One of the biggest estate planning mistakes that people make is they forget to protect digital assets. Cryptocurrency and NFTs are becoming more and more popular and, though some coins are super-expensive, others are quite affordable. Crypto exchanges and the like have given people all over the world a chance to own coins with blockchain technology. 

And, because these digital assets have value, they should be included in your estate plan. This article will consist of a brief overview about how to protect digital assets when estate-planning. As always, contact an estate planning attorney with experience in managing these digital assets if you have questions. 

What Constitutes a Digital Asset? 

Pretty much everyone owns a digital asset. Digital assets are personal property kept online or in the digital world. Technically, domain names, electronically-stored videos and photos, emails, and social media accounts are al digital assets. When it comes to estate planning, these digital assets matter. 

But, in the context of today’s day and age, we’re referring to cryptocurrency and other personal property with value. Digital assets are just like real-life assets. You can inherit them, but, if your estate plan doesn’t provide for them properly, your heirs will not be able to access them. As people have more and more of a digital presence, digital asset estate planning is taking on a new importance for estate-holders of all ages.

Four Steps to Note

Obviously, everyone’s digital assets are different, so this “four step plan” is not a hard and fast rule. These steps are just ways to, in general, organize your digital estate plan. An attorney can help you with each. The steps are as follows:

1. Make a list. The first thing you want to do is actually name the digital assets you own. That way, your loved ones know where to find your assets. Possible assets include important passwords, social media and email accounts, and digital property like virtual currency, money transfer apps (Venmo, CashApp, etc.), and domain names. Store this list in a secure location when you have finished it. Make sure your family members know where it is and how to access it. You can even use apps like LastPass and 1Password, which help you manage your accounts, to help make this task easier. 

2. Ensure you own the assets. You may have thought you purchased a digital asset, but double-check to make sure you didn’t just buy a nontransferable license to use the asset. For each of the digital assets on your list, make sure you can track down ownership documents to both ensure and prove that you are the true owner. 

3. Back up cloud-stored data. FidSafe, a free, secure online safety deposit box, is one example of this extra layer of protection. If you have digital assets stored within the cloud, you should back them up onto a storage device or local computer. Do this regularly so that your fiduciaries and family members can access them without running into many obstacles. 

4. Provide consent. This is where a qualified estate planning attorney, preferably one with experience with digital assets, comes in. Work with the lawyer to update your estate plan to give lawful consent for asset providers to divulge electronic communications to authorized people. Consider what information you want to be available, as a blanket authorization might not be appropriate. 

Benefits of Digital Asset Estate Planning 

When you create this estate plan, you’re ensuring that your digital assets are secured not only for your heirs, but also from hackers, fraudsters, and identity thieves. It is just as important a part of estate planning as anything else is. You can even set up different tools, such as a Digital Asset Protection Trust, which act similarly to other trusts. There are a lot of options for digital asset planning and protection out there.

Hopefully, this short guide has helped give you some insight into digital estate planning. As these assets become more and more common, it would not be surprising to see estate planning and digital assets turn into an even bigger topic than it already is. Get ahead of the curve and formulate your plan today. Call WFP and get the help you need. 

Estate planning is best conducted with the assistance of an attorney, who can help you avoid pitfalls. Still, it is important to know what some of the most common estate planning mistakes are—that way, you can avoid them. Below is a list of ten commonly-seen estate planning errors. 

1. Not Planning 

To kick off this list, we’ll talk about one of the worst mistakes you can make: failing to create an estate plan at all. An estate plan offers protection for you after you die and while you are alive. Not only does it provide you with asset transfer after death, there are other important documents, such as a power of attorney and healthcare directive, that can be extremely valuable in an emergency. 

2. Naming Only One Beneficiary

You always need more than one beneficiary for an asset. This is to safeguard the asset, as what happens if the beneficiary dies before you do? For each policy, account, and asset, you should have a contingent beneficiary that is next in line. Even more ideally, consider listing more one contingent beneficiary. 

3. Forgetting Final Arrangements

Advance-planning what you want to happen for your burial arrangements and funeral is a blessing for people you leave behind. Make sure your wishes for end-of-life care, such as assisted living, hospice, and more are known beforehand as well. It will make things much easier for you relatives. 

4. Not Including POAs

Powers of attorney are necessary protective tools in your estate plan. Commonly, they are seen for finance and healthcare. If you are too incapacitated to make your own financial and/or healthcare decisions, a power of attorney will do this for you. You appoint this trusted individual ahead of time to make these decisions, which will keep you safe even when you’re unwell. 

5. What About Digital Assets? 

Cryptocurrency has become more and more popular, and it is something people forget about when they make estate plans. Make sure these digital assets are included in your estate plan—including keys, passwords, and whatever else your executor needs in order to access them. 

6. Not Discussing Ahead of Time 

One way to minimize family drama is to discuss ahead of time what you’re planning to do with your estate plan. Keeping communication open will ensure that any questions are answered, and relatives who might feel as though the process is unfair or confusing will be able to talk to you about it for peace of mind. After all, it is your estate plan—don’t allow anyone to pressure you into making decisions with which you’re uncomfortable. 

