Crypto & Taxes - How the Wealthy Protect and Grow their Digital Asset Portfolios

A compliant framework for crypto wealth that cuts taxes, protects assets, and preserves generational wealth using institutional structures most investors don't know exist.

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1. CRYPTO & TAXES:
HOW THE WEALTHY PROTECT
AND GROW THEIR DIGITAL
ASSET PORTFOLIO
JAKE
CLAVER
CEO
DIGITAL ASCENSION GROUP
www.DIGITALFAMILYOFFICE.io
INSTITUTIONAL STRATEGIES
FOR THE NEXT GENERATION
OF WEALTH

2. THE CHALLENGE:
DIGITAL WEALTH
WITHOUT STRATEGY
Most people who made money in crypto are sitting on a dangerous mess.
Life-changing wealth scattered across wallets, exchanges, and assets
with zero structure. No plan, just money sitting there while you try to figure
out what to do with it.
You might be paying unnecessary taxes on every trade and swap or your
money isn't compounding because it's just parked somewhere doing
nothing. Along with that, you're dealing with risk like regulatory changes,
exchange failures, custody issues that could wipe out chunks of your
wealth before you know what happened. Most traditional advisors don't
understand digital assets and aren't able to provide meaningful support.
What you need is a real framework that protects what you built, grows it
properly, and preserves it long-term. That's what's missing from most
crypto portfolios.

3. CRYPTO
TAXES
Here's the reality: Crypto created massive wealth, but most portfolios
are a structural disaster. No planning, no framework, just assets sitting
there. That means you're paying taxes you don't need to pay, missing
out on compounding growth, and sitting exposed to risks that could
blow up your wealth overnight.
Traditional advisors can't help you because they don't understand
digital assets. What you need is a compliant framework designed
specifically for crypto - one that actually protects what you built, grows
it the right way, and preserves it for the long term.

4. TAX STRATEGY
FOR THE WEALTHY
The wealthy understand the importance of building structure before
investing. They use entities, trusts, and insurance structures to create
layers of protection and tax advantage before a single dollar moves.
While everyone else is paying taxes on yearly gains, they're
compounding tax-deferred. When they need cash, they don't sell and
trigger a tax event because they strategically borrow against their
assets and keep everything growing.

5. BUILDING YOUR
FOUNDATION
The foundation starts with the right legal structures. LLCs, limited
partnerships, and trusts do three things: separate ownership from control,
add layers of protection, and give you flexibility to move assets without
triggering tax chaos. Where you set these up matters just as much as
how. Wyoming is our primary choice since the state offers real privacy
and protection that other states don't.
Get this right and you've built the legal foundation for everything else:
compliant tax strategy, asset protection, and the ability to pass wealth
down without the government taking half. Without it, you're just holding
assets in your own name and hoping nothing goes wrong.

6. USING PPLI FOR
TAX ADVANTAGED
CRYPTO EXPOSURE
Private Placement Life Insurance (PPLI) is for people with fresh capital
who want crypto exposure without the tax liability. You're deploying new
money into insurance-dedicated funds or structured notes that give
you crypto upside. Everything that happens inside the policy (growth,
income, all of it) compounds tax-deferred. When you need money, you
take loans against it tax-free instead of selling and triggering gains.
This works when you're making new allocations and want long-term tax
efficiency built in from day one. You're turning what would normally be
taxable investing into tax-advantaged compounding. That difference
adds up to real money over time.

7. IDFs:
INSTITUTIONAL-GRADE
ACCESS VIA PPLI
Insurance Dedicated Funds (IDFs) give you institutional-grade crypto
access you can't get anywhere else. They only exist inside PPLI
structures, which means most people don't even know they're an option.
But if you want professional crypto exposure wrapped in tax protection,
this is how you get it.
You can allocate to digital asset funds, blockchain venture funds, or
tokenized yield strategies all running through compliant structures
inside the insurance wrapper. It's the same playbook billionaires use
when they deploy capital into hedge funds: tax-advantaged growth
and estate-efficient transfers. Except now you're doing it with crypto
instead of traditional assets.

8. QUALIFIED
RETIREMENT
ACCOUNTS
Self-Directed IRAs let you own crypto directly inside a retirement
account with proper custody oversight. Roth IRAs are even better if you
can stomach the upfront tax hit. you pay now, then everything grows
tax-free forever. No capital gains when you sell. No income tax when
you withdraw.
A $250K Roth contribution that catches institutional-grade crypto
growth could turn into $25M completely tax-free. Make sure to
understand that prohibited transactions will blow up the whole
structure, and custody has to be done right or the IRS will come calling.

9. BORROWING
VS. SELLING
Collateralized loans let you borrow against your crypto and access cash
without selling a single token. No sale means no taxable event. You get
liquidity, your assets keep compounding, and the IRS gets nothing.
Institutional custody handles the security and compliance side so
everything stays clean and audit-ready.
For example, you could borrow $2M against $10M in XRP and you've
realized exactly $0 in taxes. Compare that to selling $2M worth, where
you're immediately hit with capital gains. The wealthy figured this out
decades ago with stocks and real estate. Now it works with crypto too.

10. TAX DEFERRAL
TOOLS
Qualified Opportunity Zones let you defer capital gains from crypto you
already sold by reinvesting into designated real estate projects.
Charitable Remainder Trusts do something different. With this strategy,
you donate appreciated crypto, avoid the immediate tax hit, get
income for life, and whatever's left goes to charity.
Family Limited Partnerships move ownership to your heirs at
discounted valuations, cutting down the estate tax bill when you die.
Each tool solves a different problem. QOZs are for past gains you're
trying to defer. CRTs work when you want income now and a tax
deduction. FLPs are about moving wealth down generations without
getting destroyed by estate taxes. Pick the right one and save millions.

11. ESTATE
& LEGACY
INTEGRATION
Digital estate planning answers the question nobody wants to think
about: who gets your wallets when you die, and how the hell do they
access them? Without a plan, your heirs are stuck guessing at seed
phrases or locked out entirely. Trust structures solve this by creating a
legal framework that preserves assets and cuts down estate taxes at the
same time.
Multi-generational planning protects your heirs from two risks: losing
everything to taxes and losing everything because they can't find the
keys. You can't transfer what isn't structured. If your crypto just lives in
wallets with no legal entity wrapped around it, good luck passing that
down without half of it disappearing.

12. MISTAKES
TO AVOID
•People try to fund PPLI with crypto they already own. Doesn't work yet -
PPLI only takes cash or securities, not existing digital assets.
•Selling their crypto to get liquid, then start thinking about structure. You
just triggered taxes you could have avoided if you'd planned first.
•Poor documentation kills deals during audits. If you can't prove your
cost basis or show clean transfer records, the IRS assumes the worst
and you pay for it.
•Waiting until after a big liquidity event to think about estate planning
means your heirs are about to lose half of what you built to taxes and
probate mess.

13. THE TAX
MITIGATION
FRAMEWORK
The Digital Ascension Group framework follows a sequence: Protect,
Structure, Deploy, Compound, Transfer. One integrated family office
system built specifically for crypto wealth.
Digital Wealth Partners handles the investment management side as a
registered RIA.
Digital Legacy Advisors designs the entities and trusts that create the legal
foundation.
Digital Ascension Group sits in the middle to provide oversight, reporting,
and governance to keep everything compliant and audit-ready so you can
connect institutional finance tools with digital assets in a way that actually
works.

14. THANK YOU
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