Have You Purchased Cryptocurrency for The Benefit of Future Heirs? Make Sure You Include Instructions in Terms of Passing It On

Your estate plan might incorporate many kinds of things that you pass on to loved ones, organizations, or other beneficiaries. Most people know that stocks, bonds, bank accounts, and real estate are included in many estate plans.

Coming up with a holistic list of everything in your estate ensures that it passes to who you want and in the way you want. If you overlook certain assets, they may not pass as you intended.

Many different types of assets can be included in your estate plan. More recently, these may include things such as cryptocurrency. If you have recently made the investment in cryptocurrency with the goal of passing it on to your children, you need to be prepared for passing this on in the future.

One analytics chain recently found that 1/5 of the total supply of Bitcoin in the world may be lost forever if the private keys are not properly passed on when the original owner passes away. This mistake can be easily avoided by thinking about the estate planning process in advance and working with experienced lawyers.

For example, you might use a trust for digital assets, which could name the trust as the main beneficiary for any crypto currency assets, such that these are pulled from your overall probate estate and instead are allowed to pass directly to beneficiaries who have been named in the trust. Name a trustee or a digital executor who is responsible for managing all of your digital assets after you pass away.

Don’t let your Bitcoin or other assets get tied up in the probate or other process. Make a full list of everything you own and note how you’ve currently planned for that asset transfer. This will help you stay organized.

Need help with the planning process? Let our Pasadena lawyers guide you through.

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