Billions of dollars in wealth may be in jeopardy if crypto-assets are not included in estate plans. Experts say that when it comes to estate planning, cryptocurrency will need to be documented with proof of ownership and how heirs can access it. In Texas and elsewhere, the rise in the value of cryptocurrency has created quite a stir recently.
In the past, if someone were to die without a comprehensive estate plan, heirs would wait for financial statements to be received in the mail. Today, tracking banking and brokerage accounts has become more complicated over time because of online banking and investing. Email addresses and passwords are now necessary to access accounts, and cryptocurrency assets can go undetected without proper documentation. There is no paper trail, no bank statements or reported income to the Internal Revenue Service, and without an encrypted passcode, any wealth created may go undetected.
Net-worth statements can help ease the stress and worry. Many people keep a detailed list of financial information and instructions in a safe deposit box. Others prefer using aggregation software to secure account information as a backup and to share with heirs. Experts suggest a written and electronic version, such as a flash drive, for storing accounts information offline.
With the increased risk of hackers trying to access crypto-assets, detailed cryptocurrency documentation is essential when estate planning. To avoid having loved ones left wondering what happened to the crypto wealth, benefactors need to include specific passcode information about their holdings. In Texas, a seasoned attorney can help prepare the necessary documents so that a lifetime of acquired wealth does not disappear.
Source: cnbc.com, “That fortune will be lost if you don’t add cryptocurrency assets to estate plan“, Barry Glassman, May 1, 2018