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Colorado estate planning for people with cryptocurrency

On Behalf of | Sep 4, 2021 | Estate Planning |

Cryptocurrencies like Bitcoin or Dogecoin are popular as an investment opportunity. Generally, it is a secure way to pay for goods or services, and companies are increasingly accepting cryptocurrency as a form of payment.

If you already own or want to invest in cryptocurrency, do not forget to address these assets in your estate plan. Failing to do so might result in the loss of these potentially valuable assets.

Why is it so vital to your estate plan?

Many people believe that cryptocurrency will one day become one of the main forms of currency. Whether you believe this or not, cryptocurrency is valuable right now. If you own any, you should address it in your plan for the following reasons.

Lack of regulations: Currently, the laws have not yet caught up with the cryptocurrency rage, which means it is impossible to predict what will happen to your crypto after you die. However, by addressing it in your estate plan, you get to decide how these assets will be divided among your heirs.

Blockchain technology: This is a method of recording data so that it cannot be hacked or changed. However, blockchain technology means entering a private key for each asset. Including these private keys in your estate planning documents makes it possible for your heirs to access and use the cryptocurrency after your death.

Probate issues: Even if you tell your family about your crypto accounts and provide them with your private keys, you should still address them in your estate plan. Doing so may help your heirs avoid a long and drawn-out probate process.

It’s wise to learn more about estate planning, especially if you own cryptocurrency or other nontraditional assets that you want to pass on to your heirs.