions encoded in the DBT. The DBT acts on your preset instructions. This avoids any chance of fraud or misuse of funds by a trustee and ensures that the instructions encoded in your DBT are carried out exactly as you intended. You are essentially acting as the trustee through the DBT after you have passed away. This is a massive improvement over traditional trust documents and is the future of estate planning.
As more and more assets move to a digital blockchain world the ability to safely and securely administer these assets when the asset owner passes away will become increasingly important. We intend to be at the forefront of this new(ish) blockchain frontier. You may put off planning for the future, but the future has a plan for you either way. It’s your digital choice.
Crypto, Estate Planning & Elder Law Attorney