Estate Planning Tips If You Invest In Crypto
Do you own cryptocurrency? Until recently, when you thought about estate planning you only thought about homes, money in the bank accounts, stocks, and other similar assets. Today, many people have one more asset that is becoming more and more common: cryptocurrency. What happens with that cryptocurrency once you pass away? Well, that’s for you to decide in your estate plan.
What Is Cryptocurrency?
Cryptocurrency (or simply, “crypto”) are digital currencies that you may use to buy goods or services. However, unlike cash and traditional methods of payment, crypto may only be used online. They are mainly unregulated currencies that work on a decentralized technology called a blockchain.
There are more than 6700 different crypto out there, the most popular are Bitcoin and Ethereum. Those who have invested in cryptocurrency for quite some time may have achieved a good level of crypto wealth, which is why they should add them to their will in the event of their passing.
Can You Bequeath Crypto in Your Will in Georgia?
Yes, you may bequeath cryptocurrencies in your will in Georgia. Since crypto is seen as important assets right now, in the event of your passing you may leave them to your descendants or to whomever you want in your will or trust.
5 Facts about Cryptocurrency
Intrigued by the prospect of cryptocurrency? Here are some crypto facts that you may want to know about them.
Cryptocurrency exists only online.
Since it is a form of digital money, there is no way for you to physically lose the money.Cryptocurrency is very secure.
Popular cryptos such as Bitcoin are encrypted and secured, backed by special systems.Cryptocurrency is not traceable.
It has anonymity, in the sense that you don’t need to reveal anything about your identity. It’s like making payments with a pseudonym.The IRS taxes cryptocurrency as property.
Crypto is not currency for IRS tax purposes. This means that you won’t be paying as much in taxes.Crypto assets can become a part of your plan.
As a result, if your wealth consists of money in the bank and other physical assets, as well as cryptos, you may add them to your will or trust fund.
How To Include Cryptocurrency In Your Estate Plan
First things first, if you wish to include cryptocurrency in your estate plan you need to list your cryptocurrency as an asset in your will. Bear in mind that cryptos are digital assets and part of a digital wallet, which means that you will need to create a document with instructions on how to access your digital wallet. Usernames, passwords – you need to write down the key to your crypto with everything of importance so that the executor can gain access from your will. According to the New York Times, tens of billions worth of Bitcoin have been locked by people who forgot their key.
The Bottom Line
Crypto is an important asset in many portfolios, so if you own them, you need to make sure they aren’t lost in the event of your passing. A Georgia estate planning attorney can help you go through the steps of including cryptocurrencies in your will and naming your crypto beneficiaries, and making sure that the instructions you leave behind are complete and easy to understand.
If you need help with creating a trust or will to protect cryptocurrency assets and your loved ones after you are gone, contact your trusted legal partner, the team at SmithTaire Legal.
Schedule an appointment with us today at 678-253-8133 to discuss your situation.