There is a larger article concerning Cryptocurrency and Estate Planning written on our Resources page; but I thought I would hit a few of the highlights here. Simply, “traditional” estate planning models, language, and documents are not sufficient to deal with the crypto asset revolution. Just a few issues come to mind: fiduciary powers may not be specific enough to administer crypto assets; investment instructions may not be specific enough to allow a fiduciary to administer the crypto assets and do so in a way that is not contrary to the Prudent Investor Rule; the complication of private key discovery without violating Privacy Laws; the problem of privacy keys and Successor fiduciaries; the importance of a “Special” Trustee ; and a carve-out provision allowing a “Special” Trustee, separate from a general Trustee, to monitor and administer crypto assets. Traditional estate planning “drafting” fails in light of the nuances of cryptocurrency. Finally, there is a strong need for contemporaneous memorandums memorializing the transfer of any crypto assets to any the trust vehicle. This is because there are no centralized institutions — or trust law — to help determine whether a transfer of crypto assets to a trust is valid and the valuations are accurate. These are just some of the issues discussed in the article. If you own crypto assets now or plan to in the future, it is time to rethink your current estate planning documents.

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Jason Morton is a Partner in a small boutique tax law firm, Webb & Morton PLLC, with offices in both North Carolina and Virginia. He maintains the law firm’s very active

Blog, as well as maintaining a Vlog on YouTube. Jason…

Jason Morton is a Partner in a small boutique tax law firm, Webb & Morton PLLC, with offices in both North Carolina and Virginia. He maintains the law firm’s very active

Blog, as well as maintaining a Vlog on YouTube. Jason has published several featured articles with TaxNotes, the NC Bar Association Tax Section, Autism Parenting Magazine, local newspapers and most recently, working with Cointelegraph and Bloomberg Tax. Jason is also an Officer in the Army National Guard, most recently serving an active duty tour from 2016 to 2018. Most importantly, above all else, Jason is proud Autism Dad.