7. Being Overly-Specific

Being overly-specific is another pitfall that a lot of people run into. You might own assets at one time in your life that you don’t own in the future. Are the things you’re putting into your will things that you will definitely have, decades from now? Make sure that whatever you include has lasting potential and longevity. 

8. Neglecting Taxes

Don’t forget—an estate plan can help you minimize your tax burden. Talk to an attorney about ways to minimize and eliminate inheritance and estate taxes (legally, of course).

9. Updating Infrequently

Update your estate plan every three to five years or whenever you experience a major life change (wedding, divorce, new baby, etc.). If you update too infrequently, you run the risk of leaving someone out by mistake or having an estate plan that doesn’t reflect your life situation and goals.

10. Improper Trust Funding 

A trust is a great tool to have in an estate plan, but you have to make sure it is properly funded. Creating the trust is half the battle, the funding is the second part. With your attorney, discuss ways to ensure your trust is properly funded. 

These common mistakes are easy to avoid if you have an attorney. Experienced attorneys will know the pitfalls of estate planning, and they can make sure that you’re being inclusive and sensible when it comes to your plan. Contact WFP today.

St. Patrick’s Day is coming up. Every March 17th, the holiday takes place around the world. Green beer, funky accessories, and a lot of partying and parades are the most common ways that people tip their hat to St. Patrick. Leprechauns might play tricks, but, when it comes to keeping family drama out of your estate plan, you’ll need no such thing. 

It’s no secret that families fight, and will contests aren’t uncommon. However, with these tips and non-tricks, you’ll be able to avoid that unpleasantness. There’s no need to pull a leprechaun-esque trick on your family to keep them calm. All you need is efficiency, a good lawyer, and a solid plan. 

What is a Will Contest? 

Rules vary from state to state. In Florida, probate begins when the will is submitted to the local county court. The court used is the one where the individual resided at the time of death. After the will has been filed, creditors and beneficiaries must be notified. After they have been given notice, they have ninety dates to challenge the will. 

There are a few grounds on which someone can contest a will: these include influence, coercion, fraud, and other legal grounds. To contest, someone files a petition in the court where the probate of the will is taking place. The petition requests that the court invalidate or revoke the will because of the stated legal grounds. 

Who Usually Brings Will Contests? 

Generally, it is a wronged family member who usually contests wills. Don’t get us wrong—fraud, coercion, and other valid legal grounds do exist, and, if there has been wrongdoing, it is important that it is stopped and sorted out. But, in situations where a will challenge is not quite so sincere, sometimes it is a family member who feels shorted or left out who mounts this petition.

Will Your Family Have This Drama? 

You know your family better than we do. Maybe you have a son or daughter who feels entitled to something that they don’t deserve. Perhaps a relative thinks they should be your POA for finances, even though they have a reputation for overspending. Every family has its issues, and you can talk to your family about your estate plan to determine who could potentially challenge the will.

Tips for Avoiding Family Strife When Estate Planning 

Though no steps are foolproof, there are ways to avoid family strife when you are estate-planning. These steps provide you with a good opportunity to keep the drama to a minimum, and it is the third of the three that is most important. 

Create an Overview to Share 

Keeping everyone in the dark certainly won’t help matters. You should create an overview document of your estate plan to offer your loved ones clarity. This document, which can include information on your assets and the different tools in your estate plan toolbox, will help your proposed executor understand your estate. The transparency can also help family members who may feel as though the inheritance process is unfair or confusing. Letting people know what you’re doing and your reasoning ensures there are no secrets. 

Communicate 

Keeping the communication lines open will also be a great assist. Meet with family members who have a role in your estate plan and ensure that they know what is contained and how they will be impacted. It is also important to converse with people who you have left out (or, if you cannot do that for some reason, someone close to them). These conversations may be difficult to have, if not a bit awkward, but they will help you keep drama at bay.

Hire A Lawyer 

One thing about estate planning attorneys is that this is not their first rodeo. They know that estate planning can be an emotional and complicated process, and they have likely seen this drama play out time and again. Hiring a lawyer will not only insure that the documents are legally-sound, but the attorney can also help you avoid common pitfalls, act as a sounding board, and even have some of those hard conversations with your family. 

This article might have intimidated you, as it discusses a topic that a lot of us are uncomfortable with: family drama. However, it’s best to brave this issue head-on and not allow it to affect your estate plan. Call WFP today and schedule an appointment. 

Every March 8th, people come together to celebrate International Women’s Day, which is a holiday that recognizes the achievements of women in history (and today). It has us thinking—how are you protecting the women in your life? Our mothers, grandmothers, sisters, and more deserve to have the best legal protection they can. One way you can show appreciation is to help them set up an estate plan. Below are just a few of the many ways that an estate plan can protect you.

Gives You Agency, Even After You Die 

Though the question of what happens after death is a complicated one, estate plans provide at least one part of the answer. These plans are best-known for helping you determine where your assets will go after you die. With documents like will, trust, and more, you can decide what happens to your things after you die (or perhaps even sooner, if you choose a will).

