Integrating Cryptocurrency into Your NJ Estate Plan

Estate Planning is Crucial to Ensure Your Digital Assets Go to the Right People. Our Experienced Attorneys Can Help You Navigate This New Frontier.

Cryptocurrency has exploded over the last decade. It has burst onto the investment scene particularly among younger generations, with Bankrate reporting around 1 in 4 millennials owning the digital currency. A February 2024 poll showed that 22 percent of all American adults were planning to buy cryptocurrency within the month. With such a popular mode of investment on the rise, owners must take into consideration how they will include the digital investments in their estate planning. Who will get their digital assets upon death or incapacity? Given the highly secretive methods of protecting user information, how will access information and user instructions be passed on? Considering the safest way to include cryptocurrency in your estate planning process is of utmost importance, and the value of an experienced estate planning attorney privy to this burgeoning form of assets distribution cannot be overstated. Our lawyers are here to support clients in ensuring the security and smooth distribution of their hard-earned resources when the time comes. Call us today for a free consultation.

Safeguarding Your Digital Assets in the Age of Cryptocurrency

The rise of digital currency has necessitated that individuals engage new approaches to estate planning. The highly secretive nature of crypto account holder information, — owners are not identified by personal information, but instead whoever holds the key has access to account access and manipulation — makes the digital currency a vulnerable asset that must be protected using modern means. The traditional nature of estate planning, whereby an individual’s will is subject to a probate process that is on the public record, would render such highly sensitive account holder information at risk of being easily stolen. Evolved methods of protecting an individual’s information and making sure it gets into the desired beneficiary’s hands are of utmost importance and are a focus of qualified estate planning attorneys.

How NJ Estate Planning Adapts to Digital Currency

Cryptocurrency differs from traditional currency both in terms of storage and accessibility. Crypto is often stored in various online and offline wallets to protect them from being stolen. Access information to these various holdings, which provides any individual the capacity to move the currency, is protected according to the determination of the crypto’s owner, in any number of secure online or offline data storage spaces. An estate plan must reflect close consideration of the security of digital assets, providing access information only to the intended beneficiary or estate executor. If distribution of cryptocurrency is to be part of your last will and testament, any access information must only be disclosed in an attached memorandum, and not the will itself, which will be disclosed as public records during the mandatory probate process.

Another challenge regarding cryptocurrency is that its values are highly volatile, which can affect estate planning decisions. Like any volatile investment, crypto’s value can change on a dime. This makes it important to revisit your estate plan regularly to ensure that your wishes for asset distribution reflect the digital currency’s current value.

The Perils of Failure to Plan for Digital Asset Inheritance

There are some serious potential risks and consequences if a cryptocurrency owner fails to properly plan for a secure transfer of their digital assets upon death. If access information and instructions for use are not carefully considered, your account information could easily get into the wrong hands and be stolen. On the other hand, because personal information is not attached to cryptocurrency accounts, there is a risk that no one would know that you have digital assets or benefit from their value if you do not take specific steps to safely pass on that information. Because cryptocurrency is a type of digital currency that not everyone knows about or knows how to use, it is essential to include instructions for the benefit of your beneficiary and the survival of your valuable assets.

Wondering How to Address Cryptocurrency in Your Estate Plan in NJ? Contact an Experienced Rumson NJ Estate Planning Lawyer Today

An estate planning attorney at Bronzino Law Firm is primed to help you with this 21st-century element of securing your estate. We will walk you through the process of preparing for the distribution of all of your hard-earned assets, including digital currency. We will counsel you on whether a will or trust is the most appropriate means of disseminating your assets and ensure that your account information is both secure and accessible by the correct individuals. With our guidance, you can prepare for a fiduciary to effectively manage and distribute crypto assets after your death.

Our team is prepared to walk you through the process of preparing for the distribution of your valuable digital assets while making their security before and after your death the top priority. We have a stellar reputation for serving our clients’ needs in Sea Bright, Toms River, Jackson, Holmdel, Red Bank, Eatontown, Freehold, Sea Girt, Monmouth Beach, and across Ocean and Monmouth County, and look forward to protecting your financial legacy. Contact us today at (732) 812-3102 for a free consultation to discuss your estate planning needs.