The last year has seen an explosion of digital-based assets that have led to many people accruing some significant wealth. Whether it was Bitcoin, Ethereum, DogeCoin, or the next big NFT (Non-Fungible Token) there are some serious questions being raised about these forms of wealth and currency. For us though, the focus is on how they impact your estate plan.
In a US News article by Emma Kerr, she looks at how people and estate planners are beginning to tackle these digital assets.
The market of digital assets is estimated to be worth more than $1 Trillion.
The main point of many of these assets is that they are very unique and very private. Once someone owns some form of a digital asset it’s next to impossible to “steal,” and I put steal in quotation marks because the stealing of a digital asset is much different than nicking a $20 bill from someone’s purse. These online assets are protected by private keys, a series of numbers and letters known only by the owner of the asset.
What does this mean for estate planning though?
Well, one of the very important aspects of the plan doesn’t change...tell a family member or a loved one about it and how you plan to distribute these assets!
You can then put these digital assets and private keys into a Trust and name a trustee. If you are extra worried about security, you can even split up the private keys to multiple people to ensure it stays extra safe. Make sure you also have written out exactly what your wishes are and who should carry them out by a lawyer who specializes in estate planning. Make sure to consult a professional, estate planning can be a very confusing process and there can be dire consequences if done incorrectly, even without the implementation of digital assets.
Want to learn more about estate planning and how we can protect all of your assets, even digital? Book your Strategic Planning Session today by clicking here or give us a call at 978-657-7437.
Not ready to book a session but still want to learn more? No problem! Download Attorney Michael Monteforte's FREE book on estate planning, Planning Ahead, here.