Death & Estate Planning

When a property owner dies, their tokenized property needs to transfer to their heirs or estate. The Fabrica Trust addresses this directly, providing clear paths whether or not the heirs have access to the deceased owner's wallet.

If Heirs Have Wallet Access

If the deceased owner's estate or successors have inherited access to the private keys or signing credentials controlling the wallet, no special process is required. The successors can:

• Exercise owner rights directly, including using, transferring, or selling the property
• Dissolve the trust through the standard off-ramp process (burn the token, receive a deed)
• Continue holding the property as a tokenized asset

Because the property's recorded title is held by the Fabrica Trust (not by the deceased individual), the property title does not need to be separately conveyed through probate. The trust continues to hold title regardless of the owner's death. The heirs simply need access to the wallet to exercise control -- the token functions as a bearer-like instrument. However, the beneficial interest represented by the token may still be subject to estate proceedings depending on the jurisdiction. Property owners should consult an estate planning attorney for guidance specific to their situation.

This path requires no court involvement, no Fabrica involvement, and no special legal procedures.

If Heirs Do Not Have Wallet Access

If the heirs cannot access the wallet, the trust agreement provides a modified version of the Token Recovery process (Section 10.3 of the trust agreement). The process follows the same self-service recovery path with these modifications:

1. Claimant identity

The claimant is the deceased owner's legal successor: an executor, administrator, or heir as determined by applicable law.

2. Proof of legal succession

The Notice of Lost Token Control must be accompanied by proof of legal succession that is valid under the laws of the jurisdiction where the property is located. Acceptable documents include:

• Letters testamentary
• Letters of administration
• Small estate affidavit
• Any equivalent instrument recognized by local probate or succession laws

This proof is recorded together with or as an exhibit to the Notice.

3. Completion

After the 90-day Quiet Period expires without contest or wallet activity, the legal successor steps into the position of the beneficiary. They can then direct the trustee to execute a Deed of Distribution, transferring the property out of the trust.

If the legal successor cannot obtain proof of succession that satisfies the requirements of the jurisdiction where the property is located, the dissolution proceeds through the court order path.

Estate Planning Recommendations

Property owners can simplify the inheritance process by taking a few steps during their lifetime:

Wallet Access

• Document wallet recovery information (seed phrases, hardware wallet locations) in a secure location accessible to your estate
• Include digital asset instructions in your estate plan or will
• Consider a multi-sig wallet where a trusted family member or attorney holds one of the required keys

Legal Preparation

• Name a trustee other than yourself, so the trust has continuity if you are incapacitated
• Inform your estate attorney that you hold tokenized real estate and provide them with a copy of the Fabrica Trust agreement
• Include the property token in your asset inventory for estate planning purposes

Tax Considerations

For tax purposes, the beneficiary of the Fabrica Trust is treated as the property owner. Estate tax treatment of tokenized property follows the same rules as traditional real property. Property owners should consult with a tax advisor for guidance specific to their situation.

Incapacity

The trust agreement does not currently include specific provisions for incapacity (where the owner is alive but unable to manage their affairs). However:

• If the owner has granted a power of attorney that covers digital assets, the agent may be able to act on their behalf
• If the owner is under a court-appointed conservatorship or guardianship, the conservator or guardian may petition the court to manage or dissolve the trust under the court order path
• If the owner has set up a multi-sig wallet, other signers may be able to act

Estate planning for digital assets is an evolving area of law. Property owners should consult with an attorney who is familiar with both real estate and digital asset law to ensure their estate plan adequately covers tokenized property.