After death or at incapacity, an individual’s appointed executor, guardian, or agent may temporarily step in to manage the assets of the estate. A simple example, if mom or dad becomes incapacitated, their appointed agent may access bank accounts to pay their bills in their stead. Drafting a durable power of attorney or selecting a guardian in case of incapacity can make difficult situations much easier to manage for family and friends. Though these measures may ordinarily be helpful, the advent and proliferation of cryptocurrency has served to undermine such careful estate planning. Urban legends abound involving fabled Bitcoin holders who have lost their private keys and access to millions of dollars in the cryptocurrency. To avoid such hassles and the potential loss of valuable assets, it may be prudent for cryptocurrency holders to stash their private keys and logon credentials in a safe place and to let a trusted family member know of the location.
See David Canton, What Happens To Cryptocurrencies When You Die?, Slaw, February 21, 2018.
Special thanks to Victor Salas, Evening Reference Librarian, Louis L. Biro Law Library, The John Marshall Law School.
