Cryptocurrencies must be addressed in estate planning, too

| Sep 25, 2018 | Business Litigation

During the past year, cryptocurrencies, such as bitcoin, have created massive wealth for investors who trade them. Unfortunately, many of these investors in Massachusetts and elsewhere have not thought seriously about estate planning for these assets. Here is a glimpse at how to handle cryptocurrencies in estate planning.

Although cryptocurrencies are online, they cannot be likened to virtual banking accounts. This is due in part to the fact that cryptocurrencies are not cash but rather personal property. As a result, the Internal Revenue Service currently does not plan to send statements out to those who own them.

For this reason, it is critical that people keep track of their cryptocurrency and let their trustees or executors know that these assets exist during the estate planning process. In addition, they must develop trusted methods for passing on their passwords to their heirs, as otherwise, their children might not be able to access their cryptocurrency accounts when their parents pass away. Putting together a list of all important account numbers and relevant passwords, and storing it in a secure location, is generally a good idea for all asset owners, including cryptocurrency owners in Massachusetts.

For 100 years, we’ve helped people plan their estates, regardless of the types of their assets. Since 1918, the attorneys of Seder & Chandler have excelled at facing complicated and fast-moving legal issues, from complex corporate law, commercial real estate law, estate planning, to acting as counsel for law matters business and personal. Contact us today to learn how our combination of traditional commitments and adaptivity has given us a legacy of a 100 years.