Cryptocurrency is becoming a huge talking point in the financial community. Although it’s still seen as a risky investment, there’s money to be made in it. Some people have made millions of dollars off their investments in Bitcoin, Ethereum, and other altcoins. Although these cryptocurrencies can appear confusing if you’re on the outside looking in, it’s easy to understand that they do have value. Thus, if you’ve invested in cryptocurrency, you’ll most likely want to leave it to someone in case you pass away. Although the technology behind cryptocurrencies can be complicated, leaving your cryptocurrency investments in a will is not. Today an estate attorney at Davidson Law Group explains how you can leave cryptocurrency in your will.
Your Private Key
If you’re familiar with cryptocurrency exchanges and wallets, you’re probably already aware that you have a private key. There are two kinds of keys when it comes to cryptocurrency. Public keys and private keys. Public keys are keys that everyone can see. If you have a Bitcoin wallet, and you want to transfer Bitcoin off an exchange into it or have someone send Bitcoin to it, you use the public key for that currency. This key is safe to share because all it does is allow deposits into that exchange or wallet. The other keys are private keys. If you have an account on an exchange, like Coinbase or Binance, you’ll have a private key that you can use to access your account in case you forget your password or get locked out. Cryptocurrency wallets work the same way, they also have a private key you can use to get access. This private key should never be shared, not even with your estate attorney unless you want the person you’re sharing it with to have access to your funds.
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Keeping Your Private Key Safe
It’s very difficult to recover an account or wallet if you don’t have your private key. Thus, it’s recommended to write it down somewhere and keep it safe. You can also store it on a flash drive for safekeeping. Another way to keep your cryptocurrency safe is to get a ledger, which is a hardware wallet for your cryptocurrency.
Leaving It in Your Will
Now that we know a little bit about how cryptocurrencies are held, our estate attorney can explain how you leave it in a will. The simplest thing to do is name who you’re leaving the holdings to and give them the information they need to log into your accounts. Giving them usernames, passwords, and, most importantly, the private keys will allow them to easily get access. If you have a hardware wallet as we mentioned, make sure you leave that to them. Just make sure you explain to your estate attorney where all your holdings are, so we can make sure to give the recipients everything they need.
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Contact an Estate Attorney at Davidson Law Group
If you’re in need of an estate attorney, trust the experts at Davidson Law Group. Our estate attorney team will be able to answer any questions you might have. For more information or to schedule an appointment, contact us in Fort Worth, Allen, or Tyler today.