Regular readers know we believe bitcoin is a world-class asset.
Unlike cash, it’s got a hard cap of 21 million coins. You don’t need banks or third-party institutions to store it. It’s “permissionless.” So, you can trade it with anyone, anywhere, at any time.
And its decentralized blockchain is arguably the most secure network in the world. It’s tamper-proof. No government, bank, or third party can control or manipulate it.
Since Daily editor Teeka Tiwari recommended it in 2016, bitcoin is up 9,683%. That’s enough to turn every $1,000 into $97,834.
Those types of gains are why some industry experts voted Teeka the most-trusted crypto expert in the world. More importantly, they’ve turned some of our readers into millionaires.
But with crypto riches comes one uncomfortable question…
What happens to your bitcoin after you die?
I know it’s a sensitive subject.
But estate planning is important. And because many people are new to crypto, they probably haven’t considered the ramifications of their passing on their bitcoin holdings.
Read this carefully…
If you don’t create a plan for distributing your assets post-death, the courts will do it for you. And the results may not turn out how you would’ve liked.
In today’s issue, I’ll share six simple steps you can take to create your crypto-estate plan.
After all, what happens to your fortune after you pass is almost as important as what you do with it while you’re still here…
Crypto Estate Planning 101
Even though bitcoin is experiencing some volatility, we still believe it’ll go to $500,000 in the coming years. (Some experts project it will even reach $1 million or higher.)
That’s at least 11x upside from today. It also means that even a small amount of bitcoin can turn into a fortune.
So, if you own bitcoin (or any crypto), you need to start thinking about what will happen to it after you pass.
It’s a big deal. Because as Teeka says… bitcoin is the type of asset that can create generational wealth:
Bitcoin will not only change the course of your financial life… It will change the course of your entire generational line. The way you live your life… The way your children live their lives… The way your grandchildren live their lives. Bitcoin will change it forever. That’s what this asset can do for you… for me… and for millions of other people.
Given the stakes, I did some digging to see the best way to bequeath your bitcoin.
I talked to a top estate-planning attorney for crypto assets. I also spoke to one of the nation’s most-recognized financial advisors specializing in crypto.
They told me that when it comes to estate planning, you should treat crypto like any other asset…
When someone passes away, there’s a process of discovering what they own.
In the past, you might look through their mail for bank and brokerage statements. But since we usually hold crypto in private wallets, there’s no paper trail.
This raises three important questions:
How do you discover the assets? Crypto is digital. And online assets are particularly difficult to discover. If you don’t have the password to a computer, you won’t be able to discover what’s online, in a file, or elsewhere.
Who owns the assets? Is it an individual, a trust, or something else that owns the digital assets? Many people will use a trust to avoid probate (the often-lengthy process of proving a will is valid).
Who has access? You need the legal authority to start handling someone else’s assets after their death. If you don’t have it, you could be violating federal law.
If an heir can’t answer these questions, they’re out of luck. They can’t access the bitcoin or crypto.
That’s why you need a plan.
Six Steps to Estate Plan for Your Bitcoin
Here is a general guide to help make sure the discovery, ownership, and access process isn’t a dead-end for your heir(s):
Have a will. Clearly stating how to distribute your assets and property is the easiest way to ensure nothing is lost.
Consider a trust or LLC. This can protect your crypto assets from estate taxes and other financial liabilities, leaving more to your heirs. If you have cold wallets not listed in your will, trust, or LLC, have a document with instructions on finding and accessing them.
Choose executors or trustees that understand crypto. Since we hold crypto differently than cash, choose someone who understands how it’s traded and held. This may require having a separate crypto-executor or crypto-trustee.
Record and secure your crypto wallet details. Although it’s often best to avoid writing down seed phrases and passwords, having physical copies of your credentials is something to consider. You can hold the paper copy in a secure file cabinet, a safety deposit box, or some other offline location.
Understand the limits on your crypto accounts. For instance, most crypto custodians only allow individual accounts without TOD (transfer on death). But as the crypto market grows, more options will become available.
Keep your estate plan up to date. You need to account for any major life changes like weddings, divorces, births, adoptions… new accounts… new passwords, etc. Staying on top of these things will lessen the burden on your loved ones.
This guide is just a starting point. But these six steps should get you thinking about how to ensure your cryptos get in the hands of your intended heirs.
Note: Every individual’s financial situation is unique. So, if you’re serious about proper estate planning, we strongly encourage you to consult a financial advisor, attorney, or accountant who knows how to handle crypto assets.
Securing Your Financial Legacy
Bitcoin is a great asset. With at least 11x upside from today’s price, there’s no better gift to leave your children and grandchildren.
It’s a legacy that could fund their education, help open a business, or secure their financial future for generations.
As Teeka says:
As mass adoption of bitcoin continues to roll out, it will change the course of your financial life… which changes the course of your entire generational line through these assets.
Most of us probably won’t think about estate planning until we’re older. We just want to get it done before we die. The problem is that no one knows when that will happen.
So consider the six steps I mentioned above and start planning as soon as possible.
Finding an accountant or attorney familiar with crypto might take a little legwork… but that’s a small price to pay for securing your family’s financial future.
Analyst, Palm Beach Daily
P.S. While estate planning is for the long term, Teeka also sees a chance to make generational gains from the stock market over the short term.
It all has to do with a rare phenomenon he calls an “Anomaly Window.”
These events are like a window in time that alters the normal rules for profiting in the market… and the short-term gains you can see from seemingly ordinary, boring, blue-chip stocks become life-changing.
Teeka’s strategy is so successful it’s been right 362 times in a row… and past trades have been enough to recapture 20 years of S&P 500 returns in as little as three months.
That’s why he’s hosting a free live event this Wednesday at 8 p.m. ET.
Teeka will explain the coming Anomaly Window during the event, and he’ll even give away the names and tickers of stocks you can use to play it – no strings attached.
All you have to do is reserve your spot right here and join Teeka this coming Wednesday.