When cryptocurrency was first introduced, including your earnings from it in your estate plan was practically unthinkable. But today, many people in Pennsylvania and elsewhere have cryptocurrency wallets that are worth hundreds, or even thousands, of dollars. How can you pass this wealth along to the next generation?
Pass your cryptocurrency earnings along to your relatives
When you start planning your estate, you can include virtually any financial asset in your will. This includes cryptocurrency. While studies have shown that most crypto holders want to pass their currency along to their relatives, only 23% have actually included cryptocurrency in their estate plans. If you haven’t included your earnings in your will, they’ll be inaccessible — and unusable — after your death.
An attorney could help you include your cryptocurrency earnings in your will, allowing your friends and family members to enjoy the benefits of your hard work. Since cryptocurrency is still a relatively new industry, you may want to include instructions to help your family members access your earnings. Don’t assume that they’ll figure it out after you’re gone as not everybody is tech-savvy.
Studies have shown that younger generations are much less likely to include their crypto holdings in their wills than older generations. In fact, only 3% of millennials reported including their crypto holdings in their estate plans. Despite this, it seems that cryptocurrency isn’t going anywhere any time soon. If you don’t make it possible for your family to access your earnings, you could be shutting them out of a fortune. Talk to an attorney about including your cryptocurrency and other digital assets in your will.
What do you need to know about estate planning?
When it comes to estate planning, everyone requires a different strategy. You have a unique set of assets and beneficiaries that require personalized attention. That’s what you get when you hire an attorney.
Depending on the situation, a lawyer may suggest placing certain assets in a trust or gifting some of them while you’re still alive. He or she could also help you plan ahead, so you can qualify for Medicare while still keeping most of your assets.