Cryptocurrency might have seemed like a passing phase a few years back, but not so much anymore. Popular digital currencies — such as Bitcoin — frequently make the news, and investing in these assets is becoming more and more popular. Estate planning needs in Tennessee are changing with the rise in popularity of these and other digital assets.
Accessing another person’s digital assets is not easy. Most accounts are protected with usernames, passwords and even security questions or PINs. Even if someone has some or all of this information for another person’s account, he or she may not have the legal right to access it. Including this and other relevant information in a will is the first step to making sure that heirs can access digital property.
Alongside a motor vehicle, bank account or collection of stamps, individuals should also list out all of their digital assets. Access information, such as passcodes or guides for particularly tricky login sequences, should be detailed as clearly as possible. This is especially important for people who are active in the crypto trading community. However, providing access to all digital accounts — not just those that contain assets — is usually a good idea too. Without the proper legal access to handle these assets after death, surviving family members may never see a large chunk of their inheritances.
This information is so important that one expert advises creating duplicate copies of these accounts and login information, then storing them in separate locations. The information should also be updated regularly. For some, an annual update is sufficient. However, Tennessee residents who are active crypto traders may need to do some estate planning updating a little more regularly.