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.
Managing a trust is not as easy as it sounds. You cannot just set money aside, name a trustee, and let them handle the details. What if the trust includes a family business, multiple investment accounts, or real estate? In such a case, a single trustee is forced to juggle too many responsibilities. This can lead to bad investment decisions, family disputes, or mismanagement.
The solution to this problem is to create a directed trust whereby responsibilities are split among different experts. The financial, legal, and family needs of the trust are thus handled separately.
For instance, in a company, the CEO cannot also be the accountant, HR manager, and sales director. A directed trust works the same way because it assigns roles to the right experts.
When one trustee is in charge of everything, emotions can get in the way, especially when it comes to money matters. If a beneficiary feels shortchanged or disagrees with how assets are handled, it can turn into a legal battle.
In a directed trust, these issues are less likely to occur because decision-making is shared. For example:
Mississippi allows directed trusts under Section 91-8-715 of the state’s Uniform Trust Code. Under this provision, different fiduciaries can be held accountable if they don’t follow their responsibilities. Courts have the power to remove advisors or trustees if they mismanage the trust.
Is a Directed Trust Right for Your Estate?
If your trust includes businesses, investments, or valuable property, a directed trust could be a smarter way to manage assets. To learn more about setting up a directed trust in Mississippi, contact O’Brien Law Firm, LLC, today for guidance.
Bankruptcy laws have existed since way before crypto burst onto the scene. However, courts can still apply old rules to new technology. When someone files for Chapter 7 bankruptcy, the court may claw back certain transactions, especially if they look like an attempt to hide assets.
If a person transferred or withdrew crypto before filing, those funds could be pulled back into the bankruptcy estate. Courts can use blockchain records to find hidden funds and recover money for creditors.
In Chapter 7 cases, courts focus on transactions made before bankruptcy. If a debtor moved assets within 90 days of filing, the court may deem it a preferential transfer under Section 547 of the Bankruptcy Code. If the transfer was done to cheat creditors, it could be labeled a fraudulent transfer under Section 548.
Since crypto transactions are recorded on the blockchain, financial experts can trace where the money went. Courts then decide if those assets should be returned to the bankruptcy estate.
Crypto clawbacks aren’t as simple as recovering cash. Some of the legal questions include:
If you are facing a clawback claim, your defense might include:
If you’re involved in a bankruptcy that includes digital assets, please consider getting legal help. Contact O’Brien Law Firm, LLC, today to discuss your case and protect your financial future.
Caring for a loved one with a disability comes with important financial decisions. While you want to provide for their future, if you give them money directly, you could put their Medicaid or Supplemental Security Income (SSI) at risk. A Special Needs Trust (SNT) helps solve this problem. An SNT allows you to set aside funds for their care without affecting their ability to receive government assistance.
An SNT is a legal arrangement that holds assets for a person with disabilities. Instead of giving money directly to the individual, you place the funds in a trust and let a trustee manage it. With an SNT in place, the money is used for approved expenses and the beneficiary is still eligible for government programs.
Funds in the trust can be used for any of the following:
Choosing the right type of trust depends on where the assets come from.
A well-structured SNT provides long-term financial security. Without one, an inheritance or large gift could make the beneficiary ineligible for Medicaid and SSI. Once that money runs out, they may have trouble requalifying for benefits.
An SNT also protects the beneficiary from mismanaging funds. A trustee oversees spending, ensuring the money is used wisely. This prevents financial abuse or unintentional misuse that could leave the individual without resources.
A Special Needs Trust helps you provide financial support while protecting government benefits. It ensures your loved one has access to medical care, personal services, and quality-of-life improvements. Contact O’Brien Law Firm, LLC, in Southaven, MS, today to learn how an SNT can fit into your estate plan.
