You’ve always been rather speculative in your investments, so it’s no surprise that you were quick to acquire various kinds of cryptocurrency, like Bitcoin or Ethereum. Now, you’ve even added non-fungible tokens (NFTs) to your portfolio.
How do you make sure that your heirs benefit from your forward-thinking investment strategy if you’re not here to help them? Estate planning with digital assets like crypto and NFTs can be challenging. However, it’s necessary if you don’t want your legacy to vanish into a digital wasteland.
Information is everything when it comes to passing on digital assets
Everyone has heard horror stories about people who have lost the passwords to their digital wallets, leaving millions of dollars in assets locked away – forever out of reach. You don’t want your heirs to be in that position.
The solution is simple: You have to make sure that your heirs and/or the executor of your estate:
- Know that your digital currency and other digital assets exist in the first place.
- Know where to look for those digital assets, whether that’s on a specific crypto exchange or within a digital wallet.
- Know the information that will allow them to access those assets, such as the passwords or personal keys to your digital wallet.
It cannot be stressed enough that it’s important to keep track of your growing digital asset collection, along with the login protocols for each account. You may want to use an app that’s designed to safely track this kind of information or some other type of wallet. However, it’s crucial to make backup copies. You don’t want an accidental re-formatting of an old laptop to wipe all your hard-earned assets away.
Estate planning in the digital age is growing increasingly complicated, so make sure you have all the information you need to protect your family’s future.