When planning your estate, it’s important to consider the best ways to pass down assets from generation to generation. While traditional forms of investments, such as stocks, bonds, and mutual funds, have long been passed along in wills, cryptocurrency and non-fungible tokens (NFTs) are relatively new digital investments that may be less understood. In this blog post, we’ll answer the question, “Can you leave cryptocurrency or NFTs in a will?” so you can know if your loved ones can benefit from them after you’re gone.
Can You Leave These Assets in a Will?
Yes, it is possible to leave cryptocurrency or NFTs in a will—cryptocurrency and NFTs are property you can transfer through a last will and testament. However, there are some challenges associated with this process, as these assets are digital and kept in an online wallet or account. Therefore, it is important that the individual making the will takes steps to ensure the beneficiaries of the assets can access them.
How To Leave Crypto or NFTs in a Will
When leaving a digital legacy, work with an experienced attorney who understands how to properly handle these assets. With their help, you can ensure your wishes are followed while providing peace of mind for you and your beneficiaries.
To leave cryptocurrency or NFTs in a will, the individual making the will should include specific language regarding how to distribute the assets. This language should have details including who is the beneficiary of the assets, what type of asset it is, and where it is stored. Additionally, the individual should provide instructions on how to access the asset, such as providing a private key or recovery phrase. Lastly, they should name an executor of their will who is responsible for overseeing the asset distribution process.
Taking these steps ensures the assets can transfer as intended and there isn’t any confusion or dispute among the beneficiaries.
The Benefits of Leaving Crypto or NFTs in a Will
Now that you know if you can leave cryptocurrency or NFTs in a will, you may wonder: what are the benefits of doing so?
Leaving cryptocurrency or NFTs in a will is an effective way to ensure your assets are passed on as intended. It also provides the beneficiary with an opportunity to benefit from any potential appreciation of these digital assets, which can be substantial. Additionally, it allows you to maintain control over how and when these assets are distributed, providing peace of mind for the individual making the will.
Finally, leaving cryptocurrency or NFTs in a will can provide additional tax savings for the beneficiary, allowing them to avoid paying capital gains tax on their inheritance. This is especially beneficial given that digital currencies and NFTs are not subject to inheritance taxes in many jurisdictions.
It’s important for individuals to keep their digital asset information secure and up to date. For those looking to increase the security of their crypto assets and ensure they are always accessible, BT-Miners’ Kadena mining hardware can be a great solution. We offer various mining setups that provide a high level of security, dependability, and efficiency for all types of cryptocurrency assets. With this top-of-the-line hardware, you can rest assured your digital assets will remain safe until it’s time to pass them on to your beneficiaries.