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Orderly Succession of Virtual Assets
Mr. Zhang’s Digital Empire
Mr. Zhang is a leading figure among the new generation of online writers. His sci-fi novel series has amassed over a million fans across major platforms, generating over $2 million in annual copyright revenue.
Beyond traditional royalty earnings, he also holds approximately $500,000 worth of Bitcoin, Ethereum, and other digital assets. Additionally, the fan economy value of his three major social media accounts is a significant financial asset.
The Risk of Digital Asset Loss
In 2020, a well-known blogger passed away unexpectedly, causing their digital assets to be lost due to a lack of succession planning. This case alerted Mr. Zhang to the risks associated with:
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Private key management for cryptocurrency wallets
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Succession of online accounts
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Long-term management of digital copyrights
Legal uncertainties further complicate the issue, especially since his digital assets are spread across multiple platforms worldwide, each governed by different service agreements and legal frameworks.
Recognizing that traditional estate planning methods do not adequately address these digital challenges, he decided to establish a dedicated trust for his virtual assets.
The Trust Structure and Mechanism
The trust covers:
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Private keys for digital wallets
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Copyright royalty rights
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Social media account management rights
It also incorporates a dual-authentication mechanism:
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Under normal circumstances, a trustee manages the copyright revenues.
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If Mr. Zhang is unresponsive for 180 consecutive days, the succession process is triggered.
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The notarized asset package is transferred to the designated heirs.
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Social media accounts are handled according to his will.
Solving Virtual Asset Succession Challenges with a Family Trust
✅ Professional custody prevents private key loss.
✅ Balances privacy protection and inheritance needs.
✅ Adapts to new asset classes in line with legal innovations.
