Estate Planning for Cryptocurrency Holders
Cryptocurrencies might be the way of the future. They could also require significant changes to your estate plan.
Cryptocurrencies gained popularity in the past few years, especially with the rise of one of the most popular cryptocurrencies, Bitcoin. Cryptocurrencies are digital assets that do not require a centralized bank. Instead, they allow the transfer of funds electronically. Currently, one Bitcoin is equal to nearly $3,500 United States Dollar (USD). However, the number can change second by second.
If you are a Bitcoin or other cryptocurrency investor, it is important you protect your digital assets just as you would any other investment. While it is possible to create an estate plan for digital assets, the process is a little more unique.
According to a recent article in Forbes, the most complicated part of giving your cryptocurrencies to your heirs will be for them to know where to find and how to access your digital assets. When creating your estate plan, it is important to outline the following:
- The types of cryptocurrencies you hold
- The websites or online locations used to access your cryptocurrencies
- Any security measures that are in place to access your cryptocurrencies
- The passwords, pin numbers, phrases or recognitions to pass security measures
- Courts emphasize the importance of leaving an estate plan with as much information about your digital assets as possible. Even if a court designates your cryptocurrencies to your heirs when you pass away, it will be difficult for them to attain any assets if they are not able to access your accounts.
Creating an estate plan for your cryptocurrency assets can be complex. It can be beneficial to consult with an experienced comprehensive estate planning attorney to ensure your assets are properly protected.