Jennifer Zegel a partner in the Firm’s Trusts & Estates Practice was quoted in a Wall Street Journal article on how crypto assets can be safely left to an heir though and estate plan. The article emphasizes that without proper planning and detailed instructions an heir may never receive the assets or that they could fall into the wrong hands. Jen notes that it is also important to understand that the IRS treats cryptocurrency like any other asset and that it is subject to inheritance and estate taxes.
“New federal or state crypto regulations are likely to be enacted in the coming months and years, which could also affect tax treatment in various scenarios,” said Zegel. “So, it is important to revisit the plan.”
Jen also emphasizes the importance of being precise about how crypto assets should be handled while remaining aware of privacy considerations.
“Wills become public documents through most state probate processes, so don’t spell out private keys in the will or say how much is going to each heir. Instead, consider stating that crypto assets be put into trust for a particular heir’s benefit. That trust is a private document, which can have the more specific designations on who gets what and how things can be managed,” said Jen.
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