Bitcoin, Ethereum, and other types of cryptocurrencies have made many savvy investors quite wealthy – and many of them have been able to keep their wealth secret. Unfortunately, the very thing that makes such currencies appealing can also endanger the wealth of one’s heirs. Learn how and why you should add your cryptocurrencies into your estate plan, and discover how a seasoned Illinois wills and trusts lawyer can assist with the process and mitigate any financial loss.
The Hidden Nature of Cryptocurrency Creates Issues for Heirs
Because the money is entirely digital, cryptocurrencies can be easily lost. In fact, there are stories about investors who have had to dig through their trash after losing their password and login information. Others choose to keep their currency stored offline, on a thumb drive. However, even this presents a problem in estate planning.
One cannot gain access to a cryptocurrency account if they do not know that it exists – and since most investors want their funds to stay private, most heirs do not have any knowledge of the account. Yet, even with knowledge of it, the heir cannot search for the account like they could a bank account or retirement account, and they would not receive notice from the Internal Revenue Service since the agency does not typically have knowledge of the account either. Thankfully, there is a way to protect your cryptocurrency wealth and your heirs from severe financial loss.
Adding Cryptocurrencies to Your Estate Plan
While you should definitely include every financial account to your estate plan, it is absolutely critical that you take the proper steps to ensure your cryptocurrencies are accurately documented and easily retrievable. One way to do this is to download your account to a thumb drive, offline, and then store it with your estate planning documents. Another is to ensure you include all details of your account into the estate plan and ensure it is safely stored (i.e. a locking safe). Some investors choose to do both, just to be safe. Either way, be sure that your heirs know where to find your estate plan and other pertinent documents.
Contact Our DuPage Estate Planning Lawyers
If you have not yet created your estate plan, or you need to add your cryptocurrency account to it to ensure your heirs receive all the wealth to which they are entitled, Stock, Carlson, Oldfield & McGrath, LLC is the firm to trust. Our seasoned DuPage County estate planning attorneys have over 40 years of experience in the industry, and we can assist you with developing a sound set of documents that protect your wealth and your heirs. Call 630-665-2500 and schedule your personalized consultation with us today.