TLDR Jake Claver warns XRP holders about the legal, tax, and estate risks associated with their crypto holdings. XRP held in personal wallets is vulnerable to discovery in lawsuits, potentially leading to asset seizures. Claver emphasizes the importance of using legal tools like revocable living trusts to protect crypto wealth. XRP holders can benefit from a step-up in basis at death, eliminating capital gains taxes for heirs. Claver advises wealthy XRP holders to utilize the annual gift exemption to pass on wealth tax-free. 💥 Find the Next KnockoutStock! Get live prices, charts, and KO Scores from KnockoutStocks. com, the data-driven platform ranking every stock by quality and breakout potential. Jake Claver, CEO of Digital Ascension Group, is urging XRP holders to act quickly to protect their assets. He highlights the potential risks for those holding significant crypto portfolios without proper legal structures. According to Claver, without these protections, investors could face lawsuits, probate issues, or forced asset sales. Legal Risks for XRP Holders Claver explains that XRP, like other cryptocurrencies, is classified as property by the IRS. This status allows wealthy individuals to use long-established asset protection tools. However, he warns that many XRP holders still fail to apply these strategies, leaving their crypto vulnerable in legal disputes. XRP held in personal wallets is fully discoverable in lawsuits, Claver notes. A judge can order access to private keys in a lawsuit, making it easy for creditors to seize assets. Attempting to hide assets could result in contempt of court or even jail time. Claver stresses the importance of asset protection for families with extensive XRP holdings. Without a proper structure, families may face extensive legal battles over their crypto wealth. He recommends using tools such as revocable living trusts to protect assets and avoid probate. Claver also points out a significant benefit for XRP holders that many overlook: the step-up in basis at death. If an investor bought XRP at $0. 50 and passed away when its value reached $100, their heirs would inherit it at $100. This eliminates capital gains tax on the asset’s appreciation. Furthermore, Claver advises wealthy individuals to use the annual gift exemption to pass on up to $13. 6 million per person, or $27. 2 million for couples, tax-free. This strategy can help preserve generational wealth for XRP holders while minimizing tax liabilities. XRP holders can also explore borrowing against their crypto assets. This method, which wealthy individuals commonly use, allows investors to access liquidity without triggering taxable events. Claver highlights how Elon Musk used this strategy to finance his $40 billion Twitter deal, and XRP holders can follow suit. Claver Recommends Institutional Custody for XRP Security Claver encourages XRP holders to consider institutional custody for added security. Moving crypto assets into insured, bankruptcy-remote accounts can prevent catastrophic loss and enhance legal protection. This ensures that the assets are not exposed to risks such as insolvency or theft. For added legal protection, Claver recommends transferring XRP holdings into a Wyoming LLC. This setup provides charging-order protection, meaning creditors cannot seize the LLC’s assets. If the LLC is structured with proper corporate records, its liability shield becomes more robust. Claver concludes by stressing that many XRP holders still view their crypto as a high-risk investment. He compares this mindset to that of wealthy families who treat their assets like commercial real estate. These families use legal structures to protect and grow their wealth, and Claver urges XRP holders to adopt similar strategies.
https://coincentral.com/xrp-holders-urged-to-strengthen-legal-protection-against-risks/
XRP Holders Urged to Strengthen Legal Protection Against Risks
