Cryptocurrency and the Will Writer

Written by Sam Jackson on 24th May 2021

Cryptocurrencies are getting more and more popular. WillSuite has taken the inclusion of digital currencies within wills seriously, and have been supporting them since 2018 when the first will to include cryptocurrency was drafted within the system. 

This form of digital currency has soared in popularity over the last few years, yet people are still unsure as to what they actually are and how they operate. In light of this, the present  article examines this topic to expand the information around Cryptocurrencies 

How do they  work?and why is it more relevant than ever for Estate Planners?

Cryptocurrencies are digital peer to peer currencies, encrypted in a blockchain. What this means in simple terms, is that the digital currency isn’t stored in one location, rather it's encrypted and stored on multiple different hard drives. People are able to “mine” cryptocurrencies with powerful computer hardware through solving complex equations. These equations lead to validating cryptocurrency transactions and miners are rewarded with the digital currency. Because of this, it means that digital currencies lack the need for transaction fees or working around bank hours. 

Digital currencies are subject to tax as monetary gifts are, and as such should be given the same care and consideration when being drafted into a will. Estate Planners have had to work with new legislation around cryptocurrencies these past few years. Practitioners need to ensure digital legacy information is kept secure and detailed. Currencies like Bitcoin have reached incredibly high values highlighting the importance of taking into serious consideration any cryptocurrency gift in modern wills. WillSuite software fully supports the inclusion digital legacies and cryptocurrencies, it's a simple and easy process. If you haven't already, you can trial the software free for 14 days.

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