Estate Planning for Your Cryptocurrency Assets
As technology evolves, so does our money. While writing a will and keeping important contracts in a safety deposit box used to be enough to ensure your finances were protected after your death, times are changing. The rise of cryptocurrency means new laws and considerations must be taken into account when estate planning.
Of course, many of the same old rules apply. The executor of your will should know about your assets and how they can access them. The access to cryptocurrency – or lack thereof – is often the trickiest part of handling digital assets. Thankfully, though, you don’t need to be a tech expert to ensure your crypto is protected and passed on the way you intend.
Communication is Key
Talk with your executor and heirs about your crypto assets. Explain how they work, where they are located and hand over passwords or PIN numbers that might be needed. Like with any other asset, you’ll want to clue in your heirs and executor to ensure that everyone is on the same page. Transparency is important when it comes to estate planning.
Without that honesty, trouble looms large. Your digital assets could easily be overlooked, collecting virtual dust as your heirs focus on more tangible forms of inheritance. It’s of equal importance to clue in your attorney, otherwise your heirs could see your assets tied up in years of legal battles.
How to Prepare
Just as you get your bank accounts and real estate holdings in order for your will, you’ll want to prepare records of your cryptocurrency, too. Make both physical and digital copies outlining your assets, securing them in safety deposit boxes and in the cloud. Depending on how active a trader you are, you may need to update this list frequently.
Cryptocurrency laws are still evolving, but by keeping a record of your holdings and ensuring your loved ones have access to them, you’ll set them up for as easy a transition as possible. Still not clear on how best to ensure your cryptocurrency is protected? We’re here to help. Advising clients on the ins and outs of estate planning is what we do best. Schedule a consultation to chat about the options for your cryptocurrency, 501-221-7776.