The world of cryptocurrency is constantly changing, but the same general rules apply to transferring these assets into a trust as they do for any other asset. The goal is to make sure that the asset is titled in the name of the trust where possible, or that the asset is payable to the trust upon death of the Grantor(s), or in the control of a Trustee upon death.
Transfer ownership of the cryptocurrency
Change wallet ownership: If your cryptocurrency is on a platform or managed by a third party entity, use its tools to transfer ownership to the trust. Where possible, reach out to the entity to ensure this is being done correctly.
Create a new wallet: If your currency is held within a digital wallet, you may be able to title a new hardware or online wallet in the trust's name. After forming the new wallet, send your crypto from your old wallet to the new one, which is now owned by the trust.
Use a password manager: Use an encrypted password manager to store and share access to keys and other credentials with the trustee.
Use an LLC: For more complex situations, consider placing your digital assets into an LLC and then transferring the LLC ownership to the trust.
When Trust ownership is not allowed: If your crypto is held in a wallet that is not assignable to the trust and/or does not allow to have the trust to be named as the beneficiary, then your options will be limited. In cases where the access is strictly limited to a transfer key or passcode, you will need to make sure these passkeys/codes are written in a place where your trustee has access. Of course, this is the least secure method, and it is recommended to find a currency account that allows for a wallet to be owned by the trust.
Provide trustee access
Create a secure instruction letter: Prepare a separate document that lists where the assets are and provides clear instructions for access.
Transfer keys and passwords: Securely transfer the private keys or passwords to the trustee. You can transfer a hardware wallet device or store keys on a secure medium. Create a new wallet: If your currency is held within a digital wallet, you may be able to title a new hardware or online wallet in the trust's name. After forming the new wallet, send your crypto from your old wallet to the new one, which is now owned by the trust.
Use a password manager: Use an encrypted password manager to store and share access to keys and other credentials with the trustee.