Times have changed. Look closely at the new kinds of property that technology has created.
Estate planning was less complicated in previous years with wills, deeds, investments, etc. However, in today’s world, intangible assets, such as digital property make it more complicated, according to Forbes in “Estate Planning for Crypto And Other Digital Assets: What You Need to Know.”
Technology has given us new kinds of property and new laws that govern them. However, some of the old rules still apply and you need a will. One thing that will needs to be naming, is an executor, who will be in charge of ensuring that your assets are distributed, according to the wishes you state in your will. When it comes to digital assets, things get a little tricky.
The hardest part of digital assets for many people, is how to give access to your digital property. The law has changed. If you own cryptocurrency, you’ll need to list your “crypto keys,” so your executor and heirs can know what is in your estate and be able to access it.
You may need to educate them, so they understand what the assets are, the location of the keys and access control that you use for security. You probably know access control as PINS, passphrases, multisignature or timeclock requirements.
The challenge is, if you die and no one has access to your cryptocurrency keys, your heirs may never be able to access them. They’ll need to know what exchanges you use (Bitcoin, Ethereum, and others) and a list of the digital wallets you own for each.
Most heirs want to sell the crypto property quickly, since the currency is volatile. No one wants to be criticized for losing substantive value in the estate, because they didn’t move quickly enough. They also don’t want to be brought to court, for failing to look out for the fiduciary interests of the estate.
You’ll need both the proper legal planning and technical planning.
Most states with laws about digital assets, have adopted a model that was written to include things that have not been invented yet.
Electronic signatures on wills, is another digital issue entering the estate planning arena. Most estate planning attorneys are not enthusiastic about this. However, the change is coming, says an attorney on the drafting committee of the Uniform Law Commission.
National College of Probate Judges President Tamara Curry says she expects that judges are going to have to get up to speed on crypto assets in the next three to five years, since courts will become inundated with estates that include crypto currency and other digital assets.
An estate planning attorney can advise you in creating an estate plan that fits your unique circumstances and will most likely include some of the new kinds of property.
Resource: Forbes (Aug. 14, 2018) “Estate Planning for Crypto And Other Digital Assets: What You Need to Know”