It’s time for traditional estate planning to start evolving, just like our technology and our currency. It seems the buzzword the past year or so has been “cryptocurrency” and if you’ve taken part in the craze, then you know how quickly things are evolving. As our assets and our lives move online, we need to think ahead to what this means for our families and our estates long after we’re gone. Companies are slowly starting to offer estate planning services for digital assets, but these may still be a long way off or may not fully protect what you have. So if cryptocurrency is or is becoming a big part of your financial future, here are some tips to protect your digital wealth.
Securing Your Digital Assets
Cryptocurrency is typically stored and accessed through a digital wallet. These wallets will typically have a password “key” to be able to access the information. Much like a general password for any online accounts, making sure your loved ones know how to access your cryptocurrency is vital to ensuring a smooth transition of assets when the time comes. Because these new technologies and currencies don’t have the same regulations and protections as traditional monetary accounts, it becomes up to you to provide security and planning for the future. So what can you do to protect your crypto assets?
How to Include Cryptocurrency in Your Estate Plan
- Name your beneficiary to your digital assets, but also make sure they know what you have and how to access it.
- Walk that person through accessing your accounts. Even if you are choosing someone who is tech savvy, they may not be well versed in the type of accounts or password managers that you use.
- Keep crypto assets as a part of your wealth inventory list.
- Create a trust and include these assets so there are direct instructions on who they should be left to.
- Find a safe but easy way for your beneficiaries to access any account or login information.
The main purpose of estate planning is to not only protect your assets, but to protect your loved ones in case anything were to happen to you. As our lives and our wealth are moving online, it may be hard to plan for something that we have no way of knowing which direction it will go. But aside from long term planning, you should always prepare for the unexpected. If something were to happen to you tomorrow, do you have a plan? So while cryptocurrency may be volatile at the moment, if it is a part of your wealth right now, don’t let your family miss out in case there is an emergency.
We can help if you are in need of an estate plan or need to update an existing plan. Contact us today and see if we are the right fit to help secure your family’s legacy.
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Disclaimer: This article is intended to serve as a general summary of the issues outlined therein. While this article may include general guidance, it is not intended as, nor is a substitute for, qualified legal advice. Your review or receipt of this article by Lexern Law Offices, Ltd. (the “LLG”) or any of its attorneys does not create an attorney-client relationship between you and the LLG. The opinions expressed in this article are those of the authors of the article and does not reflect the opinion of the LLG.