USA Law and Practice Contributed by: Diana Zeydel, Marc Selden, Benjamin Babcock and Brian Smith, Greenberg Traurig, LLP
is essential to help ensure proper management and transfer upon death. Access to and control over these assets by fiduci - aries are governed primarily by the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which has been adopted in most US jurisdictions. Under RUFADAA, a personal representative, trustee or guardian may access digital assets if the account holder has provided explicit authorisation through estate planning documents or via online tools offered by service providers. Effective succession planning might include clear instructions in estate planning instruments regarding the management of digital assets. This includes speci - fying who should have access, the scope of authority (eg, view only versus full control), and how credentials like usernames and passwords should be handled. Without such provisions, fiduciaries may face legal or technical barriers to accessing these assets, even if they are otherwise entitled to manage the decedent’s estate. Cryptocurrency presents unique challenges due to its decentralised nature and reliance on private keys. Failure to document access credentials may result in permanent loss of value. Practitioners often recom - mend secure storage solutions and explicit guidance in estate documents to ensure continuity and control. 3. Trusts, Foundations and Similar Entities 3.1 Types of Trusts, Foundations or Similar Entities Trusts and related planning vehicles play a pivotal role in US tax and estate planning by enabling taxpayers to achieve key objectives, including minimising wealth transfer taxes while preserving privacy and establish - ing mechanisms for efficient management and conti - nuity of wealth over generations. Revocable Trusts Revocable, or living, trusts are commonly used to streamline the administration of a taxpayer’s estate, avoid probate and maintain privacy. Such trusts allow
the settlor to retain full control over trust assets during life, provide for succession of control during incapac - ity, and to dispose of assets upon death. Irrevocable Trusts Irrevocable trusts are powerful tools for removing value from a grantor’s taxable estate, reducing trans - fer tax exposure and supporting multi-generational and charitable planning goals. Irrevocable trusts are highly customisable and must be carefully structured to align with the settlor’s objectives and applicable wealth transfer tax and income tax rules. Irrevocable trusts include IDGTs, GRATs, QPRTs, CLATs and CRTs, among other trust vehicles. Dynasty Trusts Dynasty trusts are typically established under the laws of a jurisdiction that permits perpetual trusts, or trusts that can last for a minimum of several hundred years. They are designed to preserve family wealth (including family-owned companies) and provide creditor pro - tection and streamlined mechanisms for investment and distribution of the trust estate to successive gen - erations while minimising wealth transfer tax exposure to the family. Private Foundations and Donor-Advised Funds (DAFs) When US taxpayers wish to benefit charity on a larg - er scale, or take advantage of charitable income tax deductions in a given year without a clear sense of where those assets should be donated, private foun - dations and DAFs are often formed. Private founda - tions, which can be formed either as operating foun - dations or grant-making foundations, provide greater control to the family while DAFs provide similar tax benefits and flexibility in directing charitable contribu - tions without the same level of control and complexity. 3.2 Recognition of Trusts Trusts are a key component of the US wealth transfer tax system and are firmly recognised and respected under federal and state law. They are among the most versatile planning vehicles available for preserving wealth, facilitating succession planning and imple - menting tax-efficient strategies for high net worth individuals and families.
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