There are many complex challenges around the prospect of owning cryptocurrency as it relates to how it can influence your estate plan. When it comes to transferring, protecting, gifting or securing the wealth generated through cryptocurrency, you need the support of an experienced estate planning lawyer to help you organize it.
Digital assets in the realm of estate planning have evolved as of late and more people than ever are aware of the potential challenges with digital assets. But now that the market for cryptocurrency is above $1 trillion, it becomes even more important to consult with your lawyer about these issues.
Estate planning may appear problematic on first look when it comes to cryptocurrency’s decentralized systems. When you put it into the context of planning for multiple generations or succession planning in a business, you’ll need to consult with an attorney who has experience in this field. Asset diversification through cryptocurrency might require you to create a comprehensive and secondary plan for estate planning purposes. This is because cryptocurrency is only accessible through a private key stored in a digital wallet.
Anyone who has access to the key can use, sell or buy the digital money, which means that it is very possible that it could be stolen or used inappropriately. In these circumstances, one of the best things you can do is to consult with an experienced and knowledgeable lawyer to discuss your next steps.
Talk to our Pasadena estate planning office for more individualized support.