As if dealing with digital assets from an estate planning perspective was not difficult enough…now there is Bitcoin.
Bitcoin and other virtual currencies are creating interesting and unique challenges for Estate lawyers and owners who are giving consideration to their estate plans (not to mention the future challenges for those that are not)
Fortunately, bitcoin was given due consideration in the new Fiduciary Access to Digital Assets Act (FADAA) which specifies that `digital assets include digital currency and similar products currently in existence and yet to be invented. This Act is good news if you live in the US and your State takes the opportunity to use the Uniform Act as their legislation. The Act allows a representative or fiduciary to deal with digital assets in a similar way as they would for financial or physical assets. It shields those representatives from any inadvertent liability. Thus far there is no such progress on such legislation in Canada as far as we know.
As for some of the other issues surrounding Bitcoin, there`s a good summary from Bloomberg BNA which you can find here or as a download here: Bitcoin is creating new headaches for Estate Planners as a download