let's get into why and how to set up an LLC or trust prior to a liquidity event for an investment in digital assets so first off we're gonna have to figure out do you meet the gift tax threshold in your jurisdiction here in the U.S that's going to be 12.92 million dollars for an individual or 25.84 million dollars for a married couple okay so between you and your spouse you both get that lifetime gift tax threshold and you might be asking why does that matter well if you're going to gift your assets into a trust anything above that amount is going to cost you 40 percent in taxes which is steep so this is this is where you're going to decide whether you're going to set up a trust prior to the liquidity event or if you're going to set up an LLC and just move it there so that you can set up an account and have the tax advantages that that provides