Future.

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.

Code Can’t Replace Fiduciary Judgment

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’s Law Still Favors Human Oversight

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.

Real Risks: No Room for Error Once Deployed

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.