5 Things Bitcoin Owners Must Do When Estate Planning

[BIT-Sharon]

http://www.coindesk.com/5-things-bitcoin-owners-must-do-when-estate-planning/

Much ink has been spilled about the more obvious consequences of bitcoin’s classification as property, namely:

1. Whenever bitcoin is spent on goods or services, the spender must recognize taxable income or loss on the difference between tax basis (usually the price at which he acquired the bitcoin) and the fair market value of the bitcoin at the time spent.
2. Bitcoin miners must recognize ordinary income equal to the fair market value of the bitcoin mined at the time of mining.
3. If your employer pays you in bitcoin, such payments must be reported on your W2 and are subject to tax withholding in US dollars.

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[Kprawn]

This was very informative and not something we think about every day. If you store Bitcoin on online wallets, you have to consider the passwords and the multisig options too and also the devices used for the 2FA.

I wonder how many people have taken their Bitcoins to their graves already, with lost passwords or private keys that were hidden. It might even be that the relatives did not know what Bitcoin was, and they

might have thrown away the "paper work" and the paper wallets with it. This is why communication is so important, when you use Bitcoin. Someone you trust, must know how to access it, when you are gone.

Lesson learned, thanks OP for the reminder. 

[Jorge320]

I saw this article yesterday as well, very insightful...  I can tell you that I'm already thinking about how my family can recover my information should the worst happen.

Can anybody share what their plans are currently should the worst happen?

[hayabusa911]

Thanks for the great read! Finally a article that isn't the same old stuff I have read 100 times before!