The use of charitable structures is another way to mitigate taxes and proves effective for some single-family offices with significant gains in their cryptocurrency portfolios. According to Cliff Oberlin, chairman and CEO of Oberlin Wealth Partners, “Wealthy families that are philanthropic tend to make extensive use of charitable trusts. This way they can eliminate the capital gains taxes on their cryptocurrency positions when they sell as well as benefit the causes they care about. When it comes to a large percentage of single-family offices, we’re seeing them make the beneficiary of their charitable trusts their private foundations.”
Single-family offices often exemplify “smart money.” The advantages they have include:
• Access to some of the smartest and most talented investment professionals in the world.
• The capability to operate long term so they can hold onto solid investments that are not paying off quickly.
• The wealth planning sophistication required to navigate the tax code thereby often super-charging their investment returns.
This last point is no longer restricted to the ultra-wealthy. More than ever before, many affluent investors are able to achieve the same tax-advantaged solutions used by these single-family offices. The key is working with talented experts who can evaluate and explain the possibilities available to a particular successful cryptocurrency investor.
For a complimentary PDF copy of The High-Functioning Single-Family Offices: A Primer for Family Members and Senior Management request the book from [email protected]