When families get together to celebrate the holidays, it is a great opportunity to discuss wealth transfer with the next generation. Too often, families do not communicate about finances and are not educated on the basics of estate planning.
In the Northern Virginia area, we come across many successful professionals who have significant philanthropic desires. As financial professionals, it is important that we understand different charitable gifting options to explore with the client as part of their financial or estate plans.
Cryptocurrency is a digital or virtual currency that uses cryptography for security. Each cryptocurrency uses a unique electronic address for transfer between users’ digital wallets. The user must have a ‘private key’ to be able to move cryptocurrency. If the owner does not provide a fiduciary with a ‘private key,’ the cryptocurrency is inaccessible by anyone upon the owner’s incapacity or death. This is known as a “black hole” wallet because the cryptocurrency becomes inaccessible and essentially worthless. Cryptocurrency is difficult to counterfeit because of this security feature. A
If you want to own Bitcoins or any other cryptocurrency, you need to have a digital wallet. The purpose of a digital wallet is to provide a space to send and receive cryptocurrency and to store private keys. Private keys are known only to the owner and are needed to authorize transfers.
In order to develop a digital asset plan, first we need to define digital assets. In general, digital assets are a form of personal property, including emails, social networking sites, digital collections, and cryptocurrencies.
