fbpx Ask An Expert

Want to read more? Sign Up For Our 7-Day Free Trial

Search
Close this search box.

Crypto And Estate Planning Series Part 2: Avoiding Probate of Crypto Assets Through A Living Trust

Bitcoin cryptocurrency coin

In Part 1: Cryptocurrency Basics of the Crypto and Estate Planning Series, we discussed basic terminology and fundamental elements of crypto assets such as storage methods, determining ownership, and how they’re transacted in order to set the stage and address questions and challenges that estate planners now face when planning with this new type of “asset class” simultaneously acting as both a store of value (investment) and a medium of exchange (currency) that clients will undoubtedly have on their balance sheet to some degree.

Avoiding Probate: Ownership Of Private Keys

Probate is a title changing process that changes title from the name of someone who dies to the name of the decedent's heirs, in accordance with the decedent's will.  For many states, probate is often an expensive and lengthy process – and in all cases is a matter of public record.  For these reasons, people generally try to avoid probate.

Avoiding Probate: Ownership Of Private Keys

Probate is a title changing process that changes title from the name of someone who dies to the name of the decedent's heirs, in accordance with the decedent's will.  For many states, probate is often an expensive and lengthy process – and in all cases is a matter of public record.  For these reasons, people generally try to avoid probate.

One popular method of avoiding probate is by establishing a revocable living trust, and transferring a person's assets to the trust during life.  That way, when the person dies, no title changing process is necessary for the decedent's fiduciary to gain access to the decedent's assets to transfer those assets to the heirs – because the title change (to the name of the living trust) already happened during the decedent's lifetime.


Want To Read More? Sign Up For Our 7 Day Free Trial.

Please login below. If you don't have an account, feel free to sign up and get access to the entire WealthCAP HUB®.

suggestion

Feedback

Upgrade your account

To access the download article feature, please upgrade your account to Corporate+ or above.