Cryptocurrency in Estate Planning
An individual holds and trades the currency electronically in what is called "blockchain" technologies. The key element to this in the field of Estate Planning is the way in which the currency is held, which can present issues for everyone.
Cryptocurrency is often tricky and unforgiving to manage, which is intentional by the system.
The assets are complicated to access.
Crypto assets are typically stored in digital wallets, which require unique measures to manage.
They usually have a password. It is important to note there is no password recovery system.
To put it clearly, mismanagement of Crypto assets can permanently lock you out of funds, with no exceptions. You could own $500,000 worth of the currency and have no hope of retrieving it if you lose/forget your password.
In your Will and Trust, it is essential to…
Make note of where the digital wallet(s) are.
Make note of the password(s) while keeping them secure.
Make note of how the technology is used so your Executor/Trustee can access your funds.
This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship.
For more information on this and other topics, please contact Kevin via any of the channels listed below:
📧 kevin@kmckernan.com | 📞 718-317-5007