Young adults often have a crypto account and a stock portfolio – but not will! Many people in their 20s and even 30s think they’re too young to need a will – but they don’t think they’re too young to invest in the stock market, cryptocurrency and other digital and paper assets.
Because cryptocurrency is a digital currency that uses encryption techniques to control the creation of monetary units (such as the US Dollar) and to verify the transfer of funds, it can be a way to have significant wealth for you and your family, but it also presents some challenges. You must think about securing, transferring, protecting and gifting that wealth now – or when you die. Having cryptocurrency, NFTs and your other digital assets in an estate plan will help protect your wealth today and for future generations.
Cryptocurrency can be accessed through a private key, usually a series of letters and numbers known only to you. Because of this, you typically have this secure information stored in a digital wallet. Have you thought about what happens to your digital and NFT wealth if you become critically ill, temporarily incapacitated or pass away? You have worked hard to build your portfolio. You don’t want it to be unfound or inaccessible
There is no reason to lose everything when you can easily designate your assets to your loved ones.
Creating a last will and testament is ideal for leaving your home, car, digital assets or other property to 1 or more beneficiaries. But a will goes through the probate court – which is expensive – and becomes public after you pass away (that’s the last thing you want with your crypto information!). A trust does not require a probate court, making things flow quickly and quietly. It is often beneficial to have both a will and a trust.
You need someone who understands your estate plan and how to protect all of your assets – including your digital and online assets. With your estate plan, you must also understand how the IRS taxes assets and inheritances, and how to minimize taxes for your beneficiaries. An experienced estate planning attorney can help you establish a trust to secure the future of your cryptocurrency. They can assess your unique situation and advise you on the best way to protect your investment and pass it to your beneficiaries.
Protect your cryptocurrency and other digital assets by consulting an experienced estate planning lawyer who can advise you on the best options for your situation. To talk to a qualified estate planning attorney in Chicago or Oak Brook, contact the Estate & Probate Legal Group at 630-864-5835.
We serve Cook, DuPage, Kane, Lake and Will counties.