Cryptocurrency can make a great asset, and addition to your estate plan. But if you don’t manage it correctly, it could be lost forever when you pass away. Fortunately, there are some new strategies that are being used to protect these assets, and make sure they can be transferred successfully. A lot of people may not see cryptocurrency as being compatible with estate planning, because of the decentralized nature of this type of asset. The right planning, however, can work around those concerns for most investors.
The idea of handing over your private keys to crypto-assets is one that doesn’t necessarily feel safe. But remember, if no one knows you have that asset, and no one can access it when you pass, it’s simply gone for good. You need to make sure people you know and trust can get to your cryptocurrency, and that you’ve set up protections to ensure that it can be transferred to other people after your death.
While seasoned investors generally don’t worry too much about handing over information to trusted advisors, and will probably think to do that upon investing, someone who’s new to asset management may not. First-time investors can forget that asset management extends to what happens after their death. Those who invested in Bitcoin early on in the process may also have forgotten to include that information in their estate plans. That means millions of dollars in assets are vulnerable.
Not only should the information be in your Will, but you also need to make sure your loved ones know that these assets exist, and that they should be transferred to them when you pass away. With professional advising and assistance, you can create an estate plan that includes access to your cryptocurrency holdings, to protect what you’ve accumulated and ensure it’s passed along.
At The Estate Planning & Legacy Law Center, we can help you evaluate and incorporate your digital assets and cryptocurrency in your overall estate plan. To learn more and to schedule a meeting, contact us today!