Crypto is everywhere in the online digital space. People are constantly encouraged to “invest in crypto.” Several types of digital currencies are being added to our portfolios as digital assets. What exactly happens to your digital assets when you’re no longer around? If you’re nodding your head (or even if the thought just piqued your interest), you’re in the right place. There are ways to secure one of your most valuable digital assets (even if you don’t entirely realize it yet).
Understanding Digital Currencies and Estate Planning
Definition and Importance
Bitcoin, Dogecoin, and the myriad of other floating currencies out there, are a bit of a wild card. Unlike a traditional stocks or savings account, they don’t live in a bank account or have an easy, accessible paper trail for you and your family to easily follow. These currencies exist in the digital ether, accessible only by those who hold the keys (literally). All of this makes these digital currencies a bit hard to get a handle on when it comes to estate planning.
Current Trends in Digital Estate Planning
Everything is done online today; from 3d-printed digital downloads, to movies, to managing money, practically everything is completed online.
This also includes digital currencies being used in the digital space.
The Challenges of Bequeathing Digital Currencies
Technical Challenges
Including digital currencies into one’s Last Will and Testament can be a bit of a pickle, because people don’t often think about their digital assets when it comes to estate planning: people don’t think about including their digital assets into their Wills. So if you pass away unexpectedly, its important to know how to access your digital assets so that they can easily be passed onto your family members.
Legal and Tax Implications
Navigating the legal jungle of digital currencies can be a headache. Digital currency isn’t that well-regulated; there are laws governing the usage of such currency that vary by jurisdiction.
Step-by-Step Guide to Including Bitcoin in Your Will
Inventory Your Digital Assets
First things first, make a list of your assets. A proper inventory of everything, including your digital assets. This means a thorough inventory, and not simply something that’s scribbled onto a piece of paper. An actual, written-down list of your digital assets. Think of it as a treasure map for your loved ones.
The Executor with the “right” stuff
Choosing someone to handle your digital assets isn’t as simple as picking your most tech-savvy friend. You need someone who understands the value and can navigate the complexities of digital currencies. This may prove difficult, as Bitcoin is still relatively new, so you may want to hire a financial advisor to help you along the way.
Secure Storage and Instructions
Once you’ve cataloged your assets and chosen your Executor, it’s time to secure your information. Whether or not your physical and digital assets are safely wrapped up in a safety deposit box or a secure digital storage solution, make sure your Executor fully understands how to access everything. Again, this may require the assistance of a financial or estate planner. Someone who can help you along the way.
Legal Formalities
This is where things get official. You may want to talk to an Attorney who knows the ins and outs of digital currencies. They can help you navigate complexities in your Will. You don’t need an Attorney, but the option is there, if you require legal advice.
Tools and Resources for Digital Wills
Digital Will Services
Believe it or not, there are services out there that specialize in digital Wills: these platforms can guide you through the process of including Bitcoin (or any other digital currency) into your estate plan. This helps smooth out the whole process.
Software and Apps
In today’s world, there are always apps and new types of software being developed to help keep track of your digital assets. These tools can be a godsend for organizing everything in one place.
Ensure that no stone is left unturned.
Future Considerations and Advice
Evolving Legal Landscape
The world of digital currencies is ever-changing, and so are the laws surrounding them. It’s still a bit like the Wild West; the laws on these currencies are still relatively new, just like the currencies themselves. Again, try to stay informed and do your research. Consultation with a professional (if you need it) is always advisable. This cuts down on any headaches for your loved ones.
Periodic Review and Update
Just like you’d update your wardrobe (goodbye, bell-bottoms), it’s crucial to regularly review and update your Will (and estate). This ensures that any new digital assets are included and your estate plan with the digital times.
Conclusion
Including Bitcoin and other digital currencies into your Last Will might seem like a laborious task but it’s a necessary one. it’s a crucial step to take today. By securing your digital legacy, you’re not just protecting your assets; you’re making life easier for your loved ones and ensuring your digital treasures don’t get lost in the ether.
