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4 Steps To Include Cryptocurrencies In Your Estate Plan

Steps to Include Cryptocurrencies in Your Estate Plan

The enthusiastic participation from around the world has produced faith in cryptocurrency, enticing investors to put away their cash in these digital currencies, including Bitcoin, Ether, and brain trust crypto. Crypto, nevertheless, is different compared to other sources of wealth when it comes to a person’s estate and tax management. It can always be used as a component of your estate plan.

So, if you’re planning on leaving your estate to your loved ones, it’s important to know how to leave crypto in will. Not only are they becoming increasingly popular, but they also have a lot of potential as an asset class.

With that in mind, this blog will discuss the challenges of estate planning for including cryptocurrencies, the benefits of having them in your estate plan, how to leave crypto in your will, and what happens to them if you hold them in cold storage. Finally, it will provide tips for keeping track of your cryptocurrency and NFTs and the benefits of having an estate plan for crypto!

What is Cryptocurrency?

Cryptocurrencies are digital or virtual currency that use cryptography to secure their transactions and control the creation of new units. Since they are based on blockchain technology, it’s difficult for governments or banks to interfere with their circulation or value.

Cryptocurrencies are also often traded on decentralized exchanges, making them more accessible to the average person. It is the reason why answering the question “Can you put crypto in your will?” is becoming increasingly popular these days.

However, it is imperative to consider appropriate methods carefully when understanding how to leave crypto in your will.

Key Statistics

  • Only 23% of the 1,150 cryptocurrency owners who participated in the online survey by the Cremation Institute between October 2019 and June 2020 reported having a written plan for distributing their crypto assets in the event of their death. However, 89% of participants are concerned about not having a crypto will and whether their loved ones will inherit their crypto assets or not.
  • Interestingly, younger generations tend to lack planning the most. According to the survey, Millennials and Gen Zers are ten times more likely than their elders not to have a crypto inheritance plan. Only 3% of those 18 to 34-year-olds who reported having a will said it addressed the topic of crypto in will.
  • Will doesn’t seem to be a common way for anyone, including baby boomers, to record their cryptocurrency plans. The survey found that “instructions” were much more common, with 65% of those planners hiding their cryptographic instructions within the home, 17% keeping them on a computer or USB device, and 2% keeping them in a safe deposit box.

Estate Planning for Cryptocurrency

Leaving crypto in will and questions like “Can a trust own crypto currency?” is becoming increasingly popular because they’re unique investment opportunities that can offer high returns. As such, it’s important to include them in your estate plan. There are several different cryptocurrencies to choose from, so it’s important to understand the type that’s right for you.

Additionally, ensure that your estate plan includes a detailed description of how you want your cryptocurrency to be distributed. Also, consider whether a cryptocurrency will be treated like other assets in your estate plan and map out a transfer strategy if necessary.

Why Adding Cryptocurrency To Your Estate Plan Matters?

Cryptocurrencies are still relatively new, and their value constantly fluctuates, making them volatile assets. That being said, they’re worth including in your estate plan. Why? Here are a few reasons:

  • Because it ensures that your assets are distributed correctly and fairly and that you have a plan in place for them should they be worth more or less when you die.
  • Additionally, cryptocurrencies can be used to help diversify your portfolio, giving you the best chance for long-term success.
  • While cryptocurrencies are still relatively new, their potential is huge, and their value will only grow in the coming years.

So make sure that you include your crypto assets in your will and estate place; it could be the best decision you ever make!

Keep Track of Your Cryptocurrencies and NFTs

It’s important to keep track of your cryptocurrencies and NFTs so you can make the best decisions for your estate planning.

A crypto estate plan will make it easier for your loved ones to access your assets and manage your estate in the event of your demise. It’s also important to keep track of the value of cryptocurrencies, and NFT’s so you can sell them off if required to meet estate taxes liabilities.

Finally, if you’re an individual investor, ensure you understand cryptocurrency taxation in the US before investing.

What are the Benefits of an Estate Plan if I Own Cryptocurrency?

Benefits of an Estate Plan

Estate planning and cryptocurrency go hand in hand because cryptocurrencies are hot property due to their numerous benefits. Here is how cryptocurrency is a valuable asset in estate planning:

  • Cryptocurrencies can provide tax benefits, excluding capital gains taxes.
  • By assigning a digital asset to someone who will maintain custody, you ensure they have access to it after you die.

