Privacy is important to many individuals. As the Colorado resident strives to keep his or her financial affairs private, there are risks involved with such action. Without a complete listing of one's investment accounts and other financial matters as a part of one's estate planning documents, it is possible that heirs may not be aware of such accounts exist until much later, if ever.
With traditional investment accounts, heirs typically know where to find information regarding these accounts. There are usually statements filed away somewhere, and information is typically included as a part of one's tax package. Even though it may take a little while to find and access these accounts, this can be done with relatively little difficulty.
However, a newer form of investment is proving to be more of a challenge if specific details are not included as a part of the estate planning process. Cryptocurrency is becoming a popular investment tool. With cryptocurrency, one's financial affairs remain completely private. Information regarding such accounts cannot be accessed by searching for the individual's name or even social security number. In order to access such accounts, the account holder must have the appropriate password and login information.
Since these accounts are cloaked in such secrecy, it is possible that heirs will not know of their existence, or if they know they exist, they may not be able to access them without the proper information. As a part of the estate planning process, the Colorado resident will want to maintain a complete listing of all accounts, login and password information and all other pertinent details. Such information can be listed on a net worth statement or other such document and kept in a trusted location such as a safe deposit box or smart thumb drive. Experienced legal counsel can assist one in knowing what information needs to be included and the best way for heirs to access such accounts.
Source: CNBC, "That fortune will be lost if you don't add cryptocurrency assets to estate plan", Barry Glassman, May 1, 2018