Jake Claver, CEO of Digital Ascension Group, has issued a stark warning to XRP holders about the legal, tax, and estate risks associated with their cryptocurrency holdings. He emphasizes that XRP held in personal wallets is fully discoverable in lawsuits, potentially leading to asset seizures if a judge orders access to private keys. Without proper legal structures, investors could face contempt of court, probate issues, or forced asset sales.
Claver recommends using revocable living trusts to protect assets and avoid probate, noting that this is crucial for families with extensive XRP portfolios. He also highlights the step-up in basis at death, where heirs inherit XRP at its current market value, eliminating capital gains tax on appreciation. For example, if XRP is bought at $0.50 and reaches $100 at the holder's death, heirs receive it tax-free at the higher value.
Additionally, Claver advises wealthy XRP holders to utilize the annual gift exemption—up to $13.6 million per person or $27.2 million for couples—to pass on wealth tax-free. He suggests borrowing against XRP assets to access liquidity without triggering taxable events, citing Elon Musk's $40 billion borrowing strategy for the Twitter deal as an example. For enhanced security, Claver encourages institutional custody in insured, bankruptcy-remote accounts and transferring XRP into a Wyoming LLC for charging-order protection, which shields assets from creditors.
With XRP's price around $2.13 and predictions of it reaching $100, Claver stresses that higher valuations increase legal scrutiny, making asset protection urgent. He compares XRP holdings to commercial real estate, urging holders to adopt long-term wealth preservation strategies used by wealthy families.
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