If you follow stock and cryptocurrency news, you have likely seen the surge in digital asset values. Over the past three months, Bitcoin has increased by about 135%, Ethereum by 230%, and Litecoin by 125%. With these gains, we’ve been getting more inquiries about how to protect and transfer cryptocurrency as part of an estate plan.
Why You Should Include Cryptocurrency in Your Estate Plan
Cryptocurrency is becoming increasingly mainstream, yet it remains highly volatile. If your risk tolerance is high enough to invest, you should also plan for how to pass your crypto wallet to your heirs. Unlike a traditional bank account, cryptocurrency can be transferred with just a passcode. That convenience makes planning essential. Without a plan, your family could lose access to valuable assets.
How to Transfer Cryptocurrency Securely
In most cases, heirs only need your passcode to unlock your wallet and transfer cryptocurrency. Your estate plan should include the right legal language to avoid problems with state or federal laws, terms of service, or fraud statutes. However, this ease of access creates risk. Anyone who has your passcode could log in and move funds to an untraceable account. Choose carefully who will hold this information.
Cold Storage as a Safer Option
Cold storage can reduce risk. This method stores your wallet’s passcode on a USB device or similar hardware. The wallet only unlocks when the device is connected to a computer, meaning you can securely pass the device itself to your chosen heir. While this option is safer, it must be set up correctly to work as intended.
Work With an Experienced Atlanta Estate Planning Attorney
Before making decisions about transferring cryptocurrency, consult with an estate planning attorney who is familiar with digital assets. At Thrift McLemore, our Atlanta estate planning lawyers help clients across Georgia ensure that their Bitcoin, Ethereum, and other digital currencies pass according to their wishes. We will guide you through safe transfer options and ensure your plan complies with Georgia law.
Schedule a Consultation Today
Your cryptocurrency could be one of the most valuable assets in your estate. Do not leave it unprotected. Call Thrift McLemore at 678-882-0830 to schedule a consultation with one of our Atlanta estate planning attorneys. We will help you create a plan that protects your family and secures your digital assets for the future.
