Houston Estate Planning and Elder Law Attorney Blog
Cryptocurrency, compared to other kinds of assets, is relatively new, and the legal landscape around cryptocurrency is still developing. How, then, do individuals with cryptocurrency incorporate the asset into their estate plan? There are several basic considerations that can be helpful to keep in mind when deciding how to make sure your cryptocurrency is well protected in the event of your death.
Ensuring Possible Heirs Have Access to Your Cryptocurrency
The first consideration for your estate plan and its relationship to cryptocurrency is access to the asset itself. If you are passing your cryptocurrency to your children, do they have a private key to access the cryptocurrency? Do they have access to your crypto wallet? Is there a plan to get your heir access if they do not already have it? These details are important to include in your Texas estate plan.
Deciding How to Categorize Your Cryptocurrency in Your Estate Plan
Your cryptocurrency could be viewed either as a tangible asset or an intangible one, depending on how you store it. If you keep your cryptocurrency offline, like in an external hard drive, a probate court would likely consider it to be tangible property. If you keep your cryptocurrency in online storage, a probate court would more likely view this asset as an intangible asset (similar to an investment or retirement account). For the online cryptocurrency, it is crucial to make sure no one besides your intended heirs has access to the password, because if others are able to use the cryptocurrency, this could complicate the transfer of ownership once the original owner dies.
How you categorize your cryptocurrency will help you determine how you want to incorporate the asset into your estate plan. You should thoughtfully consider all possible beneficiaries and ensure that your heirs are ready and willing to take ownership of the cryptocurrency that you are passing on. And, as always, you should speak with a qualified, trusted Houston estate planning attorney to help you decide what options might be right for you and your loved ones.
Are You and Your Family in Need of an Experienced Houston Estate Planning Attorney?
At McCulloch & Miller, we understand that you should not have to settle for any team but the best when it comes to your estate planning. Our group of Houston estate planning attorneys is well-versed in the legal landscape in Texas, and we are proud to have spent the past several decades serving our community. When you need specialized and empathetic legal services for you and your family, you need McCulloch & Miller by your side.
If you would like to set up a consultation with one of our Houston estate planning attorneys at McCulloch & Miller, give us a call as soon as possible at 713-936-9073. You can also fill out our online form to tell us about yourself to have a member of our team contact you about your estate planning needs. We handle matters related to estate planning, probate, trust administration, elder law, special needs planning, public benefits planning, and more.