Should You Add Bitcoin to Your Estate Plan?
Even though many people may feel uncomfortable planning for death, it's an important thing to do, especially for your loved ones. In the absence of an estate plan, property will be divided based on state intestacy laws, which could result in your assets going to people you don't want them to go to, and it can be a hassle for your loved ones.
Assuming that you've decided to plan your estate, you may wonder what you should include. Well, the more detailed you have, the better. And, if your property changes -- maybe you added new investments, such as Bitcoin -- it's best to add that to your estate plan as well.
It's All in the Details
Probate issues can easily become overly complicated because family members often end up fighting with each other over their deceased relative's assets. To avoid this, it's important to be as detailed as possible in your estate plan, both in listing beneficiaries for particular items or sums of money, and making sure to list all of your assets. This includes any investments, such as real property, stocks, or Bitcoin.
When it comes to Bitcoin, or other types of cryptocurrency, it's important to be a little more detailed than you may be with other property. For example, when you have an investment account at a bank, it'll list the particular stocks you have in your portfolio and will usually allow you to designate a beneficiary. The nature of cryptocurrencies is secretive, so it can be much more difficult to get access to it once the investor dies. For this reason, it's important to not only list that you own Bitcoin, but also list where it was bought and how it can be accessed.
Show You Care
It's hard enough to grieve the death of someone you love, but also trying to sort through his or her assets, and possibly deal with greedy relatives, can make it unbearable. So, show your loved ones you care about them by planning your estate, or updating your estate to include any new assets. And, if you don't know where to start or need professional help to plan your estate, you can contact a local attorney who can guide you through the estate planning process and make sure you have a solid estate plan.
Related Resources:
- Find an Estate Planning Lawyer Near You (FindLaw's Lawyer Directory)
- Estate Planning (FindLaw's Learn About the Law)
- Digital Estate Planning: How to Prepare Digital Accounts for the End of Life (FindLaw's Law and Daily Life)
- Bitcoin and Estate Planning: Top FAQs (FindLaw's Law and Daily Life)