Cryptocurrency has gained popularity in recent years as a form of digital currency that utilizes cryptography for secure financial transactions. As such, it has become an increasingly common asset that people own and hold in their estate. Properly handling cryptocurrency in estate planning is important to ensure that it is distributed according to your wishes after your passing.
One of the first steps in handling cryptocurrency in estate planning is to make sure that your loved ones are aware of your cryptocurrency holdings. You should provide clear instructions on where to find your cryptocurrency and how to access it. This usually includes providing login information for any cryptocurrency exchanges or wallets that you use to store your digital assets.
It is also important to consider how you want your cryptocurrency to be distributed after your passing. This can be done through a will or trust, which should be drafted by a qualified attorney. You can specify the specific cryptocurrency holdings that you want to be distributed and to whom they should be given.
It is also a good idea to appoint a trusted individual as a digital asset executor. This person will be responsible for managing and distributing your digital assets according to your wishes. They should be familiar with cryptocurrency and have the technical knowledge to access and manage your digital assets.
Another important consideration is the security of your cryptocurrency. You should take steps to protect your digital assets from being lost or stolen. This may include using strong passwords and two-factor authentication, as well as storing your cryptocurrency in a secure wallet.
Finally, it is important to keep your cryptocurrency holdings up-to-date. You should regularly review your holdings and update your estate planning documents to reflect any changes. This will help ensure that your loved ones are able to access and manage your cryptocurrency according to your wishes. Handling cryptocurrency in estate planning is an important consideration for anyone who owns digital assets.
By taking the time to plan ahead, you can ensure that your cryptocurrency is distributed according to your wishes and that your loved ones are able to access and manage it properly. Call Hunter Sargent, PLLC today to learn more about estate planning with cryptocurrency.