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Law Office of Paul S. Labiner

Estate Plans for Cryptocurrencies [Sept Newsletter]

Published over 2 years ago • 1 min read

New Legislative Text from House

The big news this month, is the draft tax policy legislation put out by the House Ways & Means Committee. In keeping with previous tax policy proposals by Bernie Sanders and President Biden, the Committee’s proposals take aim at a broad array of vital tax mitigation and wealth transfer mechanisms.

This is, of course, draft legislation, so we do not know exactly which provisions would make it into a final version of this bill. Regardless, the larger trend is clear: Wealth preservation and tax mitigation strategies for high-income earners are on the chopping block.

Estate Planning for Bitcoin and Cryptocurrencies

Just over 10 years ago, the cryptocurrency Bitcoin burst onto the scene. In that short period, it has grown from the hobbyhorse of a handful of rabid adherents into a lucrative investment tool (and even legally accepted tender in one country).

Bitcoin really took off in the fall of 2020, reaching its $63,000 apex in April 2021. While the price has fallen a bit since its April high, it’s still hovering around $50,000. Other cryptocurrencies have entered the market as well (e.g. Ethereum).

As more and more investors integrate crypto into their asset portfolios, it’s important to remember that, like any other asset, cryptocurrencies need to be incorporated into your estate plan. But crypto poses some unique estate planning challenges. Chief among these concerns is that, if done wrong, your heirs could lose access to the asset entirely.

A Digital Asset Catalog is a great way to prepare for the long-term preservation of your cryptocurrency assets. You can download a free template right now to start tracking these vital pieces of information.

The Time Is Nigh: End of Year Planning

Though you may not consider September the “end of the year,” we are just about to enter the fourth quarter. As we move into Q4, it’s important to start considering what changes you may want to make to your estate planning documents prior to the new year.

Have any big events happened this past year? Did you buy a new home? Relocate? Increase or reorganize your asset portfolio? Did you have a new child or grandchild? Did you get married or re-married? All of these considerations can have big impacts on your estate plans.

However, changes to these important documents take time, and time is running out. Give me a call today so we can set up a time to discuss how we can help you secure your financial legacy.

Finally, though it might be a little bit late, I would like to wish my Jewish friends, family, and acquaintances a blessed and prosperous new year. See you next month!

Sincerely,

Paul S. Labiner, Esq.

Law Office of Paul S. Labiner

Estate planning attorney in South Florida. Helping you protect your assets and preserve your wealth.

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