How Do I Include Cryptocurrency in My Estate Plan?

You may have always considered yourself to be a savvy financial investor. With this, you may have recently invested in cryptocurrency, a digital currency designed to work through a computer network that is not reliant on any central authority (i.e., a government entity or bank) to regulate or maintain it. However, because this is an independent and intangible asset of yours, you may be nervous about what happens to it upon your unfortunate passing. If this is your biggest concern, please continue reading to learn how to include cryptocurrency in your estate plan and how one of the experienced Butler County estate planning & probate attorneys at Heritage Elder Law & Estate Planning, LLC, can help you do so effectively.

How do I incorporate cryptocurrency into my estate plan?

To reiterate, due to its unique characteristics, cryptocurrency may necessitate specialized estate planning. But the basic first step is still for you to craft a valid and enforceable Last Will and Testament document. Within this document, you must explicitly mention your cryptocurrency holdings, and then the specific beneficiary you wish to inherit it at the time of your estate administration.

Or, you may choose the path of a revocable living trust. Here, you may appoint a trustee and instruct them on how to properly manage and distribute your cryptocurrency holdings when the time comes. For example, you may direct them to hold it in the trust for a specific period or sell it to convert it into a fiat currency. This is, of course, in addition to naming the beneficiary who will ultimately receive it.

What information must I disclose about my cryptocurrency?

The appointed executor of your will or trustee of your trust may not be as knowledgeable about cryptocurrency as you. Therefore, your estate plan must include clear-cut directions on how they can even access this digital currency in the first place. Importantly, though, if you use a will document, it may not be in your best interest to include these instructions here. This is because your will must go through the Pennsylvania probate court and thereby be filed as a public record. You do not want this sensitive, personal information available to just anyone.

Due to these circumstances, we recommend that you create a Digital Access Guide to leave for your executor. This may work similarly to a Personal Property Memorandum. You may reference this guide as existing in your will document. Then, in your guide, you may disclose the digital wallet, website, or app in which your cryptocurrency is located. Then, add the login information required to enter this location. This should include your username, password, PIN, secret phrase, seed phrase, security question answers, privacy keys, and any other multi-factor authentication methods.

Nonetheless, if you are ready to get started on your plan, please retain the services of one of the skilled Butler County estate planning & probate attorneys as soon as you can. We at Heritage Elder Law & Estate Planning, LLC, look forward to receiving your outreach.