Estate planning is complicated, and crypto assets add a new layer of complexity to the process. Unlike traditional assets, these are much more volatile, decentralized, and dependent on secure digital storage. So, how will you ensure they are effectively managed and transferred to your heirs?
You’ll find the answer in this article. We’ll explore various strategies on how you can include crypto assets in your estate plan. This will help you understand how to safeguard your digital wealth and ensure a smooth transition to future generations.
How to Include Crypto Assets in Your Estate Plan?
Below are 5 key strategies to properly add crypto assets to your estate plan:
1. Document Your Holdings
Create a detailed list of all the crypto assets you own and their specific locations. While it’s not recommended to add passwords and private keys in this document, you should still add some instructions on how to access the digital assets.
2. Assign Your Beneficiaries
Next, you have to identify your beneficiaries. Who will inherit your crypto assets? This is a personal decision, but it is crucial to properly document how the assets will be divided. And more importantly, you need to inform the chosen individuals about their inheritance.
Remember that without proper communication, crypto assets can be lost forever. Therefore, your beneficiaries should have the basic knowledge of how to access or manage them.
3. Consult with Professionals
Once you have figured out everything from your end, it’s time to consult with a professional who specializes in estate planning. Their experience in handling crypto assets can provide insights and assistance in securing and transferring your digital wealth.
It’s an important step because, without the help of a knowledgeable estate planner, you can miss small details and risk losing your assets.
4. Create a Will or Trust
Your estate planner can also help you create either a will or a trust. Both these legal instruments serve the purpose of outlining your wishes regarding how the assets should be managed and distributed after your death. The only difference is that the will goes through probate, while a trust generally bypasses this process.
5. Regularly Update Your Plan
Crypto assets are highly volatile, and your portfolio should be updated to reflect the fluctuations in value over time. Additionally, you should also consider the changes in your personal life that might require readjustments to how your assets are distributed among your beneficiaries.
Hire Professionals!
It’s extremely crucial to include crypto assets in your estate planning. And it’s equally important to consult with a professional who specializes in this niche. Their expertise will help you ensure that your digital assets are appropriately accounted for, securely managed, and smoothly transferred to your heirs.
If you’re struggling to find the right person to talk to, just contact us! The experts at WGS Law are waiting to offer you legal advice that secures your financial legacy for the future. Schedule a virtual consultation right now.
