Virtual Money Manager

Would it be possible, and what would it look like, to a virtual money manager or virtual trustee in charge of managing people’s finances? I am in the legal profession, and a frequent big problem I see is when an individual is named as a trustee and given responsiblility to manage the money of other people who are beneficiaries. A typical scenario is where someone leaves money for other family members, and makes one of them responsible for managing the money for all of them (maybe because the others are minors or just because the person named trustee has more money management skills). Another scenario is someone gives money to a professional money manager who acts as trustee for their benefit.

Is it possible to use crypto and defi to minimize the risk of money in the hands of a trustee being embezzled? If so, how? Would the wallet of the trustee need to somehow be linked to the wallets of the beneficiaries and be pre-programmed to always returned to the beneficiaries at a certain time or on the happening of a certain event?

Some trusts are simpler than others- e.g. I might have $100,000.00 that I want to go to my son in 10 years. I could keep it in my bank and hopefully be alive in ten years to give it to him, or I can give it to a third party and hope they obey my wish to give it to him in ten years. This scenario seems more suitable to use blockchain. Other trusts can be more complicated. E.g. I may want the trustee to use the money I put into the trust, and to use their discretion, to pay my son’s necessary educational and health expenses over the next ten years, and after that to pay what’s left over to my son. That seems more difficult to program a blockchain to do.

Another issue, which I think is more AI related, is can we have an AI making the decisions of how to actually invest the money?

Thanks

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2 thoughts on “Virtual Money Manager”

  1. >Is it possible to use crypto and defi to minimize the risk of money in the hands of a trustee being embezzled? If so, how?

    You can create a programmable contract that allows a limited set of operations. For example it could allow money being lent out to money markets or deposited in yield protocols, or traded to other assets, but not allow withdrawing assets unless a set of other addresses approve that (similar to multi-signature wallets).

    If you simply want to keep the assets safe it’s trivial to develop a contract that only allows a specific address to withdraw assets held in that contract after say 10 years. Meanwhile you can keep the private key (password) of that wallet safe using traditional methods.

    >Another issue, which I think is more AI related, is can we have an AI making the decisions of how to actually invest the money?

    Yes, but that has little to do with cryptocurrency or DeFi, blockchains don’t know whether a transaction was submitted by a human or by an algorithm.

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