Including Cryptocurrency And NFTs In Your Chicago Estate Plan
As more people turn to digital investments, things like cryptocurrency and NFTs are showing up in everyday financial decisions, including estate planning. These assets don’t sit in a bank or safe deposit box, so including them in your estate plan takes a fresh approach. If you’re holding Bitcoin, Ethereum, or a collection of NFTs, it’s important to have a plan for what happens to them when you’re gone.
Digital assets pose some unique challenges. Unlike traditional bank accounts or real estate, there’s no paper trail. Forgetting to include instructions or access info could mean these assets get lost for good. At the same time, there’s an opportunity to make sure your digital wealth transfers smoothly to the people you care about. Planning now can protect those investments and give your loved ones clarity in the future.
Understanding Cryptocurrency And NFTs
Before getting into how to plan for them, it’s helpful to understand what these assets really are. Cryptocurrency is a type of digital money that runs on blockchain technology. Unlike dollars or checks, crypto lives entirely online and isn’t handled by banks or controlled by the government. You use digital wallets and private keys to store and manage it.
NFTs, or non-fungible tokens, are digital tokens that prove ownership of something unique, like art, music, or even real estate titles. Each NFT is one of a kind and can be stored, bought, and sold on digital platforms.
Including cryptocurrency or NFTs in your estate plan in Chicago means going beyond listing them in a will. You need to make sure the right people can access them after you’re gone. That includes sharing where each asset is stored and how to unlock them. Otherwise, even if you name a beneficiary, they may never be able to use or claim the assets.
Let’s say you have Ethereum on an exchange and a digital painting NFT in a wallet. If your estate plan says who should get them but doesn’t explain how to access the accounts, your family may be unable to retrieve them at all. That’s where careful, specific planning makes a big difference.
Legal Considerations In Chicago
Planning for digital assets in Chicago means thinking through both legal rules and technology. Illinois has adopted a law called the Revised Uniform Fiduciary Access to Digital Assets Act, or RUFADAA. This law gives you the option to choose someone to manage your digital accounts after your death, but it has to be written properly in your documents.
Just saying you want someone to take care of your digital property isn’t enough. You have to legally authorize it with the right language. Otherwise, platforms like crypto exchanges might not allow anyone to even access your account. These companies follow strict privacy policies, so clear and legal instructions are necessary.
Here are some tips to help you plan for digital assets under Illinois law:
– Choose someone you trust to act as a digital asset fiduciary. This person should be named in your estate plan to manage your digital assets when you pass away.
– Keep access information secure but reachable. That might mean using a password manager or storing instructions in a location your executor can find.
– Put specific language in your will or trust to give your fiduciary legal permission to manage and transfer digital assets.
– Review your service provider agreements to make sure your planning documents support access.
The goal is to make the process as smooth as possible for your trusted person to access and distribute your digital assets legally and efficiently.
Steps To Include Cryptocurrency And NFTs In Your Estate Plan
Writing a complete estate plan that covers your cryptocurrency and NFTs means putting in a little extra effort. These assets don’t leave a paper trail, and if no one knows they exist or how to access them, they could simply disappear.
Here are steps to take when adding cryptocurrency or NFTs to your estate plan in Chicago:
1. Make a complete list of your digital assets
Create a record of everything: coins in exchanges, tokens in hardware wallets, NFTs stored online, and anything else you’ve collected. Be specific about the type and location.
2. Store access details securely
These assets can’t be retrieved without the right credentials. Keep login info and private keys in a secure spot, like a password manager or physical safe. Your plan should point to how and where to find that info, without including sensitive details directly in the will.
3. Work with an estate planning attorney in Chicago
Legal language matters. An attorney will help you figure out the right tool, whether a will, trust, or something else, to make sure your digital assets are properly planned for.
4. Assign beneficiaries and instructions
Make your wishes clear by naming who should inherit what. One person could get your crypto, another your NFT art. Leaving no guesswork makes the process easier for everyone.
5. Keep your documentation updated
As your digital portfolio grows or changes, revisit your estate plan. Add new assets, remove sold items, and make sure everything stays current.
Treating your digital assets like any other part of your estate helps ensure they’re handled according to your intentions, rather than left in limbo.
Why Legal Support Makes It Easier
Digital assets bring a different set of challenges compared to other types of property. From strict platform rules to the fast pace of changing laws, things can get complicated quickly. That’s where working with an attorney in Chicago becomes useful.
Some online services won’t give access to anyone but the original owner, even if that person is named in a will. Without the right documents and terms, your executor could run into serious roadblocks, leaving NFTs or crypto stuck in accounts that no one can touch. This can cause delays and stress for your loved ones.
An estate planning attorney in Chicago can help with:
– Choosing whether to use a will or trust for your digital items
– Including legal terms that allow your fiduciary to manage digital accounts
– Reviewing your digital holdings to understand which companies support asset transfers
– Making sure backup access details are stored properly and mentioned in your plan
You won’t have to remove every hurdle, but their support can make things much easier for your family at a difficult time.
Safeguarding Your Digital Legacy
Having a digital estate plan isn’t a one-time thing. As your portfolio grows or the platforms you use change, your plan should evolve too.
Here are a few simple habits to protect your digital estate:
– Review everything once a year. It helps keep info fresh and ensures your wishes still match your asset list.
– Update where and how you store login credentials and private keys.
– Make sure your executor or beneficiaries are aware that digital assets exist and where to start. They don’t need immediate access, just awareness.
Helping your loved ones understand your digital portfolio ahead of time can prevent confusion during an already emotional period. Even if they’re not familiar with crypto or NFTs, a little guidance can go a long way.
Your Digital Assets Deserve Real Planning
Digital investments are becoming part of everyday life. Whether you’ve dabbled in cryptocurrency or collected a sizable batch of NFTs, it makes sense to include them in your estate planning.
Unlike bank accounts or family heirlooms, these assets require more than a name on a form. They need thoughtful organizing, secure access, and legally supported instructions. With Illinois law and Chicago’s unique considerations, you’ll want a clear plan that leaves no questions behind.
Thinking ahead, keeping records up to date, and getting help from a qualified estate planning attorney in Chicago will make sure that your digital wealth protects not just your future, but your family’s as well.
Planning for digital assets like cryptocurrency and NFTs is an important step toward making sure your loved ones in Chicago can access everything you’ve built. If you’re ready to add these assets to your estate plan, working with an experienced estate planning attorney in Chicago can help. At Marshiano Law Group, we’ll walk you through the process so your digital and traditional assets are fully protected. Reach out to start creating a plan that works for you and your family.
