Can I Include Cryptocurrency in My Estate Plan?
If you or someone you know has invested in cryptocurrency you may wonder if it’s possible to include this type of digital asset in your estate plan. The answer is yes, but with careful advanced planning. The unique nature of cryptocurrency and its ease of anonymity creates the primary obstacle to the effective transfer to decedents, however, it is still possible.
What is cryptocurrency?
A cryptocurrency is a form of digital currency that uses cryptography instead of trusted third parties like banks to facilitate peer-to-peer transactions. There are more than 10,000 different types of cryptocurrencies, including the better-known Bitcoin and Ethereum varieties.
Cryptocurrencies as a whole are valued for enabling irreversible transactions anywhere in the world with low fees and near-instant settlement. Cryptocurrencies are transferred at a much faster rate than traditional currency and are available throughout the world without the need for converting to a particular country’s currency.
I have purchased cryptocurrency. Can I include it in my estate plan?
Yes, it is possible to include cryptocurrency in an estate plan since it is considered personal property, and as such can be an asset of a decedent or an estate. It must be held in a transferrable form, such as a digital wallet or within a trust. Those who hold their cryptocurrencies in a digital wallet should be sure to include a way for their heirs to access the account.
Help is available
The estate planning attorneys at O’Reilly Rancilio are available to answer your questions regarding cryptocurrency and estate planning. For more information, call 586-726-1000 or visit our website.