Don’t Roll The Dice On Crypto Security – Ledger Nano’s

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We live in an increasingly digital world. From cryptocurrencies to gaming assets and social media accounts, more of our personal property exists purely online. By some estimates, the average person today has around $55,000 worth of digital assets when you tally the value of things like reward points, digital media purchases, domain names, and cryptocurrency holdings.

Yet most people do little to protect these new forms of digital wealth through proper estate planning. A survey showed that less than half of millennials with significant cryptocurrency holdings have a will or trust in place. Without advance planning, digital assets may be lost forever if you die or become incapacitated. Given the rapid growth of emerging digital asset classes, now is the time to secure your family’s financial future by setting up a Digital Asset Protection Trust.

Understanding New Forms of Digital Wealth

Let’s first look at the types of digital assets that now make up a part of many people’s financial portfolios:

Cryptocurrencies – Digital or virtual money systems like Bitcoin and Ethereum have exploded in popularity in recent years as alternative investment vehicles. The total market capitalization of cryptocurrencies now exceeds $2 trillion. Leaving these unregulated and volatile holdings ignored in your estate plan poses huge risks.

Social media accounts – Accounts on platforms like Facebook or Twitter may not seem that valuable, but for people with large followings they can earn advertising revenue even after death. Protecting account login details is crucial for transfer.

Reward points/cashback – Many consumers accumulate rewards points through credit cards or store loyalty programs, but balances can be forfeited if accounts remain inactive after death.

Virtual gaming assets – In-game purchases, currency, and items acquired can have real monetary value in online gaming worlds and metaverses. Some rare or unique virtual assets sell for thousands of dollars.

Digital media – People build extensive libraries of digital music, movies, ebooks, and photos over their lifetime. It’s important to enable transfer upon death.

Domain names/websites – Domain names that drive web traffic can be monetized or sold for income. Websites for businesses are assets that should remain operational.

Online financial accounts – Brokerage accounts, payment apps like PayPal, and other fintech services contain funds that require authorized access.

Cloud storage data – People store valuable personal files and business documents online “in the cloud” that heirs will want to retrieve.

Email accounts – Email often contains vital information needed to wrap up someone’s affairs after death or become evidence in disputes.

Non-fungible tokens (NFTs) – These irreplaceable blockchain-verified assets have unique value as digital art, collectibles, videos or music files that needs protected inheritance.

This list will only expand as technology evolves. But already, failing to consider these digital possessions in estate planning can cause financial harm and headaches for loved ones.

Challenges for Digital Asset Inheritance

A core challenge with bequeathing many digital assets is that physical possession of a cryptocurrency wallet or title to an online account does not grant access, unlike with physical assets. Without usernames and passwords, heirs may be locked out even if named as rightful beneficiaries.

Online platforms also have divergent policies on asset transfers to next of kin. Proving you are an authorized heir can be difficult and require court declarations. Language barriers if assets are held with international platforms add another layer of complexity.

Ownership of certain digital items may be unclear as well. If multiple family members contributed to a Reward Club membership attached to one account, who is legally entitled to the accumulated points if the primary member dies? Fractionalized NFTs whose partial ownership is spread globally pose an extreme succession planning headache.

Tax liabilities provide another stumbling block. Depending on how cryptocurrencies and other digital assets appreciate over time, inheriting them may trigger capital gains taxes if later sold for a profit. Careful planning is needed to optimize tax treatment for beneficiaries.

Finally, some digital assets simply have less robust security than traditional financial accounts. Forgotten passwords mean cryptocurrency wallet contents are lost eternally. So making sure login credentials are available to heirs is crucial.

How Digital Asset Trusts Can Help

Using a Digital Asset Protection Trust designates a Trustee to manage and distribute your digital assets to chosen beneficiaries according to predefined terms. The Trustee is provided all usernames, passwords, keys, and access credentials needed to avoid the pitfalls described above.

Here are some key benefits of using a Digital Asset Trust:

Legally Binding Distribution Instructions – The trust agreement contains clear directions for distributing assets that are difficult for dissatisfied heirs to contest. This avoids potential infighting if some individuals feel they did not receive their ‘fair share.’

