Planning for the future in New York and elsewhere can understandably be quite complex. This is especially true for those with financial assets and other assets they wish to pass down to loved ones in the future. However, making things even more complicated when it comes to putting together wills is the growing demand for cryptocurrency.
For those who have accounts with major financial institutions and banks, they can easily obtain balance statements from these institutions, and they can rely on customer service representatives to help them as needed. However, cryptocurrencies are a completely different story. They do not produce reports or statements to send to the Internal Revenue Service, and the owners of these types of assets cannot call a customer service phone number for assistance.
In other words, everything associated with cryptocurrencies is intentionally designed to fly under the radar. The benefit of this is that privacy-loving consumers can keep their cryptocurrency assets incognito. However, the disadvantage is that heirs cannot access these assets unless they are given encrypted passcodes to unlock the cryptocurrency accounts. Without such passcodes, unlocking the accounts is virtually impossible, and for those with millions or even billions of dollars’ worth of these currencies, that can mean a major loss for future generations.
This is why estate planning, including the creation of wills, is so critical. Planning ahead ensures that the intended beneficiaries of cryptocurrencies and other assets can access these valuable items when the asset owners pass away. An attorney in New York can provide the guidance needed to create well-thought-out estate plans that reflect one’s wishes and best interests long term.
Source: cnbc.com, “That fortune will be lost if you don’t add cryptocurrency assets to estate plan“, Barry Glassman, May 1, 2018