Millions of dollars have been lost in estate plans because heirs weren’t aware of digital assets.
Despite the fact that virtual or digital currencies have grown very popular with billions of dollars owned worldwide, a problem has arisen because most people have little or no knowledge of the currencies or how they work.
Most digital currencies are held anonymously with the owner holding unique passkeys stored online in central databases or stored offline on computer drives, according to Lexology in "Every Day is Bitcoin Pizza Day: What Clients and Estate Planners Need to Know about Virtual Currencies."
So, what does this actually mean?
People who use virtual currencies need to be sure they talk to an estate planning attorney about their holdings.
It needs to be clear in an estate plan what currencies are held and where to find the passkeys.
It should also be clear who is to inherit the crypto currency holdings.
An estate planning attorney can advise you on creating an estate plan that fits your unique circumstances, which may include virtual or digital assets.
Reference: Lexology (Sep. 6, 2017) "Every Day is Bitcoin Pizza Day: What Clients and Estate Planners Need to Know about Virtual Currencies."