Smoothes Asset Transition If Incapacitated – Naming a contingent Trustee in the trust allows your digital assets to be managed seamlessly if you become incapacitated through dementia or disability. This avoids a lengthy court intervention being required.

Optimizes Tax Treatment – A professional Trustee can liquidate assets and pay any capital gains or estate taxes owed before transferring remaining assets to beneficiaries. This containment of tax liability within the trust is superior to having surprise tax bills sent directly to heirs later.

Adaptable To Emerging Digital Trends – The Trustee has flexibility to handle new digital asset classes, technologies, or ownership structures that arise in the future using their expertise. A rigid legal will may become quickly outdated given the pace of digital change.

Conditional Distribution Options – You can provide detailed instructions in the trust for only distributing certain digital assets to beneficiaries once they reach a defined age or maturity level. For example, minors may not receive full control of cryptocurrency inheritance until 25 years old.

Maintains Privacy – A Digital Asset Trust allows transfer of digital assets while maintaining more privacy since court filings are avoided. This appeals to those who prefer estates remain private.

Of course, the Trustee assumes huge responsibility for properly securing and managing private keys, passwords, and other sensitive access credentials. Selecting an experienced and technically savvy Trustee is crucial. Some other key steps in setting up a Digital Asset Protection Trust include:

Catalog All Digital Assets – Create a detailed inventory of digital assets and where related credentials/information is stored, providing complete instructions for access.

Pick a Suitable Trustee – Opt for a professional corporate Trustee with digital asset expertise versus a family member or friend for enhanced security and continuity if you become incapacitated.

Draft Trust with Lawyer – Work with an estate planning attorney to craft the trust agreement outlining asset distribution structure, taxes, fees, and conditional terms for distribution.

Provide Access Information – Give the Trustee or detail in the trust itself where all passwords, keys, and instructions for accessing accounts can be found. Use encrypted storage.

Regularly Update Asset Inventory – Review and update the catalog of digital assets, credentials, and access instructions as your portfolio evolves over time.

Notify Platforms of Trust – Inform account providers like social media platforms of Trustee access permissions. Make sure assets easily transition to Trustee if you pass away or become incapacitated.

Consider Cyber Insurance – Insure risk of potential digital asset theft through cyber liability coverage. The Trustee should utilize institutional-grade security and encryption safeguards.

Failure to Plan Puts Digital Assets at Risk

Without proper advance planning, your digital assets may be lost permanently upon death or incapacitation. Unfortunately, one survey found 25% of millennials would rather have someone access their social media accounts than manage their digital assets if they became disabled. But approaching digital wealth with the same diligence as traditional estate planning is crucial.

Digital asset values also have far more potential to rapidly appreciate through viral popularity or wider adoption. Consider someone purchasing an NFT that later explodes in value. Failing to bequeath this to heirs properly results in immensely more lost wealth than if originally purchased.

It only takes one forgotten password or unnamed beneficiary to potentially erase or exclude a next generation from inheriting meaningful wealth you created digitally. Don’t make the mistake of overlooking digital assets in your estate plan. Protect your family’s financial interests for generations to come and maintain your legacy by setting up a Digital Asset Protection Trust today.

Unrivaled Security for Your Digital Wealth – Get Ledger Nano

Take control of your digital assets with Ledger Nano – the most secure crypto hardware wallet. With Ledger’s proprietary technology, your private keys are stored offline, protecting them from hackers and malware. With just a few clicks, you can easily buy, sell, trade, and manage your cryptocurrencies and NFTs.

Ledger Nano supports over 1500 coins and tokens including Bitcoin, Ethereum, Solana, Dogecoin and more. It’s easy to set up and comes ready to use out of the box. The intuitive interface allows you to securely transact and monitor your portfolio on the go.

Don’t wait – order your Ledger Nano now and take the first step to truly owning your crypto. With cutting-edge security features, Ledger Nano gives you peace of mind knowing your assets are safe and always in your control.

The Ledger Nano S and X come with robust security features like secure chips, PIN protection, backup phrases, and supports for over 1500 coins and tokens. Set up is easy through the intuitive Ledger Live app.

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