Integrating Crypto into Your Estate Plan – Shaw Local
Estate planning and cryptocurrency systems are like oil and water; they do not mix. Indeed, cryptocurrency is a new asset class that most people don’t understand, including many lawyers and financial advisors.
However, with the recent increase in interest and media coverage of Bitcoin and other digital currencies, more and more people are asking questions about how to include crypto in their estate planning.
The first step is to understand what cryptocurrency is and how it works. Cryptocurrency is an exchange of digital or computer-generated money that uses cryptography as a security measure. Cryptocurrencies are not subject to government or financial institution control, so prices can differ significantly in value at any given time.
In 2009, bitcoin cryptocurrency was created as the first of its kind. Since then, other cryptocurrencies like Ethereum, Litecoin, and Monero have become increasingly popular.
Cryptocurrencies are stored on digital wallets like Coinbase and can be used to buy goods and services or trade them on cryptocurrency exchanges. Cryptocurrencies are often traded on decentralized exchanges, which means that no central authority regulates the market.
Investing in cryptocurrency is speculative and risky, but can also be incredibly lucrative. For this reason, it is essential to think about how you want to manage your crypto assets in the event of death.
When it comes to estate planning, there are a few key things to remember. First, cryptocurrency is an asset that you can pass on to heirs. Second, cryptocurrency is subject to inheritance and gift tax. And finally, it is crucial to have a plan in place in case cryptocurrency is lost or stolen.
When incorporating crypto into your estate plan, the best thing to do is consult with a lawyer or financial advisor familiar with the asset class. They can help you determine the best way to structure your assets in the event of your death.
If you have any questions about incorporating cryptocurrency into your estate plan, please contact Camden Law at 630-568-6656. Our experienced attorneys serve our Chicago community in Downers Grove, Naperville, Hinsdale, Oak Brook and surrounding areas with these complex issues.
Camden Law Firm
5330 S. Main Street
Downers Grove, Illinois 60515