Wealthy crypto investors and entrepreneurs are increasingly turning to offshore trusts for estate planning and tax optimization, however, trustees remain cautious due to volatility, storage risks, and questions about the source of funds. This was reported by Financial Times.
Trusts allow for the separation of assets from a person's personal estate and are typically used by affluent families to transfer wealth between generations. Depending on the structure and jurisdiction, they can reduce inheritance tax burdens. The challenge for cryptocurrency holders is finding trusts willing to accept such assets. Charlie T, a partner at the law firm Withers, noted that only a small number of trust companies he has encountered are willing to hold cryptocurrency. Some clients sell tokens before contributing funds to the trust, however, trusts may remain cautious even after conversion to fiat. Ronald Graham, a partner at Winston Taylor, added that younger members of wealthy families are increasingly asking to invest trust funds in cryptocurrency. Some trust companies are hesitant, as trustees are responsible for protecting assets on behalf of current and future beneficiaries.
According to HMRC data cited by Financial Times, taxpayers in the UK sold crypto assets worth £13.8 billion in the year ending April 2025. Most sales were made by men under 45 years old. Nearly 250 taxpayers reported capital gains exceeding £1 million from the sale of crypto assets. Later HMRC data showed that 17,600 taxpayers reported £1.38 billion in taxable profits from cryptocurrencies for the tax year 2024–25, with 240 investors accounting for £717 million, each declaring gains of over £1 million. According to auditing firm UHY Hacker Young, around 81,000 warning letters were sent to crypto investors suspected of underreporting taxes.
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