What if millions, or even billions, of dollars in wealth suddenly disappeared? What if some of your assets are lost after your death and your heirs are unable to recover them? With the rising popularity and value of cryptocurrency, these scenarios are now a very real possibility.

What Is Cryptocurrency?

A cryptocurrency is a digital asset designed to work as a virtual medium of exchange. The "crypto" part of the name comes from the fact that the currency uses cryptography to secure transactions. Think of it like wiring money or trading stocks (all ones and zeros), except that cryptocurrency is not regulated by a central bank or securities commission.

This lack of regulation poses a big problem for investors. Cryptocurrency appeals to many investors because it is intensely private. In other words, no one knows if you own Bitcoins, for example, unless you tell them. So if you die unexpectedly and leave no records of your cryptocurrency wealth, how will your heirs be able to access those assets?

Cryptocurrency and Estate Planning

As with all digital assets, any cryptocurrency you own should be incorporated into your estate plan. We have created a guide to digital estate planning, and the principles in that guide generally hold true for cryptocurrency. However, unlike many other digital assets, the secrecy of cryptocurrency means that creating a digital estate plan is the ONLY way you can ensure the safe transfer of your cryptocurrency after death.

Unlike banks accounts or stock portfolios, cryptocurrencies do not send statements to the IRS. They do not have a customer service number. They do not have a "search" function whereby you can find whether someone has an account. All account information is private.

Even if you tell your heirs that you own cryptocurrency, you need to tell them how to access those assets. What do they need to know in order to find and control your cryptocurrency? Consider including the type of cryptocurrency, your passcode, answers to your security questions, and other important information. Without passing along this information to your executor or your heirs, your digital assets could be lost forever.

Create Your Digital Estate Plan Today

If no one knows about your cryptocurrency investments, all that wealth could essentially float away into the Internet abyss after you die. To discuss estate planning and how you can incorporate digital assets like cryptocurrency into your estate plan, contact the experienced Oklahoma City estate planning attorneys at Postic & Bates for a free, no-obligation consultation appointment.

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David M. Postic is a shareholder at Postic & Bates, P.C. His practice focuses on estate planning, asset protection, probate and trust administration, business planning, and real estate transactions.

You can email David through our Contact Us page or by calling our office at (405) 691-5080.

[As with all our blog posts and other publications and resources, the contents of this article do not constitute legal advice and are subject to our site-wide disclaimer.]

1. “I’m too young.”

First of all, you are never too young to have an estate plan. I wrote a series of articles specifically geared toward estate planning for Millennials. (Or you can substitute “Millennials” for “Gen Z” or whatever weird thing we are on now.)

Whenever young people say “I don’t have enough assets for an estate plan” or “I’m going to wait until I have a family,” what they are really saying is, “I don’t plan on going anywhere anytime soon.” Because young people don’t die, they live forever.

Everything You Wanted To Know About Estate & Gift Taxes

The Internal Revenue Service (IRS) recently announced that the estate and gift tax exemption is increasing in 2024 to $13.61 million per person, up from $12.92 million in 2023.

The IRS also confirmed that the annual gift exclusion amount is increasing from $17,000 per person in 2023 to $18,000 per person in 2024.

Read more: IRS Rev. Proc. 2023-34

Okay great, you might be saying to yourself. But what does that mean, and why does it matter?

Great questions.

There are a lot of misconceptions about estate taxes and gift taxes — often referred to as “death taxes.” What they are, who has to pay them, how to avoid them.

This article is my attempt to demystify the topic for you and to help you figure out how these tax changes could affect your estate plan.

8 Questions to Prepare Your Estate Plan for 2024

2023 is almost over.

The end of the year is a time for people to gather together with family and friends, to look back on the past 365 days, and to look forward to better, happier things.

People usually don’t want to think about things like—oh, I don’t know—their mortality. Death. Stuff like that.

However, it is crucial to regularly review and, if needed, update your estate plan. The end of the year is the perfect time to do that.

So before you completely wipe 2023 from your memory, ask yourself these 8 questions to make sure your estate plan is ready for whatever 2024 throws at you.

1. Will the right people get my “stuff”?

First, make sure your will or trust correctly states who will inherit your assets.

You should then review your pay-on-death (POD) beneficiaries on insurance policies, retirement accounts, and other assets.

Do they match the beneficiaries in your will or trust?

Many people incorrectly believe that a legal document such as a will or a trust controls what happens to all of their assets.

However, beneficiary designations can override those documents.

For example: Your trust may say that your son John will receive your entire estate and that you are disinheriting your other son, David.

But if your insurance policy lists David as beneficiary, he will still get part of your estate.

You should therefore coordinate your beneficiary designations with your will or trust to make sure all of your assets are distributed the way you want.

What's the Difference Between a Will and a Living Will?

Lawyers love to be confusing.

We use insane-sounding words from Latin and Greek and some other languages that I’m pretty sure are completely made up.

Words such as testator, force majeure, per stirpes, and inter vivos.

Our words are so weird, we have to italicize them.

So I’m not surprised when someone asks me whether a Last Will and Testament and a Living Will are the same thing.

After all, both documents have “Will” in their names, right? It would only be reasonable to think that they are similar.

But they are not similar. They are very, very different.

So I’m going to cut through the legal jargon and explain the differences between Wills and Living Wills — and help you decide which one might be best for you.

Last Will and Testament vs. Living Will

Before diving into specifics, it’s first helpful to know how to define estate planning:

An estate plan ensures (1) that the right people are able to care for your SELF in the event you become incapacitated and (2) that the right people are able to get your STUFF in the event of your death.

Every estate planning tool fits into one of those two categories, and a good estate plan should address both areas of focus.

And as luck would have it, I will be discussing both categories in this post.

3 Magic Ingredients in a Great Letter of Instruction

So you’ve got some nifty estate planning documents?

You are awesome.

Formal estate planning document can ensure your family is cared for after your death, avoid court, and minimize the burden your loved ones will face when you are gone.

But legal documents are only one part of the equation.

Your estate plan is not complete just because you signed some fancy papers.

Because while formal estate planning documents can avoid legal obstacles after your death, they do not eliminate the myriad other tasks necessary to settle your affairs.

Think of it this way:

If you died today, would your family know what to do?

If they couldn’t remember anything you told them about your estate, would they be able to easily find all the information they need?

If you answered “no” to either of those questions, then your estate plan is not complete.

To make things easier on your loved ones after your death, the best thing you can do is create an estate planning letter of instruction.

8 Reasons You Should Have a Living Trust

Trusts are amazing estate planning tools.

They can be used for tax planning, asset protection, Medicaid planning, business succession, and more (though each of those options has significant downsides).

When most people talk about trusts, however, they are referring to living trusts.

You might also hear this type of document referred to as a revocable living trust or a revocable trust or an inter vivos trust or a bunch of other names. They all generally mean the same thing.

Contrary to popular belief, trusts are NOT just for wealthy people.

In fact, because of its numerous advantages and its flexibility, the living trust has become one of the most popular — and, in my opinion, one of the best — estate planning tools available.

Here are 8 reasons why a living trust might be right for you:

1. A living trust can eliminate the need for probate.

Everyone wants to avoid probate, if possible.

It’s expensive, time consuming, difficult to navigate, and often stressful and contentious.

There is (unfortunately) a widespread belief that having a Last Will and Testament means your family won’t need to probate your estate. But a Will must be probated after your death to be effective!

In other words: If you want to avoid probate, a Will is not the way to go.

Cryptocurrency: The New Frontier of Estate Planning