How to leave crypto currency in your will
Crypto currency has seen a large rise in ownership as investors are finding high returns in it. With this increase in wealth more people are seeking to pass on their digital form of currency to beneficiaries after their death. Adding crypto currency is possible, but requires more steps than traditional assets.
Traditional assets vs. crypto assets
Cryptocurrency is different from traditional assets that are added to a will or estate plan. Traditional assets have physical records attached to them. These records are usually backed up by death certificates and letters of testimony when someone dies. This allows the beneficiary to get control of the account. Crypto however is different. It does not require proof of death to be transferred. It only requires the descendants passcodes to transfer the crypto account. Be careful who you give these passwords out to, because crypto accounts can be managed or altered with little oversight.
5 steps for leaving crypto in your will
Hire an attorney– The right attorney should have no problem incorporating cryptocurrency into estate plans or wills.
List your Crypto– Any crypto not listed in the will could be subjected to forfeit or residue. This means it will go to probate court. This is why it’s important to clearly describe where your crypto can be found in your will.
List your digital wallets– When one invests in cryptocurrency. They must go through some sort of broker. When listing your crypto in your will also mention what broker you use and how to access these funds.
Create a Memorandum- Do not include and pin or passcodes for wills that are going through probate. Once a will goes through probate it becomes a public record. This is why any sensitive information should be put on a memorandum. This is separate from the will and can be changed at any time. A memorandum should include a list of digital wallets, website names, and ways into the account.
Create an access guide for your crypto- Create a guide so that others can find and access your crypto accounts. This eliminates any confusion left to your beneficiaries.
Tips when putting cryptocurrency in your will
Do not include passwords or pins as your will could be subjected to probate. This would then be put on public record. When you add your crypto account to your will, make sure you trust your fiduciary and make sure they can handle the electronic side of it. Make sure to update your memorandum when you are to change the password or pin to make sure your beneficiaries can access your accounts after you pass. Leave a guide to help your beneficiaries find out how and where your crypto is kept.