Estate Planning With Bitcoin and Cryptocurrency: Structuring Transactions, Tax and Non-Tax Issues, Protecting Assets

The IRS considers cryptocurrency and other digital assets to be personal property. These crypto-assets have value and will become assets of an individual's estate forcing estate planning counsel to consider a variety of factors in drafting estate documents to transfer these types of assets.

Holders of cryptocurrencies risk losing their assets upon death unless they take proactive steps to ensure that these assets pass to their heirs or beneficiaries. Unique planning factors apply to cryptocurrency that counsel must consider, such as the rules regarding the custody, security and accessibility of digital assets, the Uniform Prudent Investor Act, and complex tax regulations. Estate planning counsel must become knowledgable in how these rules impact estate plans and the available transaction structures to ensure efficient administration of the estate.

Listen as our panel discusses the impact of crypto-assets on estate planning, the tax and non-tax issues that may arise, and offers essential techniques for the effective administration of an estate with these types of assets.

1. Recent IRS developments on cryptocurrency and impact on estate planning
2. Custody and accessibility of crypto-assets
3. Applicability of the Uniform Prudent Investor Act and planning considerations
4. Structuring transactions to manage tax and non-tax issues involving crypto-assets

The panel will review these and other key issues:

• Recent IRS developments on cryptocurrency and the impact on estate planning
• Accessibility and accounting for crypto-assets in an estate plan
• Implications of the Uniform Prudent Investor Act
• Effective estate planning techniques for crypto-assets; use of LLCs, trusts, etc.
• Evaluating a step-up or step-down in basis
• Structuring transactions to manage both tax and non-tax issues involving crypto-assets