Trust companies across Asia now hold cryptocurrency for families, and digital assets increasingly appear in Australian trusts and deceased estates. The central questions are how to protect those assets, how to account to beneficiaries and how to manage the risks involved.
The trustee’s core duties still apply
A trustee who holds cryptocurrency has the same fundamental duties as for any other asset: to secure it, to invest prudently within the terms of the trust, to keep proper records and to account to beneficiaries. What differs is how those duties are carried out. A private key that is lost cannot be recovered, and a transfer made in error usually cannot be reversed.
Practical issues for trustees
- Custody and access. Who holds the keys, how they are stored, and what happens if that person dies or leaves. Institutional custody and multi-signature arrangements are increasingly common.
- Authorisation controls. It is essential to define who may give instructions, who must approve them, and at what thresholds, so that no single person has full control over the accounts. This protects both the beneficiaries and the trustee. See maker-checker controls in family offices.
- Supervision to prevent fraud. Trust structures should include oversight of the trustee itself, for example through a protector, co-trustee or regular independent review.
- Retaining or converting. Whether to hold digital assets or convert them to cash is an investment decision with tax consequences. Some trustees convert on receipt and hold the proceeds in trust accounts; others retain them where the deed and the beneficiaries support it.
- Investment mandates. Investment powers are generally best drafted in general terms, so that a new asset class does not require the deed to be amended, while setting out the risk parameters the trustee must observe.
- Disputes. Where trust disputes become prolonged, trustees and beneficiaries sometimes agree on a winding-down plan, including how digital assets will be dealt with, to protect all parties.
Deceased estates
Executors in Australia increasingly find that a deceased person held cryptocurrency, sometimes without telling anyone how to access it. A well-prepared estate plan records what digital assets exist, where they are held and how authorised people may access them, without putting keys in the will itself, which becomes a public document once probate is granted.
Beneficial ownership and regulation
Regulators globally are focused on preventing trusts, companies and partnerships from being used to conceal ownership. In Australia, anti-money laundering obligations have extended to lawyers, accountants and trust and company service providers for certain services from 1 July 2026. Trustees and their advisers should expect closer scrutiny of the source of digital assets and who ultimately benefits from them.
How we assist
We advise trustees, executors and families on holding and administering digital assets, draft investment and control provisions in trust deeds and wills, and act as executor or trustee where an independent party is needed. Tax and technical custody advice should be obtained from appropriately qualified advisers. Justin Chua is a Nationally Accredited Mediator and an Affiliate member of STEP.
Frequently asked questions
Can an Australian trust hold cryptocurrency?
Yes, if the trust deed’s investment powers allow it and the trustee acts prudently. Trustees should review the deed and document their reasons for holding digital assets.
How should cryptocurrency be dealt with in a will?
The will can deal with digital assets as part of the estate, but private keys and passwords should not be written in the will, because it may become public. Access information should be recorded securely and separately, with clear instructions for the executor.
Should trust investment powers specifically mention cryptocurrency?
Many practitioners prefer general investment powers, so the deed does not need amending each time a new asset class emerges, combined with clear risk and approval controls.
How can a family reduce the risk of a trustee misusing digital assets?
By separating the authority to initiate and approve transactions, using institutional or multi-signature custody, appointing a protector or co-trustee, and requiring regular reporting to beneficiaries.
Chua Tan Associates advises families, executors, trustees and their professional advisers on estate planning, estate administration and estate disputes, in Australia and across borders. To arrange a confidential consultation, please contact our Melbourne office on +61 3 9602 3988 or submit an enquiry. Advice is available in English, Mandarin and Cantonese.
Justin Chua (蔡智勋), lawyer and mediator, Chua Tan Associates, Melbourne. General information only, not legal or tax advice. Victorian law unless stated otherwise.
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