cswain11
Posts: 3
Joined: Thu Oct 12, 2017 10:43 pm

how do I set up a wallet using a trust

Thu Oct 12, 2017 10:54 pm

I want to set up a cryptocurrency wallet in an account owned by my Solo 401k trust. Where can I do this? My concern is that wallet account setup pages do not allow an entity like a trust to have ownership of the account. If I set the account up in my name the IRA may treat funds transferred into the wallet account from my Solo 401k trust as a distribution. Distributions are taxable and hence best to be avoided. How can I set up a wallet account using the entity name for my trust?

As of 10/12/17 here is the status of different exchanges in regard to trusts:
Coinbase - does not accept
Poliniex - seems to not accept
Gemini - accepts institutional accounts (this may work)

Any thoughts?

User avatar
nandibear
Global Moderator
Global Moderator
Posts: 2612
Joined: Sat Jan 30, 2016 7:04 am

Donate BTC of your choice to 1DYss8ztWEgcM93SJtnpfYVt6fp7cwmjBk

Contact: Website Twitter Telegram

Re: how do I set up a wallet using a trust

Thu Oct 12, 2017 10:56 pm

I want to set up a cryptocurrency wallet in an account owned by my Solo 401k trust. Where can I do this? My concern is that wallet account setup pages do not allow an entity like a trust to have ownership of the account. If I set the account up in my name the IRA may treat funds transferred into the wallet account from my Solo 401k trust as a distribution. Distributions are taxable and hence best to be avoided. How can I set up a wallet account using the entity name for my trust?

As of 10/12/17 here is the status of different exchanges in regard to trusts:
Coinbase - does not accept
Poliniex - seems to not accept
Gemini - accepts institutional accounts (this may work)

Any thoughts?
Hi cswain1,

Identity is not tied to bitcoin.
Image

User avatar
nandibear
Global Moderator
Global Moderator
Posts: 2612
Joined: Sat Jan 30, 2016 7:04 am

Donate BTC of your choice to 1DYss8ztWEgcM93SJtnpfYVt6fp7cwmjBk

Contact: Website Twitter Telegram

Re: how do I set up a wallet using a trust

Thu Oct 12, 2017 11:08 pm

I want to set up a cryptocurrency wallet in an account owned by my Solo 401k trust. Where can I do this? My concern is that wallet account setup pages do not allow an entity like a trust to have ownership of the account. If I set the account up in my name the IRA may treat funds transferred into the wallet account from my Solo 401k trust as a distribution. Distributions are taxable and hence best to be avoided. How can I set up a wallet account using the entity name for my trust?

As of 10/12/17 here is the status of different exchanges in regard to trusts:
Coinbase - does not accept
Poliniex - seems to not accept
Gemini - accepts institutional accounts (this may work)

Any thoughts?
If you do, however, feel the need to create a connect between identity and bitcoin you could just draft the trust itself (a piece of paper) to include the public key address of the bitcoin address which you'd like to use for your trust.
Image

User avatar
nandibear
Global Moderator
Global Moderator
Posts: 2612
Joined: Sat Jan 30, 2016 7:04 am

Donate BTC of your choice to 1DYss8ztWEgcM93SJtnpfYVt6fp7cwmjBk

Contact: Website Twitter Telegram

Re: how do I set up a wallet using a trust

Thu Oct 12, 2017 11:09 pm

and if not the public key address of the bitcoin address itself then some other identifying language.
Image

cswain11
Posts: 3
Joined: Thu Oct 12, 2017 10:43 pm

Re: how do I set up a wallet using a trust

Sat Oct 14, 2017 10:56 pm

Many thanks Nandibear.

regarding buying cryptocurrency in the name of trust you wrote:
>>Identity is not tied to bitcoin.

Yes, however, to purchase cryptocurrency via a cryptocurrency exchange - like coinbase - I create an account with my identity and pay via my bank account. In this case I need to create an account on the exchange in the name of the trust (or Solo 401k plan).

>>If you do, however, feel the need to create a connect between identity and bitcoin you could just draft the trust itself (a piece of paper) to include the public key address of the bitcoin address which you'd like to use for your trust. >>and if not the public key address of the bitcoin address itself then some other identifying language.

That sounds promising, would you mind providing more info on how to do that? Would it be as simple as adding the public key address in the trust / solo 401k paperwork? Not sure how I would make that official with the IRS.

