So You Own Cryptocurrency? You Definitely Need an Estate Plan

August 13, 2020

Has it been 10 or 20 years since you last updated your will or know that you created a trust at some point that was revocable but aren’t exactly clear on its terms? The emergence of bitcoin and cryptocurrency as well as plenty of digital assets that might be a part of your current estate means that you need to take a look at these older documents and discuss your options with an estate planning lawyer.

An estate planning lawyer can help you to craft a customized plan. Right now, Congress is holding hearings on the digitization of the dollar, which means that as a financial tool, cryptocurrency is front and center in becoming more and more important. To avoid making your heirs question whether or not you owned any cryptocurrency or worse, digging through the trash or looking at every computer you own to try to find this information, make sure that you preserve the benefits of cryptocurrency and have an established plan in place to ensure that your intended heirs are able to receive it.

Cryptocurrency is much like cash and that it is not traceable. There is no paper trail or electronic trail connecting it together to make it easy for your estate administrator to find out you were involved in a transaction involving cryptocurrency. In order to maintain that privacy as part of your estate plan, you’ll need to ensure that other transaction documentations do not reveal identities. With the right seed phrase or private key any person can access the cryptocurrency so make sure that you log this information but maintain it as carefully as possible.

 


Practice Areas:



Schedule your free Exploratory phone call

Click here to see how we
can be of assistance.

Payment Portal
for Tax and Accounting invoice

This link offers a secure, quick way to complete your payment with Omni360 Advisors LLC.

Our Social Media

Connect with us on Social Media using the following buttons:

Visit our Podcasts

Listen in, Join the Conversation!

Recent Posts

Navigating the Step-Up in Basis: Core Rules, Critical Exceptions, and Strategic Benefits for Families and Business Owners

For many families, business owners, and high-net-worth individuals, one of the most valuable—but often misunderstood—tax concepts in estate planning is the step-up in basis. While discussions ...

<p>The post Navigating the Step-Up in Basis: Core Rules, Critical Exceptions, and Strategic Benefits for Families and Business Owners first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>

New State Retirement Plan Requirements for Small Businesses in New Jersey and New York

Small businesses in New Jersey and New York may face new retirement plan compliance requirements in 2026. Learn who is affected, key deadlines, and important ...

<p>The post New State Retirement Plan Requirements for Small Businesses in New Jersey and New York first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>

Understanding the K-Shaped Economy: Why Portfolio Diversification Matters More Than Ever

Learn what a K-shaped economy means, how it affects investors and business owners, and why maintaining a diversified portfolio may help navigate an increasingly uneven ...

<p>The post Understanding the K-Shaped Economy: Why Portfolio Diversification Matters More Than Ever first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>