Cryptocurrency Requires Effective Estate Planning

Every single one of your assets can, and should, be a part of your estate plan. This includes digital assets, such as your cryptocurrency holdings.

Going over the importance of effective estate planning for cryptocurrency, and speaking with a Florida estate planning lawyer at Millhorn Elder Law Planning Group today will help you protect your cryptocurrency holdings.

Why Is Estate Planning Important For Your Cryptocurrency Holdings?

Many cryptocurrencies are connected to private keys. These private keys serve as the doorway to your cryptocurrency wallet which, naturally, holds all of your holdings for a particular cryptocurrency.

Just as an example, if you own Bitcoin, then this Bitcoin is held in a wallet. You need a private key, though, in order to access this wallet.

To ensure that your beneficiaries receive the cryptocurrency you own, you must give them your private keys for each currency you own. This information should be accessible and easy to find.

In the event that your private key is lost, your beneficiaries may lose access to a particular cryptocurrency wallet. Due to how cryptocurrency works, there is a good chance your holdings will be lost forever.

How Can You Protect Your Cryptocurrency Holdings? 

The best way to protect your cryptocurrency holdings is to organize every single piece of information related to your cryptocurrency holdings.

You can do the above by developing a thorough inventory of the cryptocurrency you own. This inventory should encompass the cryptocurrencies you own, the amount you own, and the platforms/hardware they are stored on.

Outside of that information, your inventory should also include the private keys, and wallet information, associated with each one of your holdings.

Right within the inventory, list every password and security measure you have in place. This way, your beneficiaries can look at these passwords and use them to access the currency you own.

Your beneficiaries should be able to look at this inventory and, then, with as few obstacles as possible, access your cryptocurrency holdings.

To protect your cryptocurrency inventory, you must make at least one backup. This backup can be on a USB drive or a shared cloud folder; among other possibilities. And, for further protection, you should make a paper copy, as well.

How Can Estate Planning Protect Your Cryptocurrency Holdings?

You should include your cryptocurrency holdings – and the inventory you developed – in your will/estate plan. But, it is unwise to rely solely on a will.

A will that goes through probate becomes public information in the state of Florida. This means that, if someone was savvy, they could find your will. They could, potentially, gain access to your holdings.

Instead of relying solely on a will, you can develop a trust that bypasses probate. To do so, you must work with a lawyer. Developing a trust is not easy.

By relying on a trust, your beneficiaries will receive your assets almost immediately, instead of having to wait nearly a year. And, your will stays private. 

Speak With A Florida Estate Planning Lawyer Today 

If you would like to ensure that your cryptocurrency holdings go to the right person, you should speak with a Florida estate planning lawyer today.

Source: 

law.cornell.edu/wex/will

law.cornell.edu/wex/probate