As the finance industry changes and more people invest in cryptocurrency, we’ve been getting legal questions about cryptocurrencies. Here’s what you need to know.
Understanding Cryptocurrency and Estate Planning
It’s never too early to start planning for your family’s future.
If you have questions, I’m here to help. There is no commitment and we provide free initial 15-minute phone calls. We look forward to meeting you.
Cryptocurrencies, such as Bitcoin, Dash, Ripple, and Zcash, are increasingly popular inclusions in detailed estate plans. The IRS views Bitcoin as personal property instead of currency for tax purposes, so there are some tax benefits for prudent investors who accumulate digital assets.
However, the introduction of cryptocurrency can create some issues. Bitcoin wallets are private since only someone with access to the wallet can gain access to its contents. If you pass away unexpectedly without a proper estate plan, your Bitcoin holdings and other digital assets die with you.
Whether you’re exploring your cryptocurrency options for the first time or you have an outdated estate plan, the attorneys at the Law Office of Paul Black are here to help. We can offer solid advice regarding cryptocurrency’s evolving legal landscape and help you prepare strong documentation that plainly communicates your wishes and upholds the security of your digital assets.
Benefits of Estate Planning for Cryptocurrency
Estate planning for cryptocurrency requires a balance between the need to keep private keys secret to protect the security of the digital currency while alive and the need to pass these private keys on so they don’t remain stuck in the blockchain after the investor’s death. As experienced attorneys, our law firm can help you find a solution that maintains this balance to ensure that your cryptocurrency can be appropriately passed on to your loved ones.
It is a process of preparing for how your assets and personal property will be transferred to others at the time of your death, with wills and trusts playing vital roles in the process. A Georgia will should be executed in accordance with stringent procedures that serve evidentiary, cautionary, channeling, and protective roles. In other words, requiring compliance with procedures helps make sure that a will is not tampered with and that the intent of the departed is effectuated.
There are many options and circumstances to think about when establishing an estate plan that protects your legacy and personal property in addition to meeting your cryptocurrency objectives. Crucial choices must be made with the guidance of experienced cryptocurrency attorneys. At the Law Office of Paul Black, we have the specialized skills, resources, and experience you need to make sure that your assets, both traditional and digital, are in good hands.
Our Cryptocurrency Estate Planning Services
With cautious preparation, you can protect your cryptocurrency assets and pass those assets on to successors through your estate plan. At the Law Office of Paul Black, our Atlanta asset protection lawyers work with clients to establish a reliable and secure access strategy for their cryptocurrency.
The following are a few of the cryptocurrency estate planning services we offer:
- Choosing an individual who can access the cryptocurrency. Ideally, this individual should have some knowledge about cryptocurrency and should not be a beneficiary of the estate.
- Composing an instruction letter for distributing the cryptocurrency that does not consist of any crypto keys, access codes, or seeds. This letter should instead contain the location and inventory of the assets and the list of hardware required to access them.
- Advising you on storing hard wallet backups in access-controlled areas in a water-resistant, fire-resistant container.
- Incapacity planning by including language in a Durable Power of Attorney supplying access to the cryptocurrency in case you become disabled.
- Dispersing the cryptocurrency through a will and naming the individual selected to access these assets on behalf of the estate.
- Placing the cryptocurrency in a trust to protect these assets and prevent the lengthy probate procedure from posing security risks and unnecessarily tying up assets.
The above list is not exhaustive. When you meet with our Georgia estate planning lawyers, our law firm can guide you through each of the ways we can help protect your cryptocurrency for your beneficiaries.