User avatar
nandibear
Global Moderator
Global Moderator
Posts: 2612
Joined: Sat Jan 30, 2016 7:04 am

Donate BTC of your choice to 1DYss8ztWEgcM93SJtnpfYVt6fp7cwmjBk

Contact: Website Twitter Telegram

Re: how do I set up a wallet using a trust

Sun Oct 15, 2017 12:17 am

Many thanks Nandibear.

regarding buying cryptocurrency in the name of trust you wrote:
>>Identity is not tied to bitcoin.

Yes, however, to purchase cryptocurrency via a cryptocurrency exchange - like coinbase - I create an account with my identity and pay via my bank account. In this case I need to create an account on the exchange in the name of the trust (or Solo 401k plan).

>>If you do, however, feel the need to create a connect between identity and bitcoin you could just draft the trust itself (a piece of paper) to include the public key address of the bitcoin address which you'd like to use for your trust. >>and if not the public key address of the bitcoin address itself then some other identifying language.

That sounds promising, would you mind providing more info on how to do that? Would it be as simple as adding the public key address in the trust / solo 401k paperwork? Not sure how I would make that official with the IRS.
Hi cswain1, it's great to hear back from you.

Before I write anything further I want to state that none of the following is legal advice, legal assistance and I'm not an attorney nor do I have any other related qualifications.

The following are just my silly thoughts as silly nobody person who likes o think deeply and critically about bitcoin and bitcoin related matters.

Read the following as you would read a blog post from a person (like me) who has no qualifications for the subject matter which they write about.

I'm not sure really about how one would go about creating an account in the name of a trust at a fiat-gateway cryptocurrency exchange such as Coinbase. Perhaps there is a way, I'm not certain. However, even if there is a way I wouldn't advocate it.

You also mention "...pay via my bank account..." in your post regarding the trust. Just a side note here but what will you do with bitcoin which you receive but didn't pay for? How will you account for that? What I mean is if you trade some other coins and trade back to bitcoin (for a profit or a loss) how will you account for these? Hopefully I am making some sense, maybe not. Just saying that you probably wont end up just storing bitcoin which you bought with your bank card/account.

Drafting a trust (or any other legal instrument) is something that anyone may do for themselves (although NOT for others unless you have license to do).

You may search online (e..g, Google) for examples of trusts and pdfs of such. You may use those as sort of templates to base yours on.

There's literally no legal document/instrument which one cannot draft for themselves.

There may be some small stipulations from the government agency/department/Court indicating the instrument must have, for example, some certain amount of space at the top for a time stamp or something like that. Other than that a one could, for example, file (at a Courthouse) a Motion for Chunky Peanut Butter and it would be filed and then (because it's Court) it would heard and then an Order would be issued.

I don't see why including the public key address of the bitcoin address, or some other relevant language, in a trust would be any different. It could then notarized (anywhere, including your local Fedex Office for a fee of $10. One could also bring along a witness of two and have them sign as witnesses) and could even be filed (for the sole purpose of making an official record of it) with the appropriate (or any for that matter) government agency and or court.

I'd get creative (after first doing a little more reading).

I hope that some, or all, of the foregoing was entertaining and perhaps provided some comic relief.

Feel free to write back with any other questions which you may have.

Nandibear
Image

cswain11
Posts: 3
Joined: Thu Oct 12, 2017 10:43 pm

Re: how do I set up a wallet using a trust

Mon Oct 16, 2017 9:13 pm

excellent advice Nandibear. I will pursue and let you know what I find out. thank you!

moenk158681
Posts: 1
Joined: Sun Feb 11, 2018 12:31 am

Re: how do I set up a wallet using a trust

Sun Feb 11, 2018 12:34 am

Were you able to find a solution to this? I am finding myself in the same exact situation. I have a Self Directed IRA which is held in a trust. I cannot register that entity in coinbase, and not sure how to setup a wallet for a Trust with the goal of utilizing my SD IRA to invest in crypto's. Any information would be helpful! I am so tech challenges that I cannot figure out how to get a hold of coinbase support, seems to be by design.

GregoryKurth
Posts: 1
Joined: Wed Feb 21, 2018 5:36 am
Contact: Telegram

Re: how do I set up a wallet using a trust

Wed Feb 21, 2018 5:51 am

Thanks for asking the question. I'm in the same situation as I'm trustee for my Solo401k which has its own trust account and EIN. I understand I can set up on Gemini but not on Coinbase. Wondered what other exchanges I can open up an account on? Very complicated and frustrating.

I'm not as worried about the wallet names since they are off the Exchange, but I want to ensure any movement on the Exchanges goes through the Trust name to fully track separately from my individual accounts

Return to “Legal”

Who is online

Users browsing this forum: No registered users and 3 guests