So, whether you’re planning to hold onto your cryptocurrencies long-term or want to ensure your heirs have access to them, incorporating them into your estate plan is a good idea.

How do you put Cryptocurrencies in a Will?

These digital assets offer several unique and valuable benefits to help estate planning. For example, putting crypto in will can help ensure that your loved ones inherit them. But you don’t need to be an expert in cryptocurrency as plenty of online tools are available.

Just be sure to take care when including them in your estate plan, and ensure the digital assets are properly recorded and managed so they can be easily transferred upon death. Finally, put crypto in will if you want to ensure your loved ones inherit them.

It might not be as simple as adding physical assets to your Will and Testament. It may require legal assistance, which may require some action on your part. Here are a number of recommended steps:

  1. List crypto in will as part of a list of assets to be divided and have each section name cite the cryptocurrency section inside your will.
  2. Write down the digital wallet codes for all currencies you use.
  3. Record these data in a shared document, with the usernames and passwords eclipsed behind a block of text and your PINs concealed at the end of each sentence. Make sure to keep this memorandum in a safe place so only you and someone trusted know where it is.

  1. Cryptocurrency can confuse your heirs. So having an in-depth overview may assist them.

Placing your cryptocurrency in a will can be a complex process. A lawyer may help guide you through the process to ensure you have all the details.

What Happens to Crypto Held in Cold Storage?

Cryptocurrency stored in a cold wallet is kept on physical devices such as portable hard drives, cell phones, and flash drives. Cold storage wallets protect a cryptocurrency from cyber-attack and unauthorized access.

When you add crypto in will or Crypto trust, you can appoint an executor to determine how the contents of the cold storage wallet will be distributed among your heirs.

However, a cold storage device or wallet may easily get misplaced or lost, losing the crypto stored there. So, it’s crucial to identify cold storage solutions in your will or estate plan.

Keep in mind a few points if you want to include crypto in your estate planning:

  • For starters, consult an estate planning attorney to get advice on the various factors that must be considered.
  • If you’re planning on holding your crypto in cold storage (offline), keep copies of your private key(s) and proof of ownership.
  • And finally, always back up your holdings and maintain proof of ownership in case of future issues.

Understanding the best practices for including cryptocurrencies in your estate plan is important. If you are unable to access your crypto, appoint an independent custodian.

Make sure you understand what happens if you die without crypto in will and leave your assets to charity or heirs who do not own cryptocurrency! You may also want to consider gifting or transferring your holdings at some point in the future.

Can Trusts Hold Cryptocurrency?

If you’re wondering, “Can a trust own cryptocurrency,” yes, some trusts allow cryptocurrency to be owned and handled by them. But you may need to hire professional administrators to control your assets, to see who has access to your assets when your assets are transferred, etc.

  • Leaving your cryptocurrency in a trust helps you prevent the loss of your share once you die.
  • It prevents the probate procedure that exposes your cryptocurrency.
  • Isolates from scammers and hackers if your cryptocurrency is kept in cold storage.

Challenges of Estate Planning

Cryptocurrencies are a rapidly growing digital asset class, quickly changing the way we perceive them. However, estate planning for including cryptocurrencies can be challenging due to the following reasons:

  • First, ensure a valid will addresses cryptocurrency ownership and inheritance rights.
  • Next, find out if a trust can own cryptocurrency or not. If yes, consider using a trust or other legal structure to protect your assets from probate court proceedings.
  • Be sure to understand the risks involved when including cryptocurrencies in your estate plan.

Researching and consulting with an estate planning attorney will help you create a plan tailored to your needs and protect your assets.


Cryptocurrencies are a new and exciting investment option, but there are some things you need to keep in mind when investing. For example, always consult with a crypto estate planning attorney if you’re interested in including cryptocurrencies in your estate plan.

In addition, make sure you track the value of your cryptocurrencies and ensure they’re properly documented for tax purposes. Also, make sure you have a strategy for how you’ll distribute your cryptocurrency assets if something happens to you before retirement or death.

When considering adding your crypto in will, you must understand the procedure and its consequences clearly. This allows you to safeguard crypto in will and store them for your loved ones even after your demise.

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