Estate and Legacy Planning for Crypto Assets in Louisiana (2024) Estate and Legacy Planning for Crypto Assets in Louisiana (2024)

Cryptocurrencies can be highly volatile, but they are seen as a valid investment strategy by many. This means that they are appearing more frequently in estate plans so that these benefits can be passed on to an investor’s loved ones. Crypto must be documented in an estate plan so that it is accounted for during succession or the transfer of a trust. When considering your estate and legacy planning for crypto assets in Louisiana, speak to a cryptocurrency attorney.

Listing Crypto in Your Will

There is a designated section for wills that includes any property owned that is not explicitly mentioned. However, it is much easier to account for physical property than it is to find digital property after the wallet owner dies. This is why it is so important to outline your cryptocurrency in your will to prevent your heirs from losing access to it forever.

This becomes difficult when considering the public nature of a will. Succession is a public process, so anything included in a will could be accessed by anyone. To alleviate security issues that arise from providing credentials in a will, consider adding an additional document or memo that outlines logins, passwords, and other personal information for loved ones to access your cryptocurrency during succession.

Generally, individuals who own cryptocurrency may want to mention which digital wallets they own, as well as the computers and other devices with which they access them. If there are any passwords or logins stored on password managers, the links and passkeys for those should be outlined in the supplemental documentation, as well as the login to the wallet itself.

If your loved ones are not familiar with cryptocurrency, consider creating a guide to your assets with your attorney to explain these forms of assets to your heirs. Alternatively, if you have a high-tech friend or close relative, consider making them the personal representative of your will so that they allocate your digital assets accordingly.

Adding Crypto to a Trust

Similar to a will, a trust can alert your heirs to the fact that you have cryptocurrency, but there are additional benefits to a trust that a will cannot provide. There are a variety of different types of trusts that can affect your estate plan in different ways. Consult with an attorney to find the most appropriate trusts for your estate.

One benefit of placing your cryptocurrency in a trust is that it is more private. Trusts are not considered public record, so if you are hesitant to document your cryptocurrency in a will, a trust can be a good option. It is also a good idea to place more sensitive information like logins and passwords in a separate document for even more security over your assets.

Trusts can also help you avoid succession or shorten the time it takes for your loved ones to sort out your estate. Succession is often a long and time-consuming court process where your personal representative must pay creditors and allocate assets to heirs. It can get expensive when it comes to large estates. Placing your cryptocurrency in a trust allows it to be directly transferred to your desired beneficiary without having to go through succession.

Another positive aspect of a trust is that you have more control over the management of your assets. It can be a good idea to create a trust for beneficiaries who are inexperienced in cryptocurrency because you can provide additional guidance on how they should manage your assets. Assigning an experienced individual as your trustee can ensure that your cryptocurrency is managed correctly for your beneficiaries.

Whatever method you decide on for fitting your cryptocurrency into your estate plan, it can be helpful to contact an estate planning attorney to assist with the process. They can explain your options and assist with paperwork to make sure your assets are protected for your heirs and beneficiaries. An experienced crypto attorney can also help with other forms of digital assets, like NFTs and other blockchain technologies.

FAQs

Straightforward Legal Support for Cryptocurrency

Don’t let your cryptocurrency disappear. Proper planning via an updated estate plan is essential to give your relatives the tools they need to access your cryptocurrency and related wallets after you’re gone. An attorney who’s well-versed in cryptocurrency can help add these assets to your estate plan.

Schedule a consultation with Quantum Counsel in Jefferson Parish to learn how our unique experience in cryptocurrency can help your estate plan. We offer extensive knowledge and comprehensive legal guidance to the New Orleans metro area.