August 29, 2014

As virtual currencies like Bitcoins become more popular, even the IRS has recognized the possible value in these assets. As the owner of any kind of digital asset, you should also be aware of how to properly include these in your estate plan. Along with this goes avoiding one of the most common mistakes made with digital assets: failing to tell your beneficiaries about them.

Other kinds of assets, like stocks, bonds, real estate, and retirement plans have been part of the estate planning arena for so long that planning attorneys and trustee administrators are well versed in how to deal with them, even when beneficiaries are not entirely clear of their existence or worth. They also tend to be easier to hunt down if necessary, but the virtual world can be complex and heavily password protected.

With digital assets, it’s different. Unless somebody knows you’ve got these assets, it’s very likely that none of your heirs will ever gain access to them. It’s most likely that this wasn’t what you intended. So make it clear: if you’ve got someone in mind that you would like to take over your digital assets, tell them about it. Better yet, communicate it to your estate planning attorney as well to limit any confusion and to ensure that you have covered all your bases. For a comprehensive estate planning consultation, contact us today by email info@lawesq.net or via phone at 732-521-9455.