The consequences of not having at least this mechanism in place can be dire. If someone dies intestate with no will, her estate will be divided up by probate court. Probate courts want to settle debt—assets that she might have wanted to go to family could be liquidated to pay off creditors, leaving the family entirely. 

Can Minimize Taxes 

As estate planning is about protecting loved ones, this includes keeping them from getting a huge tax bite from the IRS. When you estate-plan, you transfer assets to heirs, keeping in mind that you want to create the smallest-possible burden for them, as far as taxes go.

Even a small amount of estate planning can help you reduce much—or, if you’re lucky, even all—of their state and federal estate taxes, as well as their state inheritance taxes. There are ways to decrease tax beneficiaries’ income tax, and, without an estate plan in place, you could end up owing good ol’ Uncle Sam quite a bit.

Will Help Your Kids 

We’ve talked about asset transfer and tax shielding, but, if your kids are young, an estate plan can help them in another way. While estate plans have a reputation for being all about the last will and testament, in reality, they are so much more. One document commonly seen in an estate plan is guardianship papers. 

If you have young kids, use these documents to appoint a guardian for them in the event that something happens to you and your spouse. You can choose a trusted relative or close friend for this position, though you should make sure that you speak with them first before putting the paperwork in place. 

Will Protect You, Even When Incapacitated

Most peoples’ worst nightmare is being so sick that they’re stuck in a hospital for days at a time, if not longer. Sadly, these situations happen, and, if you have an estate plan in place, you can keep your finances and healthcare decisions the same as if you were in tip-top shape.

Documents such as a healthcare directive and power of attorney will allow you to make decisions for yourself, either ahead of time or through a trusted proxy. These types of documents are especially important if you are ill already or suffer from preexisting health complications. 

Helps Avoid Tricky Family Situations

Ah, families. They’re wonderful in so many ways, but every family has drama, at least to some extent. Some of that drama can spill over after you die. Estate plans stop fights before they can begin, as they let you pick who controls your finances (power of attorney) or who gets your things after you die. Though will challenges are not unheard of, an estate plan, when properly prepared, should be impervious to those. 

An estate plan can offer great protection to people who need it. If this sounds like something you want for your female relatives, bring them in for a consultation with an estate planning attorney. This attorney can help guide them on what their estate plan should entail.

If you own a business, the last thing you want is for your hard work to be for naught. Have you given much thought to what you want to happen to your business when you die? Though it is a bit morbid, business succession planning is a must-do for any business owner. In this article, we will go through some of the most common, basic business succession planning FAQs.

1. What is business succession planning? 

Let’s start with a basic definition. Business succession planning is a series of both financial and logistical decisions about who you want to take over your business after you no longer run it. There are a lot of elements that go into a successful business succession plan, so it is best referred to as a conglomeration of important steps and documents. 

2. What are the common ways to transfer ownership? 

Some common ways to transfer ownership of your business include selling your shares to a co-owner or key employee. You can also sell your interests back to your company or to an entrepreneur outside the business. If you want, you can even keep it in the family by passing ownership interest to your heir/family member. 

3. Do you have to die for the plan to be put in place? 

Though we referenced death in the opening paragraph, you do not have to die for this plan to be put in place. You can retire or leave the company—all that matters is that you are no longer running the business. 

4. What is the first step? 

The first step of many is to determine a timeline. When do you want the succession to take place? Will it take place on a specific date or if you are disabled or die? After that, you can begin the work of picking your successor, formalizing SOPs, getting your business valuation, and more. 

5. What are some issues that companies face when succession planning? 

Deciding who to promote is often a huge issue when succession planning, along with maintaining the moral of the company. It is in your best interest to do a through evaluation of your proposed successor, as you want them to be someone who will keep company morale boosted. 

6. How do you decide who to promote, if you go that route? 

In reality, that decision is best left up to you. You should contact other people to see what they think, and our best advice is to just consider the issue really carefully. Determining leadership skills is not an easy task, and that is why this step of succession planning is often difficult for companies. 

7. What should the plan include? 

Each business succession plan is tailored to the particular company, but some major documents in the plan usually include a timeline, list of potential successors, Standard Operating Procedures (formalized), a valuation of your company, and details about how your succession will be funded. 

8. Should other people weigh in? 

It can be hard to know who to talk to during a succession. If you have people you rely on, don’t be afraid to ask them what they think. It is a weighty task to set up this sort of plan, and you don’t want to go it alone. Whether you tell your potential successor or not is up to you. Use your best judgment—if in doubt, hold off telling them until it is time. 

9. Can I change the plan?

Double-check with your lawyer just to make sure, but your succession plan can usually be updated, should you change your mind or have circumstances change. 

10. I’m confused. What do I do? 

This process can be confusing, and if you’re struggling, contact an attorney. They are best-suited to give you third-party legal advice and insight. 

Listed above are just some of the pertinent questions that business owners face when they are coming up with a succession plan. Above all, the most important step is number ten. Don’t be afraid to ask for help. Contacting an attorney will help shed light on the process, making it easier to maneuver.