pile of gold bitcoin representing cybercurrency investment

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Bitcoin, Ethereum, XRP, Cardano, Stellar, and other types of cryptocurrencies can be attractive investment opportunities for high-net-worth Mexican and Latin American entrepreneurs. Without proper planning, however, your heirs may lose out on these assets after your death.

Estate Planning Considerations for Cryptocurrency Investors

It is vital that you include your cryptocurrency in your estate planning documents. While there are techniques that can be used to locate a person's bank accounts and traditional investments if they are not listed in an estate plan, these methods do not work for digital currency. With more than 10,000 different types of cryptocurrencies being traded on a regular basis, locating your digital assets with no knowledge of what to look for would be like finding a needle in a haystack. Your heirs could lose access to your cryptocurrency forever.

Even when its existence is known, cryptocurrency is difficult to recover without a plan in place. Your estate planning attorney can help you create a document that includes passwords, keys, and PINs so the executor of your estate can access your digital wallet. You should also include detailed step-by-step instructions, as most people do not understand how to access cryptocurrency.

As you are creating your estate plan, remember that anyone with your key can access your cryptocurrency at any time. Depending on your circumstances, it may be best to leave your information in a password manager or cold storage drive and provide instructions for accessing these tools as part of your estate plan.

Finally, you will need to make arrangements to regularly update your planning documents to reflect changes in your cryptocurrency investments. If you're frequently trading cryptocurrency, updates may need to be scheduled every three to six months.

Let Us Help You Create a Plan to Protect Your Assets

MEG International Counsel's experienced international estate planning attorneys regularly work with clients who need to take precautions to protect cryptocurrency and other digital assets. To schedule a consultation, contact us today. We also encourage you to request a copy of The Definitive Blue Book of Estate Planning for Foreign Millionaires to learn more about the estate planning process and your available asset protection options.

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