Effective asset protection planning requires up to date thinking

On Behalf of | Feb 18, 2022 | Asset Protection Planning |

In the past, New Jersey residents who were preparing for the future and thinking about asset protection as part of their estate plan needed to focus on the basics. That included cash, investments, retirement accounts, real estate, collectibles and items of sentimental value. Today, with the advent of new technologies that have permeated people’s personal and business lives, there is a litany of other factors that must be accounted for and protected. Specifically, that includes digital accounts and assets. Being aware of the various aspects necessary to avoid problems is crucial and should be a part of preparation for the future.

Digital assets include social media accounts, cryptocurrency and more

Just about everyone in all age ranges has a social media account and some form of online presence. Having a plan in place for a social media account can avoid it being taken and used by unscrupulous people for illicit purposes. Some of these accounts even have value. A person who has passed on could have his personal information used illegally or real or intellectual properties stolen. Mentioning what to do with social media accounts as part of the estate plan can provide a layer of protection. With investments, it becomes even more necessary to detail how it should be handled.

Cryptocurrency is relatively new and its nuance is still being figured out. Those who have invested in it do so because of its value and potential for growth. One aspect of it that appeals to many people is that it is well-protected. That, however, can cause problems if it is not mentioned as part of the digital estate. Gaining access to it could be challenging if not impossible and a property of substantial worth could simply sit there and not be given to heirs after a person has died. These are just some of the considerations with digital assets.

Protecting digital assets is fundamental with estate planning

Given the relatively limited number of people who have even created a basic estate plan to begin with – approximately 46% – it is no surprise that digital assets have largely been pushed to the side. This may be due to a lack of understanding as to how complicated asset protection currently is or for other reasons. Regardless, with asset protection planning, it is critical to think about all properties and give them the necessary attention. Having experienced advice as to the available options is imperative to forging a comprehensive and effective plan.

 

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