Many people are choosing to invest in cryptocurrency to take advantage of high returns. They need to plan for how their loved ones will handle their accounts, after they pass away.
There are many very strong opinions about cryptocurrency, like Bitcoin, and their current markets. These new forms of digital currency are rising in value faster than almost any other forms of investment have in recent history.
Some people see this as a sign that these currencies are about to really take off and be the thing of the future. Other people are more likely to compare them to the tulip mania.
Regardless of opinions regarding what will happen to the value of cryptocurrencies in the future, the high rates of return have a lot more people investing in the markets than ever before. This, in turn, increases their value even more and brings more people into the markets.
However, these markets are very complex.
Consequently, estate planning for them is appropriate as the Wills, Trusts & Estates Prof Blog points out in “Letter to Loved Ones: A Template for Your Cryptocurrency Estate Planning.”
The most important thing is to not assume that your heirs will have any idea about what to do with cryptocurrencies. Despite their growing popularity, most people still do not own any cryptocurrency and as a result, do not know their value and even how to exchange the currencies for normal currency, such as dollars.
To overcome that, it is important in estate planning to leave instructions about how the crypto currency can and should be handled.
Reference: Wills, Trusts & Estates Prof Blog (June 12, 2017) “Letter to Loved Ones: A Template for Your Cryptocurrency Estate Planning.”