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How to pass digital assets to future generations

Bitcoins are assets that may be passed to another person when the original Colorado owner passes away. However, this assumes that the original owner left instructions as to how the bitcoins could be accessed. In most cases, an individual uses a private key to access an account or make a transaction. Without the key, the coins could be lost forever.

They could also be lost forever if a person has a key and doesn't know how to use it. In that case, no new coins will be made and the rest that are in existence simply become more valuable. Therefore, it is important that those who own bitcoins tell a beneficiary where the key is located and how to use it. This may be made easier by creating a shared account on sites like Coinbase.

It is important to understand that state law may be vague when it comes to how digital assets are handled after a person dies. Therefore, it may be a good idea to include bitcoins in a will or a trust. This may help to ensure that the property goes where the owner intended. Various sites themselves may also have different rules as to how an account can be accessed after the owner dies.

Generally speaking, it is never too early for an individual to create an estate plan. An attorney may be helpful in preparing the appropriate documents such as one or more trusts along with a will that conforms to state law. In many cases, financial and health care powers of attorney could be advisable as well.

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