Thinking about the possibility of death is generally not anyone's idea of a favorite pastime. However, estate planning is critical for anyone who owns assets in Florida. It is especially important for those who have jumped on the cryptocurrency bandwagon, which is picking up speed around the globe.
The quick increase in cryptocurrency's value has recently made some investors very wealthy. However, their millions or billions of dollars in cryptocurrency-related wealth may easily disappear if they do not list these assets in their estate plans. It is critical that the owners of these types of assets first store their pass codes in digital wallets or on smart thumb drives. It's equally important to let loved ones know where to locate this information when the time comes to do so.
It's also important to document ownership of these assets as well as where they were purchased. Listing how their heirs can access these assets is also paramount. These steps might seem counterintuitive considering that many bitcoin asset owners purchase this type of asset because they value its secrecy. The problem, though, is that if they die unexpectedly, their loved ones may never know they have this secret stash unless it is spelled out in their estate planning documents.
Estate planning can understandably be a complicated process, especially when cryptocurrency is involved. However, an attorney in Florida can help create a carefully crafted plan even in the most complicated of financial situations. The attorney's goal is to produce a plan that accurately reflects the estate owner's needs, wishes and best interests, as well as those of his or her loved ones.
Source: CNBC, "That fortune will be lost if you don't add cryptocurrency assets to estate plan", Barry Glassman, May 1, 2018