Creating an estate plan is an essential part of passing down your legacy. You have worked hard to build your life, and your estate plan allows you to share the fruits of your labor with your loved ones.
Now that cryptocurrency is becoming a more popular investment, it is essential to make sure that you include it in your estate plan. Since cryptocurrency tends to be volatile, it can be challenging to know how to handle this asset as you plan for the future.
Here’s what you should keep in mind when you have cryptocurrency to include in your estate plan.
If it is not in there, they won’t know
Depending on how you purchased your cryptocurrency, your loved ones may not know that you have it or how to access it. In some cases, cryptocurrency is stored on one specific computer, so if your cryptocurrency is not in your estate plan, your loved ones may not know to look for it.
When you have cryptocurrency, it is essential to include it in your estate plan, along with directions for how to access it. In some cases, even with your user information, loved ones may not be able to access cryptocurrency assets if it is not specifically spelled out in your will.
NFTs are similar to cryptocurrency
While NFTs have been around for several years, they have had a recent surge in popularity as more people learn about these interesting assets. NFTs are part collectible and part currency.
Since NFTs have their roots in the same blockchain technology that supports cryptocurrency, they have the same decentralization characteristics. However, since NFTs are also considered one-of-a-kind assets, their value can fluctuate significantly after you purchase them.