Cryptocurrency Estate Planning

You may be wondering:

what happens when I die?

It depends on a number of factors including whether you own cryptocurrency personally, through a trust or company, or within superannuation.

It also depends on whether or not you have a Will.

Although you may rather not think about death, your loved ones will really appreciate it that you took the time to plan ahead as you may help them save tax.

Cryptocurrency outside superannuation

Generally, ownership and control of your cryptocurrency following your death passes to your loved ones in accordance with your Will.

If you don’t have a Will, then State law will determine who gets the cryptocurrency and this may not be what you wish for

If you don’t want to leave it up to State law or burden your loved ones with uncertainty and unnecessary taxes, then come speak to us about tax effective measures to include in your Will.

For a more detailed explanation see: Is my cryptocurrency taxed when I die?

Cryptocurrency in superannuation

Ordinarily, the trustee of your superannuation fund will get to choose which of your dependents they pay your superannuation interest to after your passing.

You can choose to lodge a “binding death benefit nomination” with the trustee of the superannuation fund which provides direction on how to disburse your superannuation interest following your death.

For tax purposes, it may be more beneficial for you to direct payment to some of your loved ones compared to others.

You may also have options before you die to arrange your affairs that’ll reduce tax after you pass.

Accordingly, we suggest you speak with us to consider your situation and help us arrange a tax effective plan – leaving more for your loved ones and less for the government.