Blockchain technology has introduced smart contracts into everything, including finance and real estate. Now, some developers are pitching these automated tools for trust and estate administration.
In theory, a smart contract could distribute assets automatically when a condition is met. No executor, no delay. However, this approach raises serious legal questions. Smart contracts may be fast, but they aren’t built to handle fiduciary duties.
Smart contracts follow code. Once the conditions are triggered, the action, such as sending money or releasing an asset, happens automatically. That sounds efficient, but trust law requires more than speed. Executors and trustees must act in the best interests of beneficiaries, and sometimes, that means delaying payment, withholding funds, or responding to legal disputes.
A smart contract can’t pause for a probate issue or correct an error once it executes. It doesn’t recognize nuance. If someone is named in the trust but later found ineligible, the contract may still run unless the code says otherwise. That can create conflicts between what the contract does and what a human fiduciary is required to do.
Mississippi has made progress in recognizing digital assets. Senate Bill 2632 classifies digital property and allows banks to act as custodians using smart contracts. It also defines “control” over assets through private keys and coded permissions. However, nothing in the law extends that power to smart contracts acting as estate executors or trustees.
That means probate courts are still expecting wills and trusts to follow traditional rules: clear legal intent, human discretion, and oversight when disputes arise. Right now, smart contracts don’t meet those standards.
In 2016, a bug in a smart contract led to $60 million being drained from the DAO (Decentralized Autonomous Organization). That same risk applies to trust administration. If a bug or bad input triggers a payout, there may be no way to get the funds back. There’s also no built-in way to pause a transaction for a court order or tax issue.
At O’Brien Law Firm, we assist Mississippi clients who want to use technology safely in estate planning. We’ll explain what is legally allowed and help you protect the people and assets that matter most.
Crypto mining can be expensive, especially when energy prices spike or the market crashes. Miners in Mississippi now have stronger legal protections under the state’s Senate Bill 2603. However, financial trouble can still hit fast. If you’ve racked up debt from electricity costs or equipment leases, Chapter 11 bankruptcy may offer a way to stay in business while sorting things out. Still, IRS rules and local laws add some tricky layers.
Mississippi’s Senate Bill 2603 supports digital asset mining at both the residential and commercial levels. It prevents local governments from changing zoning rules to block mining or placing special noise limits on miners that don’t apply to other businesses. Home miners also get protection as long as they follow general sound rules. No special license is required, even for businesses offering mining or staking as a service.
However, these legal wins don’t erase the financial pressure. Running powerful mining rigs around the clock costs a lot, especially when crypto prices fall. That’s where bankruptcy law comes in.
The IRS counts mined crypto as income on the day it’s created. If you mine $1,000 worth of Bitcoin, that $1,000 goes on your taxes, even if you never sell the coin or its value drops later. That means tax debt can pile up before you ever make cash.
Miners can deduct certain costs, such as power bills, equipment, and even home office space. However, those deductions don’t wipe out the original income tax. And in bankruptcy, that tax still sticks.
Chapter 11 lets you restructure debts while continuing to mine. Core Scientific, a major U.S. miner, used Chapter 11 to stay operational while cutting deals with creditors. In Mississippi, a similar filing can help you renegotiate equipment leases or electricity contracts.
Still, tax debt tied to mining income often remains. You can reorganize how it’s paid, but you can’t erase it. That’s why timing and legal support matter.
If energy bills, taxes, or equipment costs are stacking up, contact O’Brien Law Firm. We’ll walk you through the next steps and help you build a legal plan that fits your situation.
